Semiconductor supply chain still faces market uncertainty next year, growth expected in 2024
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Update time : 2023-01-04 13:43:53
According to Taiwanese media DIGIGITIMES Research, industry chain sources have revealed that semiconductor supply chain manufacturers will still face relatively high market uncertainty next year and are not expected to be on a clear growth track until 2024.
Industry chain sources revealed that the lack of optimism in the semiconductor market will also affect the semiconductor supply chain, which is also expected to continue to face challenges as the lacklustre conditions in the semiconductor market are expected to continue.
Leading international chipmakers have successively released their business forecasts for 2023, with conservative forecasts for the region and companies all preparing to implement cost control measures. While market demand is generally expected to recover in the second half of next year, most supply chain companies are unsure of the exact starting point and the extent of the recovery, the sources said.
Packaging companies, including Sunrise and KYOCERA, are also helping Taiwan-based mobile phone AP suppliers in China to receive engineering samples, the sources noted. The chip distributor's inventory is also growing because of weak end market demand for non-Apple smartphones. Despite strong shipments of Wi-Fi chips in previous quarters, chip distributor sources noted that demand for Wi-Fi chips is also weakening today.
In its latest report, the research firm expects that after entering the second half of the year, affected by the decline in demand for consumer electronics, the semiconductor market is also facing challenges, with both shipments and prices declining. The global semiconductor market is expected to fall to US$580 billion this year, down 4.4% year-on-year. It is worth noting that the report also mentions that the size of the global semiconductor market will continue to decline next year to an estimated US$557 billion, due to a sharp decline in sales of memory chips.
The report expects overall capacity utilisation at foundries and back-end factories to fall sharply in the first quarter of 2023, but overall capacity utilisation at TSMC, NLM and international automotive chip IDMs is expected to be less affected. However, supply chain sources said they still do not have a clear consensus on the timing of a steady improvement in the market next year.
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