05 Dec 2022 -

Semicon experts say prepare for rebound

Asset tracking and management

2022 will be a year of historic significance for the semiconductor industry, but the industry continues to face major challenges, says the Semiconductor Industry Association (SIA).

“The semiconductor industry is notoriously cyclical, and demand is not expected to rebound until the second half of 2023”, report SemiMedia.

IC Insights forecasts semiconductor sales will rebound with three years of much stronger growth following a cyclical down year in 2023. By the end of the forecast period in 2026, semiconductor sales are forecast to climb to $843.6 billion, representing a CAGR of 6.5 percent.

In 2022, four major semiconductor product categories are forecast to post solid double-digit sales gains. The microcomponents and optoelectronics segments are expected to grow by single-digit amounts. Only the highly cyclical memory market is forecast to post a decline—a big -17 percent decline—that will weigh down overall IC and semiconductor market growth this year.

Total semiconductor sales include the combined sales of ICs, optoelectronics, sensors and actuators, and discretes (O-S-D) components. After soaring 25 percent to $614.7 billion in 2021, worldwide semiconductor sales are expected to increase 3 percent in 2022 and to a new record sales level of $636.0 billion this year.

In a separate report, IC Insights noted capital spending by semiconductor companies reached a record $181.7 billion in 2022.  At the start of this year, semiconductor suppliers were enjoying a strong influx of orders due to robust post-Covid-19 economic activity.  Booming demand pushed most wafer fab utilization rates well above 90 percent. Many semiconductor foundries operated at 100 percent utilization. Capital spending budgets for 2022 were set in place to reflect the strong ongoing demand.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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