Gartner forecasts worldwide semiconductor revenue to decline 11% in 2023

Gartner forecasts worldwide semiconductor revenue to decline 11% in 2023

DUBAI, UAE. — Global semiconductor revenue is projected to decline 11.2% in 2023, according to the latest forecast from Gartner, Inc. In 2022, the market totaled $599.6 billion, which was marginal growth of 0.2% from 2021.

The short-term outlook for the semiconductor market has deteriorated further. Global semiconductor revenue is forecast to total $532 billion in 2023 (see Table 1).

“As economic headwinds persist, weak end-market electronics demand is spreading from consumers to businesses, creating an uncertain investment environment. In addition, an oversupply of chips which is elevating inventories and reducing chip prices, is accelerating the decline of the semiconductor market this year,” said Richard Gordon, Practice Vice President at Gartner.

Table 1. Semiconductor Revenue Forecast, Worldwide, 2022-2024 (Millions of U.S. Dollars)

| |

| |

2022

| |

| |

2024

| |

Revenue

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599.6

| |

532.2

| |

630.9

| |

Growth (%)

| |

0.2

| |

-11.2

| |

18.5

Source: Gartner (April 2023)

Memory Revenue to Decline 35.5% in 2023 but to Recover in 2024

The memory industry is dealing with overcapacity and excess inventory, which will continue to put significant pressure on average selling prices (ASPs) in 2023. The memory market is projected to total $92.3 billion, a decline of 35.5% in 2023. However, it is on pace to rebound in 2024 with a 70% increase.

The DRAM market will