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Institution: In 2023, the global semiconductor market will shrink by 4% and the memory chip will decline by 17%

Release time : 2022-12-01

On November 30, Nikkei Asia reported that the global semiconductor market is expected to shrink by 4% to US $557 billion in 2023, the first annual contraction since 2019. This slowdown may indicate broader economic difficulties.

The World Semiconductor Trade Statistics Organization (WSTS) said on Tuesday that the memory market, which accounts for more than one fifth of the total, will decline by 17%.

According to the report, although chip manufacturers have expanded production to cope with tight supply, consumer demand for devices such as smartphones and computers appears to be declining.

Today, technology giants such as Microsoft and Amazon are reducing their investment in data centers because their profits show signs of slowing down, which adds to the downward pressure on the market.

Research institute TrendForce reported that the growth of global server shipments is expected to slow from 5.1% this year to 2.8% in 2023. And the server is one of the biggest uses of memory chips.

However, the demand for automobiles and industrial semiconductors is still large. The wide application of semiconductors makes this market the vane of the whole economy.

WSTS forecasts that Japan, the United States and Europe will grow in 2023. However, other countries in the Asia Pacific region, including China, are expected to decline by 7.5%. At present, China is the largest semiconductor market in the world, accounting for more than 30% of the total.

The report points out that China's influence means that the global semiconductor market may face a greater decline in 2023 than WSTS currently predicts. This is mainly because the United States is imposing stricter restrictions on China's chip technology exports, and China's epidemic prevention and control has affected factory output.

It is worth mentioning that WSTS announced on August 23 that it had lowered the growth forecast of the global semiconductor market size, which is expected to grow by 13.9% this year and 4.6% next year. In June, WSTS is expected to grow 16.3% this year and 5.1% next year. This reflects the continued downward revision of its overall expectations.