Semiconductor Market Size may Shrink by 4.1% to US$557 billion next Year
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Update time : 2022-12-03 10:04:33
According to the latest forecast released by the World Semiconductor Trade Statistics Society (WSTS), the global semiconductor market size will shrink by 4.1% to US$557 billion in 2023, dragged down by the sharp freeze in the memory chip market, also marking the first time since 2019 that the industry has fallen back after a four-year gap.This also marks the beginning of a correction in the semiconductor market, which was extremely hot during the epidemic. According to WSTS, the global semiconductor market size surged by 26.2% in 2021, while the growth rate slowed significantly to 4.4% this year, although the size of analog chips, sensors and logic chips, for example, still managed to maintain a double-digit percentage growth rate. On the other hand, WSTS expects the market size of memory chips to shrink by 12.6%.
For 2023, memory chips will also be a "drag" for the semiconductor industry, and WSTS expects the memory chip market, which accounts for one-fifth of the industry, to see a 17 per cent year-on-year decline. Others, such as optoelectronics, sensors and analogue chips, will remain up by single-digit percentages. WSTS also said that the contraction of the semiconductor market in 2023 will be largely concentrated in the Asia-Pacific region (-7.5%), with other regions such as Japan, the United States and Europe seeing roughly flat or modest growth in market size. This expectation is also in line with the industry trend in recent months. While semiconductor majors are still in full swing opening plants and expanding production, the downturn is already evident in the consumer market, with demand for smartphones and personal computers all on a downward trend. On the enterprise side, major customers such as Microsoft and Amazon have also started to cut back on their data centre investments, exacerbating the industry's downward headwinds. According to earlier expectations by market research firm TrendForce Tibco, global server chip shipments are expected to decline by 2.8% in 2023; for comparison, growth is expected to be 5.1% this year, and server operators are also among the industry's largest customers for storage chips.
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