Global semiconductor revenue expected to fall 2.5% in 2023

By Tuba Sahin

ANKARA (AA) - Global semiconductor sales revenue is projected to fall 2.5% year-on-year to $623.1 billion in 2023, global research firm Gartner said Wednesday.

Semiconductor revenue growth will slow to 7% in 2022 to $639.2 billion, down from a rise of 26.3% a year ago, according to the latest forecast from the research company.

Richard Gordon, vice president at Gartner, underlined that the global semiconductor market is entering a period of weakness, although chip shortages are abating.

The slowdown stems from pressure on consumer disposable income from rising inflation, taxes, interest rates, and higher energy and fuel costs, Gordon noted, adding:

"This is affecting spending on electronic products such as PCs and smartphones.”

Semiconductor revenues from PCs are expected to see a decline of 5.4% in 2022 while from smartphones they are expected to rise by 3.1%.

"In addition, the automotive electronics segment will continue to record double-digit growth over the next three years as semiconductor content per vehicle will increase due to the transition to electric and autonomous vehicles," Gordon said.

The semiconductor content per vehicle is expected to surge to $931 in 2025 from $712 in 2022, he noted.