The World Semiconductor Trade Statistics (WSTS) organization has recalculated its Spring 2022 forecast of the global chip market due to fast-moving changes.
WSTS has reduced its forecast for 2022 to US$633 billion from $646 billion and the annual growth to 13.9 percent from 16.3 percent. It has also reduced its growth forecast for 2023 from 5.1 percent to 4.6 percent.
While most of the 2022 market predictions by product type and by geography have remained the same WSTS has made major changes to the forecast for Europe and for memory components.
Revised WSTS Spring 2022 forecast summary through 2023. Note: numbers in the table are rounded to whole millions of dollars, which may cause totals by region and by product groups to differ slightly. Source: WSTS.
WSTS was predicting the European chip market would grow 20.8 percent in 2022 but has reduced this to 14.2 percent after seeing 2Q22 actual data. This is possibly related to the impact of the war in Ukraine and cost of living crisis prompted by a spike in fuel prices. Also WSTS has curtailed its forecast for Asia-Pacific region from 13.9 percent previously to 10.5 percent.
And WSTS has reduced its annual growth forecast for memory from 18.7 percent to just 8.2 percent. This is related to rapidly falling memory prices in 2Q22 and the reduced outlook for the rest of the year.
WSTS is still forecasting strong chip demand elsewhere with most major categories expected to see high teens percentage year-over-year growth in 2022, led by logic with 24.1 percent growth, analog with 21.9 percent growth, and sensors with 16.6 percent growth.
Optoelectronics remains the weakest category in the forecast and is expected to be roughly flat year over year.
In 2022, all geographical regions are expected to show growth. The Americas are expected to show growth of 23.5 percent and Japan 14.2 percent.
The following year will be characterized by mid-single digit percentage growth across nearly all product categories. All regions are expected to grow in 2023.
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