Gartner Says Worldwide Semiconductor Revenue Declined 11% in 2023
January 16, 2024 | Gartner, Inc.Estimated reading time: 1 minute
Worldwide semiconductor revenue in 2023 totaled $533 billion, a decrease of 11.1% from 2022, according to preliminary results by Gartner, Inc.
“While the cyclicality in the semiconductor industry was present again in 2023, the market suffered a difficult year with memory revenue recording one of its worst declines in history,” said Alan Priestley, VP Analyst at Gartner. “The underperforming market also negatively impacted several semiconductor vendors. Only 9 of the top 25 semiconductor vendors posted revenue growth in 2023, with 10 experiencing double-digit declines.”
The combined semiconductor revenue of the top 25 semiconductor vendors declined 14.1% in 2023, accounting for 74.4% of the market, down from 77.2% in 2022.
Intel Regained No. 1 Spot in 2023
Following the underperformance of memory vendors in 2023, the ranking of the top 10 semiconductor vendors changed year-over-year.
- Intel reclaimed the No.1 spot from Samsung, after two years in the No. 2 position. Intel’s 2023 revenue totaled $48.7 billion while Samsung’s revenue reached $39.9 billion.
- Nvidia’s 2023 semiconductor revenue grew 56.4% to total $24 billion, propelling the company into the top five for the first time ever. This is due to its leading position in the artificial intelligence (AI) silicon market.
- STMicroelectronics moved up three slots to secure the No. 8 spot – the same position it held in 2019. Its revenue increased 7.7% in 2023, largely driven by a strong position in the automotive segment.
Memory Revenue Declined 37% in 2023
Revenue for memory products declined 37% in 2023, experiencing the biggest decline of all the segments in the semiconductor market. “Smartphones, PCs and servers, three of the largest segments for DRAM and NAND, faced weaker than expected demand and excess channel inventory, especially in the first half of 2023,” said Joe Unsworth, VP Analyst at Gartner.
In 2023, DRAM revenue declined 38.5% to total $48.4 billion and NAND flash revenue decreased from 37.5% to $36.2 billion.
Nonmemory Revenue Declined 3% in 2023
Nonmemory revenue fared better and declined 3% in 2023. The market witnessed weaker demand and excess channel inventory negatively impacted the segment throughout the year.
“Unlike the memory vendors, most non-memory vendors experienced a relatively benign pricing environment in 2023,” said Unsworth. “The demand for non-memory semiconductors for AI applications was the strongest growth driver, with the automotive sector (especially electric vehicles), defense and aerospace industries, also outperforming most other application segments.”
Suggested Items
NEOTech Positions Itself as Microelectronics Industry Leader with High-Technology Investments
05/09/2024 | NEOTechNEOTech, a leading provider of electronic manufacturing services (EMS), design engineering, and supply chain solutions in the high-tech industrial, medical device, and aerospace/defense markets, announces a significant investment in acquiring new Palomar 8100 wire bonder machines, enhancing the company’s positioning as a leader of cutting-edge microelectronics assemblies for mission-critical applications.
MKS Instruments Reports Q1 2024 Financial Results
05/09/2024 | MKS Instruments, Inc.MKS Instruments, Inc., a global provider of enabling technologies that transform our world, reported first quarter 2024 financial results.
America Projected to Triple Semiconductor Manufacturing Capacity by 2032, the Largest Rate of Growth in the World
05/08/2024 | SIAThe Semiconductor Industry Association (SIA), in partnership with the Boston Consulting Group (BCG), released a report on the global chip supply chain that projects the United States will triple its domestic semiconductor manufacturing capacity from 2022—when the CHIPS and Science Act (CHIPS) was enacted—to 2032.
Real Time with… IPC APEX EXPO 2024: The Driving World of e-Mobility with Indium
05/08/2024 | Real Time with...IPC APEX EXPOIn the competitive EV market, technology plays a crucial role facing the challenges of infrastructure. As Brian O'Leary explains, Indium's e-Mobility product suite includes proven solder and thermal management products for high reliability.
Incap Releases Unaudited Business Review for January–March 2024
05/08/2024 | IncapRevenue for the first quarter 2024 amounted to EUR 51.4 million (1–3/2023: EUR 72.2 million). Year-on-year the revenue decreased 29.3%, as expected.