PR98890

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

The semiconductor market has had an exceptional run of sequential revenue

growth during the COVID-pandemic period that began in early 2020 according to

Omdia's Semiconductor Competitive Landscape Tool (CLT) (

https://omdia.tech.informa.com/products/semiconductor-competitive-landscape-clt-spotlight-service

). A record eight-straight quarters of revenue growth occurred during this

time. Now the market has begun to shrink for the last two quarters. 3Q22

semiconductor revenue was $147B, down 7% from the previous quarter of $158B.

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"The decline in the market has not been uniform," said Senior Research Analyst,

Cliff Leimbach ( https://omdia.tech.informa.com/authors/clifford-leimbach ).

"Different parts of the market are driving the weakness at different times.

2Q22's decline was driven by a weakened PC market, with Intel declining 17%.

The most recent decline is due to weakness in the memory market. Memory revenue

is down 27% quarter on quarter (QoQ) as data center, PC, and mobile demand

declined in combination with inventory adjustments from customers."  

Following a record run, the semiconductor market has cooled down and consumer

confidence has waned resulting in a historic drop for a third quarter.

Semiconductor sales increased in anticipation of consumer demand increasing in

the second half of the year. From 2002 through 2021, the long-term average

quarterly growth was 8%.

The three memory-focused companies (Samsung Electronics, SK Hynix, and Micron

Technology) all dropped one position. While the major memory suppliers

accounted for a drop of over $10bn in semiconductor revenue for 3Q22, they

weren't the only companies to struggle. AMD revenues declined as they

experienced a slow-down in demand for PCs and inventory reductions, the same

market conditions that Intel felt the previous quarter.

ABOUT OMDIA

Omdia, part of Informa Tech, is a technology research and advisory group. Our

deep knowledge of tech markets combined with our actionable insights empower

organizations to make smart growth decisions.

Fasiha Khan / T: +44 7503 666806 / E: Fasiha.khan@informa.com / W: www.omdia.com

SOURCE  Omdia