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The 2023 Semiconductor Market Will Be Worth $526 Billion

21/11/2023

Semiconductor Market 2023

According to a recent report by IDC, the semiconductor market is predicted to experience some fluctuations over the next few years. In 2023, the market is expected to be worth $526 billion, which is a 12% decrease from 2022's $598 billion. However, the market is expected to bounce back strongly, with a predicted 20% growth in 2024 to reach $633 billion.

What is driving this growth? One factor is the depletion of inventory in various industries, including PCs, smartphones, automotive, and industrial. Another driving force is the ongoing electrification of the automotive and industrial sectors. Additionally, the increasing use of AI in PCs and smartphones is boosting the demand for advanced semiconductors. Rising memory ASPs are also expected to contribute to market growth.

Fortunately, wafer capacity pricing is predicted to remain flat in 2023 as foundry suppliers steadily improve their utilization rates and demand returns from their core fabless customers. Capital expenditures are also anticipated to improve in the second half of 2024 as regional incentives stimulate investment across the supply chain and revenue shipments match end demand.

Looking even further ahead, IDC predicts that AI silicon will account for almost $200 billion in semiconductor revenues by 2026. Overall, while the semiconductor market may experience some turbulence in the years ahead, there are also numerous promising opportunities for growth and innovation.

Semiconductor Market 2023

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