A preliminary report by Gartner, Inc. reveals that the worldwide semiconductor market experienced a difficult year in 2023, with revenue declining by 11.1% to reach $533 billion. This decline was primarily driven by a significant downturn in memory revenue, which recorded one of its worst declines in history. The underperformance of the memory market also had a negative impact on several semiconductor vendors, as only 9 of the top 25 vendors managed to achieve revenue growth.
In terms of vendor rankings, Intel regained its position as the number one semiconductor vendor, surpassing Samsung after holding the second spot for two consecutive years. Intel’s revenue for 2023 totaled $48.7 billion, while Samsung reached $39.9 billion in revenue. Another notable player in the market was Nvidia, which made its debut in the top five semiconductor vendors ranking. The company’s semiconductor revenue experienced remarkable growth of 56.4% in 2023, reaching a total of $24 billion. This was largely attributed to Nvidia’s leading position in the artificial intelligence (AI) silicon market.
Looking at the memory segment specifically, revenue for memory products declined by 37% in 2023, marking the largest decline across all segments of the semiconductor market. Weak demand and excess channel inventory in the smartphone, PC, and server sectors contributed to this decline. DRAM revenue experienced a significant drop of 38.5%, totaling $48.4 billion, while NAND flash revenue decreased by 37.5% to $36.2 billion.
On the other hand, nonmemory revenue declined by 3% in 2023, facing weaker demand and excess inventory throughout the year. However, unlike memory vendors, non-memory vendors had a relatively stable pricing environment. The demand for non-memory semiconductors in AI applications, especially in sectors such as automotive (particularly electric vehicles), defense, and aerospace, drove growth in this segment.
Despite the challenges faced by the global semiconductor market in 2023, there were still pockets of growth and opportunities for certain vendors. As the industry continues to navigate volatile market conditions, it will be crucial for vendors to adapt to changing trends and demands to remain competitive in the ever-evolving semiconductor landscape.