Global chip market contraction of 6% in 2023, says analyst

Market news |
By Peter Clarke

The global chip market will contract by 6 percent in 2023, according to market analysis firm Semiconductor Intelligence but with downside risk.

This is a lot more bullish than the 22 percent contraction predicted by Malcolm Penn and Future Horizons (see Chip market growth in 2023 will be ‘deeply negative’ says analyst).

Weakness in the PC and smartphone markets ar being referenced by semiconductor companies as major factors in expected 3Q22 revenue drops. Smartphone unit shipments are expected to decline 7 percent in 2022 after 6 percent growth in 2021. The smartphone market will grow 5 percent in 2023, Semiconductor Insights said referencing data from IDC.

Semiconductor market forecasts from multiple analysts. Source: Semiconductor Intelligence.

On the PC front there was 15 percent growth in 2021 as a result of the Covid-19 pandemic and IDC forecasts declines of 13 and 3 percent for 2022 and 2023, respectively.

Semiconductor Intelligence also takes into consideration global GDP growth and predicts a 3-percentage point deceleration in GDP growth will result in a 16-point deceleration in semiconductor market growth. Semiconductor Intelligence forecasts 5 percent growth in 2022, just below Future Horizons’ forecast of 6 percent growth.

Related links and articles:

News articles:

Semiconductor market strength will roll into 2022

Chip market growth in 2023 will be ‘deeply negative’ says analyst

Analyst warns semiconductor downturn has started

2022 chip market growth will be 11 percent despite headwinds, says IC Insights


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