As per the latest report from Counterpoint Research, global semiconductor industry revenue will decline by 8.8% in 2023 due to a slowdown in corporate and consumer spending.
The major concern is the downgrade of the South Korean tech giant, Samsung’s growth due to the decline of its storage business, Intel regained its top spot in revenue in 2023; Nvidia used artificial intelligence investment to almost double its revenue in 2023, jumping to third place.
The memory industry will be the most affected in 2023 due to weak demand and oversupply. The two main forces driving the recovery of the semiconductor industry in 2024 are the explosive development of artificial intelligence and the recovery of the storage business.
As compared with two years back, the semiconductor industry in 2023 has been reshuffled. Only 6 of the world’s top 20 semiconductor suppliers achieved year-on-year revenue growth.
Overall, we believe artificial intelligence (AI servers, AI PCs, AI smartphones, etc.) will continue to be the main organic growth driver for the semiconductor industry in 2024, followed by a rebound in the memory industry as oversupply conditions normalize and demand recovers . The automotive industry may become another driver of the market due to content growth, which is already the main revenue driver for Infineon and STMicroelectronics in 2023.
