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Omdia: Global semiconductor sales still declining in Q3 2022, down to $147 billion

According to Omdia’s Semiconductor Total Competitive Analysis Tool (CLT), the semiconductor market saw exceptional sequential revenue growth during the new crown epidemic pandemic that began in early 2020. This period saw a record eight consecutive quarters of revenue growth. Now, the market has begun to shrink over the past two quarters. semiconductor revenue for the third quarter of 2022 was $147 billion, down 7 percent from $158 billion in the previous quarter.

The decline was uneven, with different parts of the market driving the weakness at different times,” said Cliff Leimbach, senior research analyst. the decline in the second quarter of 2022 was driven by weakness in the personal computer market, where Intel fell 17 percent. The most recent decline is due to weakness in the memory market. Memory revenue declined 27% quarter-over-quarter (QoQ) due to the lower data center, PC and mobile demand, coupled with inventory adjustments by customers.”

After a record run, the semiconductor market has cooled and consumer confidence has weakened, resulting in a historic third-quarter decline. Semiconductor sales have increased in anticipation of increased consumer demand in the second half of the year. The long-term average quarterly growth rate from 2002 to 2021 is 8 percent.

The three memory-focused companies (Samsung Electronics, SK Hynix and Micron Technology) all dropped one spot in the rankings, the report said. While the major memory suppliers accounted for more than $10 billion of the decline in semiconductor revenue in the third quarter of 2022, they weren’t the only companies struggling. AMD’s revenue declined due to slowing demand for personal computers and reduced inventory, the same market conditions felt by Intel in the previous quarter.

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