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On Monday local time, the Semiconductor Industry Association (SIA) of the United States released a report stating that global semiconductor industry sales in 2023 decreased by 8.2% year-on-year, but with the semiconductor market recovering in the second half of last year, this data is expected to achieve a double-digit rebound in 2024.
Global semiconductor sales declined year-on-year last year
The report shows that the global semiconductor industry's total sales in 2023 were $526.8 billion, a decrease of 8.2% compared to the total of $574.1 billion in 2022- the highest annual total in the industry's history.
From a regional perspective, Europe is the only regional market to achieve annual growth in 2023, with sales increasing by 4.0%.
The annual sales of all other regional markets have decreased in 2023: Japan decreased by 3.1% year-on-year, the Americas decreased by 5.2% year-on-year, Asia Pacific/All Other Regions decreased by 10.1% year-on-year, and China decreased by 14.0% year-on-year.
In terms of categories, in 2023, several semiconductor product fields stood out, with sales of logic products reaching $178.5 billion, becoming the largest product category in terms of sales. Memory products ranked second with sales of $92.3 billion. Microcontrollers (MCUs) grew by 11.4% to reach $27.9 billion. The sales of automotive integrated circuits increased by 23.7% year-on-year, reaching a record breaking $42.2 billion.
Expected strong rebound this year
Although global semiconductor sales declined last year, this data rebounded in the second half of last year: in the fourth quarter of last year, global semiconductor sales reached $146 billion, a year-on-year increase of 11.6% and a month on month increase of 8.4%. In December 2023, global semiconductor sales reached $48.6 billion, a month on month increase of 1.5%.
By the end of December last year, semiconductor sales in most regions had rebounded, with the Chinese market growing by 4.7% month on month, the Americas growing by 1.8% month on month, and the Asia Pacific/all other regions growing by 0.3% month on month. However, sales in Japan and Europe decreased by 2.4% and 3.9% respectively month on month.
SIA President and CEO John Neuffer stated
"Global semiconductor sales were sluggish at the beginning of 2023, but rebounded strongly in the second half of the year. It is expected that the market will achieve double-digit growth by 2024."
"As chips play a greater and more important role in countless products that the world relies on, the long-term prospects of the semiconductor market are very strong. Government policies promoting investment and research and development, strengthening semiconductor labor, and reducing trade barriers will help the industry continue to grow and innovate for many years to come."
Based on revenue, SIA covers 99% of US semiconductor companies and nearly two-thirds of non US semiconductor industries, and the data it compiles can largely reflect the global semiconductor industry situation.
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