The worldwide semiconductor business noticed its gross sales dropped round $47 billion to almost $527 billion in 2023, based on estimations by the Semiconductor Trade Affiliation (SIA). This was a pointy downturn from the report 2022, however excellent news is that gross sales picked up considerably within the second half of the yr, displaying indicators of a robust restoration and constructive expectations for the longer term.
The semiconductor business equipped chips price $526.8 billion in 2023, an 8.2% lower from 2022’s all-time excessive of $574.1 billion. Sluggish gross sales of chips within the first half of the yr was attributed to stock corrections by consumer PC, client electronics, and server sectors. In the meantime, chip gross sales in This autumn 2023 jumped to $146 billion, up 11.6% in comparison with This autumn 2022 and eight.4% larger than in Q3 2023. December additionally ended on a excessive notice with gross sales reaching $48.6 billion, a 1.5% enhance from November, based on the SIA.
By way of product classes, logic merchandise — CPUs, GPUs, FPGAs, and comparable gadgets that course of knowledge — led the cost with $178.5 billion in gross sales, making it the business’s largest phase that outsells all three others mixed. Reminiscence adopted with income of $92.3 billion, which was a results of declining costs of 3D NAND and DRAM within the first half of the yr. In each instances, gross sales had been down yr over yr.
In contrast, gross sales of microcontroller items (MCUs) and automotive built-in circuits (ICs) noticed spectacular of 11.4% and 23.7% year-over-year, respectively, with MCUs income reaching $27.9 billion and automotive ICs hitting a brand new excessive of $42.2 billion. Robust shipments of MCUs and automotive ICs point out speedy chip demand progress from makers of automobiles in addition to numerous good gadgets as these industries now use extra semiconductors than ever.
“World semiconductor gross sales had been sluggish early in 2023 however rebounded strongly in the course of the second half of the yr, and double-digit market progress is projected for 2024,” mentioned John Neuffer, SIA president and CEO. “With chips enjoying a bigger and extra vital function in numerous merchandise the world depends upon, the long-term outlook for the semiconductor market is extraordinarily sturdy.”
So far as gross sales of chips throughout totally different elements of the world are involved, Europe was the one area that noticed a rise in gross sales, rising by 4%. Different areas didn’t carry out this effectively: gross sales of chips within the Americas declined by 5.2%, Japan declined by 3.1%, and China skilled the largest drop at 14%, based on the SIA.
“Advancing authorities insurance policies that put money into R&D, strengthen the semiconductor workforce, and cut back obstacles to commerce will assist the business proceed to develop and innovate for a few years to return,” Neuffer mentioned.
Graphs generated by DALL-E/OpenAI primarily based on knowledge from the SIA