Global semiconductor revenue is expected to fall 11.2 percent to $532 billion in 2023, significantly deteriorating the market’s short-term prognosis. The semiconductor markets for PCs, tablets, and smartphones are stagnant, and the combined markets will account for 31% of semiconductor revenue in 2023. Overcapacity and surplus inventory are causing substantial pressure on average selling prices (ASPs) in the memory market. Due to poor end-equipment demand and large inventory levels, the DRAM market will be significantly oversupplied throughout the most of 2023. The NAND market will be comparable to the DRAM market, with sales falling 32.9 percent to $38.9 billion in 2023.
The previous decades of high-volume, high-dollar content market drivers are coming to an end, particularly in the PC, tablet, and smartphone sectors, where technological innovation is scarce. Covid-19, as well as trade tensions between the United States and China, have accelerated the trend of deglobalization and the emergence of techno nationalism.
