The semiconductor market finally showed quarter-to-quarter growth in 2Q 2023, according to Semiconductor Intelligence referencing World Semiconductor Trade Statistics.
Major semiconductor companies are projecting continued revenue growth into 3Q 2023. The semiconductor market has finally turned and is headed toward probable double-digit growth in 2024, the analyst said.
The global semiconductor market grew sequentially by 4.2 percent in 2Q23 according to WSTS. This was the first sequential growth for 18 months. Compared with a year before the 2Q23 market declined by 17.3 percent – a marked improvement on the 21.3 percent annual decline in 1Q23.
Of the 15 largest semiconductor companies 13 showed revenue gains in 2Q23 and Nvidia, which has not yet reported its results for the latest quarter gave guidance for a 53 percent sequential jump.
Nvidia has said it is experiencing strong demand for AI processors. SK Hynix reported 2Q23 growth of 39 percent. The only companies with revenue declines were Qualcomm (down 10 percent) and Infineon Technologies (down 0.7 percent).
The memory companies, Samsung, SK Hynix, and Micron Technology, have all said they see improving demand in 2H23. Automotive will continue to be a driver of business in 3Q23, according to TI, Infineon, STMicroelectronics and NXP Semiconductors.
However, even with sequential growth in 2Q23, 3Q23 and possibly 4Q23, the semiconductor market is expected to show a substantial decline in 2023. Semiconductor Intelligence (SC-IQ) is forecasting a 13 percent drop in 2023.
For 2024 almost all analysts are predicting double-digit percentage growth between 10 percent and 18.5 percent. The strength of the general semiconductor recovery will depend on the strength of the memory segment and its average selling prices.