According to a recent report by Gartner Inc, the worldwide semiconductor industry experienced a setback in 2023, with a notable 11.1% decline in revenue compared to the previous year. The total revenue for the industry amounted to US$533 billion (RM2.51 trillion).
The top 25 semiconductor vendors also witnessed a substantial decline of 14.1% in revenue in 2023. These top companies make up 74.4% of the market revenue, down from 77.2% in 2022. The decline in revenue was primarily driven by the weak performance of the memory segment.
Alan Priestley, Vice President Analyst of Gartner, stated that the semiconductor market had a difficult year, with memory revenue experiencing one of its worst declines in history. Only nine out of the top 25 vendors were able to post revenue growth, while the rest experienced double-digit declines.
In terms of individual company performance, Intel regained its top position in semiconductor revenue, surpassing Samsung. Nvidia also entered the top five with an impressive growth rate of 56.4%, driven by its dominance in artificial intelligence (AI) silicon. STMicroelectronics secured the eighth spot with a 7.7% revenue increase, fueled by strength in the automotive sector.
The decline in revenue was primarily attributed to weaker-than-expected demand and excess channel inventory in smartphones, personal computers, and servers, resulting in a 37% decline in memory product revenue. However, non-memory products fared better, with a smaller decline of 3% in revenue. This was due to a comparatively stable pricing environment and growing demand in AI applications, electric vehicles, and the defense and aerospace industries.
Despite the challenging year for the semiconductor industry, there are opportunities for growth in non-memory products and emerging technologies. As the industry navigates through these challenges, it will be crucial for companies to adapt and innovate to stay competitive in the evolving market landscape.
The source of the article is from the blog toumai.es