Semiconductor Revenue Growth Forecast Expects Decline by 3.6% in 2023

[TheLostSwede]

According to data from Gartner, the semiconductor market is expected to decline by up to 3.6 percent in 2023, from a growth of 4 percent this year and 26.3 percent in 2021. This might not be surprising to those that have followed recent developments in the semiconductor market, but it also looks like revenue for 2023 will be closer to that of 2021. This might in part be related to higher costs of manufacturing, but consumer demand is expected to be down in 2023, largely due to less disposable income, related to the current situation with rising inflation and increasing costs elsewhere.

Gartner claims that the enterprise market has been relatively stable and the consulting firm isn't expecting the enterprise market to decline as much as the consumer market when it comes to semiconductor demand. That said, Gartner is expecting the memory market to decline by up to 16.2 percent in 2023, as there's already an oversupply in the market. Likewise, it expects that the NAND flash market will see a decline by up to 13.7 percent in 2023. What isn't clear is how this weaker demand will affect retail prices, but as we've already seen, the DRAM and NAND flash manufacturers have already hit the brakes, to try and prevent a price crash.



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[Hofnaerrchen]

Only bad for shareholders as this will most likely result in reduced prices. Wonder if nVIDIA will get the clue.

 

[medi01]

Growth is expected to decline.

Doesn't beat, but is pretty close to Ruzzian "negative growth".

 

[Easo]

Only bad for shareholders as this will most likely result in reduced prices. Wonder if nVIDIA will get the clue.

Judging by recent events I would say they will try to pass the prices to consumers by rising them again.

 

[mb194dc]

Pretty optimistic me think but we'll see...

 

[Assimilator]

"Forecasted" is not the correct past tense of "forecast".

 

[TheLostSwede]

"Forecasted" is not the correct past tense of "forecast".

Fixed.

 

[Denver]

In my ignorant view I think the prediction is incorrect, the trend is a continuous increase in the use of semiconductors as the range of applications that require it increases every day, I mean... even my refrigerator has a chip now. The forced adoption of electric cars full of embedded chips is also another factor to consider.

 

[TheLostSwede]

In my ignorant view I think the prediction is incorrect, the trend is a continuous increase in the use of semiconductors as the range of applications that require it increases every day, I mean... even my refrigerator has a chip now. The forced adoption of electric cars full of embedded chips is also another factor to consider.

That doesn't mean things won't slow down a bit, be that only for next year or for a few years ahead. People only needs so many SSDs, smartphones, computers and what not. As we're now on the very brink of what seems to be a fairly serious recession, people aren't buying electronics, especially as fuel and electricity prices are most people's biggest concerns to be able to cover right now.

 

[Bomby569]

That's REVENUE, not items sales numbers. Unlike GPU's, the majority of semiconductors have not increased in price that much if at all in same cases. Competition is fierce.