Semiconductor revenue growth expected to dip in 2023
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According to Gartner reports, global semiconductor revenue is projected to decline 3.6% in 2023 to $596B, whereas 2022 market grew 4% to $618B.
âThe short-term outlook for semiconductor revenue has worsened,â said Richard Gordon, Practice VP at Gartner. âRapid deterioration in the global economy and weakening consumer demand will negatively impact the semiconductor market in 2023.â
Semiconductor market demand for the enterprise driven market seems stable, whereas consumer side is majorly impacted by decline in disposable income given the macroeconomic slowdown. âThe relative strength in the enterprise-driven markets comes from strategic investments by corporations that are looking to strengthen their infrastructure to continue supporting their work from home workforce, business expansion plans and ongoing digitalization strategies,â said Gordon.
Memory market is witnessing faltering demand, swollen inventories and lower prices demanded by customers, thus expected to remain flat in 2022 and a decline of 16.2% in revenue in 2023.
Negative economic outlook is expected to impact smartphone, PC and consumer electronics production which is positioning the DRAM or Dynamic Random Access Memory. Gartner analysts foresee revenue to decrease 2.6% to reach $90.5B in 2022 and will further decline 18% in 2023, to total $74.2B.
âWhile the deterioration in the macroeconomic environment will weaken consumer demand, we expect relatively better semiconductor consumption from business investments. Consequently, markets such as industrial, telecom infrastructure and data center will be less impacted by consumer sentiment and spending in the short term,â said Gordon.
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