Notwithstanding the unfavorable memory pricing dynamics, the semiconductor market was able to limit its turnover reduction to 8.2% in the last year, bringing the overall market value to $526.8 billion, an industry association SIA reported. However, the projection for this year forecasts a market capacity growth of 13.1%.
SIA representatives highlight that 2022 presented a high base for comparison as the global market saw a record sale of semiconductor products amounting to $574.1 billion. The challenging market conditions of 2023 couldn’t surpass this. However, chip sales volumes increased in the latter half of 2023, as stated in SIA’s press release. In particular, the fourth quarter brought a revenue increase of 11.6% to $146 billion compared to the same period in 2022. Sequentially, Q4 2023 revenue grew by 8.4%. December sales sequentially grew by 1.5% to $48.6 billion. This points to a hopeful and sustained trend of semiconductor products demand recovery.
SIA’s statistics can aim to represent the broader market since the association encompasses 99% of US chip suppliers and approximately two-thirds globally. The association board is optimistic that this year’s semiconductor sector revenue will grow by at least 13.1%. To ensure steady market growth, governments worldwide are encouraged to support local manufacturers and eliminate trade barriers, as suggested by SIA.
Among the main macro regions, only Europe presented a revenue growth of 4% in the semiconductor segment last year. Japan observed a decrease of 3.1%, both Americas experienced a decrease of 5.2%, China lost a significant 14%, and all other countries, including the Asia-Pacific region, encountered a decline in revenue of 10.1%. Sequential revenue growth in December was observed in China (4.7%), Americas (1.8%), and other ATR countries (0.3%), except for Japan (-2.4%) and China. Europe faced a semiconductor revenue loss of 3.9%.
Revenue distribution in 2023 between different segments of the semiconductor market positioned the logic components sector ahead with $178.5 billion. The beleaguered memory market followed with $92.3 billion. Microcontrollers added a boost to revenue by 11.4% to $27.9 billion, while automotive components underwent a substantial rise by 23.7% to $42.2 billion.
