Gartner Says Worldwide Semiconductor Income Grew 1.1% in 2022

Reminiscence Market Was Worst-Performing Section, Declining 10% With Continued Challenges in 2023

STAMFORD, Conn. — January 17, 2023 — Worldwide semiconductor income elevated 1.1% in 2022 to whole $601.7 billion, up from $595 billion in 2021, in response to preliminary outcomes by Gartner, Inc. The mixed income of the highest 25 semiconductor distributors elevated 2.8% in 2022 and accounted for 77.5% of the market.

“2022 started with many semiconductor gadgets in scarcity leading to prolonged lead occasions and growing pricing which led to lowered digital tools manufacturing for a lot of finish markets. Because of this, OEMs began hedging themselves from shortages by stockpiling chip stock,” stated Andrew Norwood, VP Analyst at Gartner.

“Nevertheless, by the second half of 2022, the worldwide economic system started to sluggish beneath the pressure of excessive inflation, rising rates of interest, increased power prices and continued COVID-19 lockdowns in China, which impacted many international provide chains. Customers additionally started to scale back spending, with PC and smartphone demand struggling, after which enterprises beginning to scale back spending in anticipation of a world recession, all of which impacted general semiconductor progress.”

Samsung Electronics maintained the highest spot though income declined 10.4% in 2022, primarily resulting from declines in reminiscence and NAND flash gross sales (see Desk 1). Intel held on to the No. 2 place with 9.7% market share. The corporate was impacted by the numerous decline of the patron PC market and robust competitors in its core x86 processor companies and income progress declined 19.5%.

Desk 1. Prime 10 Semiconductor Distributors by Income, Worldwide, 2022 (Thousands and thousands of U.S. {Dollars})

Supply: Gartner (January 2023)

Reminiscence Income Declined 10% in 2022
Reminiscence, which accounted for round 25% of semiconductor gross sales in 2022, was the worst-performing machine class, experiencing a ten% income lower. By the center of 2022, the reminiscence market was already exhibiting indicators of a big collapse in demand as digital tools OEMs began to deplete reminiscence stock they’d been holding in anticipation of stronger demand. Situations have now worsened to the purpose the place most reminiscence firms have introduced capital expenditure (capex) reductions for 2023, and a few have minimize wafer manufacturing to scale back stock ranges and attempt to deliver the markets again into steadiness.

Nonmemory Income Up 5% in 2022

Total nonmemory income grew 5.3% in 2022, however the efficiency diverse wildly throughout the totally different machine classes. The strongest progress got here from analog with a 19% improve, carefully adopted by discretes, up 15% from 2021. The expansion for each analog and discretes was pushed by sturdy demand from the automotive and industrial finish markets underpinned by secular progress tendencies in automobile electrification, industrial automation, and power transition.

Gartner purchasers can learn extra in “Market Share Evaluation: Semiconductors, Worldwide, Preliminary 2022.”

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