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
U.S. Companies Invest Heavily in Robots
04/30/2024 | IFRManufacturing companies in the United States have invested heavily in more automation: total installations of industrial robots rose by 12% and reached 44,303 units in 2023. Number one adopter is the car industry followed by the electrical and electronics sector.
IMI Championing Collaborative Partnerships
04/30/2024 | IMIIntegrated Micro-electronics, Inc. (IMI) held its virtual 2024 Annual Stockholders Meeting at Fairmont Hotel Makati on Thursday, 25 April 2024.
Plexus Announces Fiscal Q2 Financial Results
04/30/2024 | Plexus Corp.Plexus Corp. announced financial results for our fiscal second quarter ended March 30, 2024, and guidance for our fiscal third quarter ending June 29, 2024.
epoxySet Unveils UC-2210M - Urethane for Electronic Component Protection
04/29/2024 | epoxySetepoxySet introduces a new and unique, urethane potting compound. The UC-2210M was formulated to protect electronic components in high moisture and thermal environments including constant atmospheric exposure, oceanographic environments and high humidity conditions.
Peters’ ELPEGUARD SL 1800 FLZ Now Also Certified for Outdoor Applications
04/29/2024 | PetersThe conformal coating ELPEGUARD® SL 1800 FLZ from Peters has been awarded an extended UL certificate. The UL 746 E rating certifies that the acrylate-based coating for printed circuit boards, besides featuring the highest non-flammability rating UL V-0, is also suitable for outdoor use.