As the year 2022 has come to an end, we are focusing on the semiconductor industry and its growth so far. Last year, the semiconductor industry showcased tremendous growth, which makes us believe that the upcoming year will attract more revenue and growth but unfortunately, the semiconductor industry has seen its revenue decline by 3.6% to $596 billion in 2023 due to the worsening economic situation and the resulting slump in demand for consumer electronics, the report has revealed by Gartner.
While some major categories are still expected to see double-digit year-over-year growth in 2022, led by Analog with 20.8 percent, Sensors with 16.3 percent, and Logic with 14.5 percent growth. Memory is expected to tourns negative in the forecast and decline with 12.6 percent year over year.
“This round of business sentiment is reversing so fast that chip designers were struggling to find production capacity only last year, but now they find chips won’t sell”, Xie Ruifeng from semiconductor industry market research institute ICwise told Caixin.
In 2022, all geographical regions have shown double-digit growth except Asia Pacific. The largest region, Asia Pacific, is expected to decline 2.0 percent. The Americas region is expected to show growth of 17.0 percent, Europe 12.6 percent, and Japan 10.0 percent.
For 2023, the global semiconductor market is projected to decline by 4.1 percent to US$ 557 billion, driven by the Memory segment. In this latest forecast, this category is projected to fall to US $112 billion in 2023, dropping by 17% compared the previous year. Some other major categories showing single-digit growth like Optoelectronics, Sensors, Discrete and Analog.
All regions are expected to remain flat in 2023, only Asia Pacific is estimated to decline with 7.5 percent year over year.
Semiconductor in Indian Market
As India has started focusing on made in India products, the country has pledged to become a bigger semiconductor hub. Recently, the government announced to make first manufacturing plant and the construction will start in February 2023.
However, India has no chip manufacturing plants right now. But, the country has been a hub for chip design and other activities. Intel, for instance, has a sizable design and engineering presence, with 13,500 employees in the country as of last year. Other chip companies in India include MediaTek, TSMC, and NXP Semiconductors.
As, India’s drive to become a chip-making hub is apparently benefiting from the United States’ growing efforts to hamper China’s semiconductor industry. According to the Business Standard, the US’ restrictions on sales of semiconductor manufacturing equipment to China has prompted at least some companies to consider shifting production to India in the future.