The report pointed out that the total revenue of semiconductors in 2022 will be US$599.6 billion, a year-on-year increase of only 0.2%. This is mainly due to the downturn of the global economy, the obvious reduction in consumer demand, and the loss of interest in buying electronic products by businesses. On the other hand, the backlog of chip inventories has also depressed semiconductor prices.

PCs, tablets and smartphones accounted for 31% of semiconductor revenue as the COVID-19 pandemic pushed telecommuting into the new normal, but growth has been sluggish as the global pandemic has been brought under control.

In the automotive and industrial, military/civil aerospace semiconductor market, this year is expected to reach $76.9 billion, an increase of 13.8%.

One area that has severely hurt demand for semiconductors is the memory industry. The market is expected to see a 35.5% decline in revenue this year. The problem in this market is full inventory and weak consumer demand.

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Data show that the semiconductor market revenue in 2022 mainly because of memory and NAND flash sales decreased by 10.4%, but Samsung Electronics still maintain the first shipments. Intel held on to second place with a 9.7 percent market share. Intel’s revenue declined 19.5% due to a significant decline in the consumer PC market and intense competition in its core business of x86 processors.

Memory, which will account for about 25 percent of semiconductor sales in 2022, was the worst-performing device category, with a 10 percent decline in revenue. By mid-2022, the memory market was showing signs of a significant dive in demand as electronics device originators have begun to reduce memory inventories that were built up in anticipation of stronger demand. The situation has now deteriorated to the point where most memory companies have announced capital expenditure (capex) cuts for 2023, and some have cut wafer production in order to reduce inventory levels and try to rebalance the market.

Overall non-memory revenue grew 5.3% in 2022, but performance varied widely by device category. Analog devices led the way with a 19% increase, followed by discrete devices with a 15% increase. Strong demand from automotive and industrial end markets, underpinned by long-term growth trends in automotive electrification, industrial automation and energy transition, is in turn driving growth in analog and discrete devices.

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