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According to Gartner, global semiconductor revenue only grew by 1.1% in 2022, reaching a total of $601.7 billion. This is an increase from the previous year’s revenue of $595 billion. The report attributes the slow growth in the semiconductor market to the decline in the global economy and a decrease in demand for consumer electronics.
In the latest report published on Tuesday, Gartner, a leading research and advisory firm, stated that the semiconductor industry saw a slight growth in 2022, with the combined revenue of the top 25 vendors in the market increasing by 2.8%. This represents a significant portion of the overall market, as these top vendors accounted for 77.5% of the total revenue generated by the semiconductor industry.
Samsung tops the semiconductor market, Intel comes second
As per the report, Samsung Electronics retained its position as the top semiconductor vendor, despite a 10.4% decline in revenue in 2022, primarily due to a drop in sales of memory and NAND flash. Intel retained the second spot with a 9.7% market share, but its revenue growth dropped by 19.5% due to the decline of the consumer PC market and strong competition in its core x86 processor businesses.
“2022 began with many semiconductor devices in shortage resulting in extended lead times and increasing pricing which led to reduced electronic equipment production for many end markets. As a result, OEMs started hedging themselves from shortages by stockpiling chip inventory,” said Andrew Norwood, VP Analyst at Gartner.
He further adds, “However, by the second half of 2022, the global economy began to slow under the strain of high inflation, rising interest rates, higher energy costs and continued Covid-19 lockdowns in China, which impacted many global supply chains.”
In November 2022, Gartner revised its semiconductor revenue estimates for 2022 and 2023, compared to its July report. However, in its November report, Gartner stated that the semiconductor industry is expected to see a decline of 3.6% in revenue in 2023, due to the deteriorating economic situation and weakening consumer demand, rather than $596 billion.
In the latest report published on Tuesday, Gartner, a leading research and advisory firm, stated that the semiconductor industry saw a slight growth in 2022, with the combined revenue of the top 25 vendors in the market increasing by 2.8%. This represents a significant portion of the overall market, as these top vendors accounted for 77.5% of the total revenue generated by the semiconductor industry.
Samsung tops the semiconductor market, Intel comes second
As per the report, Samsung Electronics retained its position as the top semiconductor vendor, despite a 10.4% decline in revenue in 2022, primarily due to a drop in sales of memory and NAND flash. Intel retained the second spot with a 9.7% market share, but its revenue growth dropped by 19.5% due to the decline of the consumer PC market and strong competition in its core x86 processor businesses.
“2022 began with many semiconductor devices in shortage resulting in extended lead times and increasing pricing which led to reduced electronic equipment production for many end markets. As a result, OEMs started hedging themselves from shortages by stockpiling chip inventory,” said Andrew Norwood, VP Analyst at Gartner.
He further adds, “However, by the second half of 2022, the global economy began to slow under the strain of high inflation, rising interest rates, higher energy costs and continued Covid-19 lockdowns in China, which impacted many global supply chains.”
In November 2022, Gartner revised its semiconductor revenue estimates for 2022 and 2023, compared to its July report. However, in its November report, Gartner stated that the semiconductor industry is expected to see a decline of 3.6% in revenue in 2023, due to the deteriorating economic situation and weakening consumer demand, rather than $596 billion.
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