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LONDON, Sept. 22, 2022 /PRNewswire=KYODO JBN/ --

The second quarter of 2022 was the third consecutive quarter of weakening

revenue growth for the semiconductor market, with the market now in decline

according to Omdia's Competitive Landscape Tracker (

https://omdia.tech.informa.com/topic-pages/semiconductors ). Revenue for 2Q22

declined 1.9% from $161.2 billion in 1Q22 to $158.1 billion in 2Q22. This

decline follows the longest sustained period of semiconductor growth of eight

uninterrupted quarters.

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Cliff Leimbach, Senior Research Analyst at Omdia (

https://omdia.tech.informa.com/authors/clifford-leimbach ) said: "The recent

decline in semiconductor revenue has led to 2Q22 being recorded as the

third-worst performing Q2 in twenty years of Omdia tracking the market. Changes

are coming after an unprecedented run of demand growth from work-from-home and

educate-from-home activity. Given the cyclical nature of the semiconductor

market, we expect the remainder of 2022 and potentially the first half of 2023

will be an adjustment period as the market returns to normalcy."

A contributing factor into the current semiconductor decline is Intel's 2Q22

performance and a decline of 13% decline in their microprocessors (MPU)

business in 1Q. This drop from a market that represents over 10% of the total

semiconductor market has pulled the entire market down.

Additionally, the US dollar strengthened against many foreign currencies in

2Q22 from 1Q22. Companies that report revenue in foreign currencies saw a fall

in revenue when converting to US dollars. Some non-US based companies

experienced a quarterly revenue increase in local currency but a negative

quarterly increase from a US dollar perspective. Together, these factors have

exerted a downward influence on the total semiconductor market revenues in US

dollars.

A review of the top semiconductor firms' performance highlighted Intel and

NVIDIA's decline combined was $3.7 billion in 2Q22; a result of weak  consumer

demand for their products and OEMs holding less inventory in these uncertain

times. The only other top-ten firm by revenue to decline in 2Q22 was Qualcomm.

The remaining companies increased in revenue during the quarter.

The memory market increased slightly in 2Q, up just over 1%. Samsung is the

number one DRAM and NAND firm. This combined with Intel's results solidified

Samsung into the top semiconductor firm by revenue.

About Omdia

Omdia is a leading research and advisory group focused on the technology

industry. With clients operating in over 120 countries, Omdia provides

market-critical data, analysis, advice, and custom consulting.

Contact:

Fasiha Khan / T: +44 7503 666806 / E: fasiha.khan@omdia.com

Visit Omdia (

https://omdia.tech.informa.com/?utm_source=media&utm_medium=pressrelease&utm_campaign=AImarketmaturity

)

SOURCE: Omdia