KUALA LUMPUR (Feb 6): Global semiconductor industry sales fell 8.2% year-on-year (y-o-y) in 2023 to US$526.8 billion (RM2.5 trillion) from US$574.1 billion, which was an industry record.
In a statement on Monday, the US-based Semiconductor Industry Association (SIA) said sales picked up during the second half of 2023.
It said that in fact, fourth-quarter sales of US$146.0 billion were 11.6% more than the total from the fourth quarter of 2022 and 8.4% higher than the total from third quarter of 2023.
SIA said global sales for the month of December 2023 were US$48.6 billion, an increase of 1.5% compared to November 2023 total.
Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organisation and represent a three-month moving average.
SIA president and CEO John Neuffer said global semiconductor sales were sluggish early in 2023 but rebounded strongly during the second half of the year, and double-digit market growth is projected for 2024.
“With chips playing a larger and more important role in countless products the world depends on, the long-term outlook for the semiconductor market is extremely strong.
“Advancing government policies that invest in R&D, strengthen the semiconductor workforce, and reduce barriers to trade will help the industry continue to grow and innovate for many years to come,” he said.
On a regional basis, SIA said that Europe was the only regional market that experienced annual growth in 2023, with sales there increasing 4.0%.
Annual sales into all other regional markets decreased in 2023: Japan (3.1%), the Americas (5.2%), Asia-Pacific/all other (10.1%), and China (14.0%).
Sales for the month of December 2023 increased compared to November 2023 in China (4.7%), the Americas (1.8%), and Asia Pacific/all other (0.3%), but decreased in Japan (-2.4%) and Europe (-3.9%).
Segments
SIA said several semiconductor product segments stood out in 2023.
Sales of logic products totalled US$178.5 billion in 2023, making it the largest product category by sales.
Memory products were second in terms of sales, totalling US$92.3 billion. Microcontroller units grew by 11.4% to a total of US$27.9 billion.
Sales of automotive integrated circuits grew by 23.7% y-o-y to a record total of US$42.2 billion.