Semiconductor Dynamics Report

• 2022 was a tales of two very different halves. Both 1Q22 and 2Q22 revenues achieved record highs, totally $320B. But there were plenty of signs of industry facing headwinds starting to weigh on economies, and demand for electronics. In the second half, the industry saw a significant retraction and was barely able to cross the $300B mark.

• 2023 will face worsening challenges and companies tighten their proverbial belts. Especially in the US, we already seeing layoffs and/or reduced budget plans for 2023.

• Key semi components, such as processors and memories already saw massive ASP declines in second half of last year. We predict ASP erosion will spread to other semi product categories.

• We forecast an extended period of inventory digestion as the industry enters correction. We anticipate the market to return to growth in 2024 under current macro and geopolitical conditions.



Request Free!