A recent report from Gartner has revealed that the global semiconductor revenue experienced a significant decrease in 2023. The total revenue amounted to $533 billion, marking an 11% decline compared to the previous year.
The report highlighted that only nine out of the top 25 semiconductor vendors achieved revenue growth in 2023, with the remaining 10 experiencing double-digit declines. This underperformance in the market had a negative impact on several semiconductor vendors.
Intel reclaimed its position as the top semiconductor vendor, surpassing Samsung Electronics in 2023. Qualcomm secured the third spot in terms of revenue, while Broadcom climbed two positions to secure fourth place. However, the biggest gainer was Nvidia, which jumped from 12th position in 2022 to fifth position in 2023. This growth can be attributed to the significant advancements made in the generative artificial intelligence field.
The memory industry faced the most substantial decline in 2023, recording the worst decline in history. According to Gartner spokesperson, the revenue from memory products decreased by 37% in 2023, marking the most significant decline in all segments of the semiconductor market. Specifically, DRAM revenue declined by 38.5%, reaching a total of $48.4 billion, while NAND flash revenue decreased by 37.5% to $36.2 billion.
The decline in the memory industry can be attributed to weaker-than-expected demand and excess channel inventory for smartphones, PCs, and servers, which are the major segments for DRAM and NAND.
Although the report did not provide specific figures for India, a previous report by Deloitte projected that the semiconductor market in India will reach $55 billion by 2026, with a compound annual growth rate (CAGR) of 20% during the period of 2022-2026.
Overall, the global semiconductor market experienced a significant decrease in revenue in 2023, with the memory industry facing the most substantial decline. Semiconductor vendors will need to navigate these market challenges and adapt to changing consumer demands in the coming years.
The source of the article is from the blog zaman.co.at