Analysts IC Insights predicted in a report that the global chip market is expected to recover in the second quarter of next year.
The agency said the chip market will contract by 9 percent in the third quarter of this year and will contract further by 8 percent in the fourth quarter, then by 3 percent again in the first quarter of 2023.
After bottoming out in the first quarter, the chip market is expected to start recovering in the next quarter of next year, IC Insights said.
The analyst said the global chip market has had only six contractions of three consecutive quarters in its history since the 1970s. These periods were 1981, 1985, 1996, 1997 to 1998, and 2001.
On all of these occasions, the market rebounded after three consecutive quarters of contraction.
The sixth period was between 2018 and 2019. In the fourth quarter of 2018, the chip market contracted by 9%, followed by a sharp contraction of 17% in the following quarter. After another 1% decline in the second quarter of 2019, the market recovered in the third quarter.
However, there are still uncertainties, such as some international trade wars.
In addition, while the chip market is expected to grow again in the second quarter of next year, on an annual basis, the global chip market is expected to contract by 3% in 2023 compared to a year ago.