KUALA LUMPUR (Feb 8): Worldwide silicon wafer shipments in 2023 decreased 14.3% to 12,602 million square inches while wafer revenue contracted 10.9% to US$12.3 billion (RM58.5 billion) over the same period, according to the US-based SEMI.

Silicon wafers are the fundamental building material for the majority of semiconductors, which are vital components of all electronic devices. The highly engineered thin disks are produced in diameters of up to 12 inches and serve as the substrate material on which most semiconductors are fabricated.

In its SEMI Silicon Manufacturers Group (SMG) year-end analysis report released on Wednesday, the group said the decline, a sharp departure from the three consecutive years of growth previously, stemmed from a slowdown in end-demand, coupled with a broad-based inventory correction.

It said softening memory and logic sector demand led to a decline in orders for 12-inch wafers, while weakening foundry and analog uptake accounted for a drop in shipments of eight-inch wafers.

SEMI SMG chairman and vice president Lee Chung Wei, also chief auditor at GlobalWafers, said shipments of 12-inch polished wafers contracted 13% while those of epi wafers shrunk 5% in 2023.

“Total shipments of all wafer sizes slipped 9% in the second half of 2023 relative to the first half of the year,” said Lee.