A global semiconductor shortage created a turmoil in its various end user industries like automobiles, electronics, lighting and power, among others. While the sales witnessed significant ups and downs in 2022, the chip sales reached the highest-ever annual total in 2022. However, the slowdown in the second half of the year, substantially limited growth.
Global semiconductor sales data reported by the Semiconductor Industry Association for March 2023 showed some signs of levelling off at a bottom. Total semiconductor sales fell 19.6 percent year on year in March, compared with declines of 24.1 percent year on year in February and 20.1 percent year on year in January.
According to Nomura, PC and Android smartphone chips would spark the first leg of the chip cycle recovery. AMD (American multinational semiconductor company based in Santa Clara, California) management believes the March quarter represented a bottom for its client (PC) business and expects client segment sales to grow in the June quarter. Another American chip manufacturer, Qorvo’s management believes the March quarter was the low point for China-based Android quarterly revenue and expects total Android revenue to grow quarter on quarter in June. These are some signs of hitting bottom and expectation of a recovery in coming months.
Who are the largest semiconductor producers globally?
According to the semiconductor industry association, the global semiconductor sales reached $574 billion in 2022. Of this, the U.S. semiconductor companies accounted for sales totaling $275 billion, or 48 percent of the global market. U.S. exports of semiconductors were worth $61.1 billion in 2022, fifth-highest among U.S. exports, behind only refined oil, airplanes, crude oil, and natural gas. Furthermore, U.S. semiconductor firms also invested $58.8 billion in research and development, the highest in history.
Source: Semiconductor Industry Association
While the U.S. semiconductor industry is a key driver of the nation's economic strength, national security and global competitiveness, it is critical for policymakers to enact measures that boost the industry's growth. According to the World Semiconductor Trade Statistics Fall 2022 Semiconductor Industry Forecast, the global semiconductor industry sales are forecasted to decrease to $556 billion in 2023, but increase to $602 billion in 2024.
Along with US, other nations that contribute to chip manufacturing are Korea (19 percent), Japan and European Union (9 percent each), Taiwan (8 percent) and China 7 percent). Some non-US manufacturers of industrial electronics and electronics parts companies are Renesas, Rohm, Ibiden and Murata in Japan, while Korean memory chip producers are Samsung and Hynix. The larger Taiwanese chip foundries include TSMC and UMC and Chinese silicon carbide company Sanan.
