The semiconductor appears to be nearing the end of the downcycle, Semi and Techinsights report. As the decline in sequential IC sales is beginning to moderate, in Q3 the electronics sales are projected to post healthy quarter-on-quarter growth of 10 percent, while memory IC sales are expected to log double-digit growth for the first time since the downturn started in Q3 2022. Logic IC sales are predicted to remain stable and improve as demand gradually recovers.
Recently, data from WSTS inspired confidence at the Semiconductor Industry Association (SIA), which noted that revenue had ticked up in June for the fourth consecutive month. Semiconductor Intelligence agreed that “the semiconductor market has finally turned,” adding that it “is headed toward probable double-digit growth in 2024.”
Until then, headwinds will continue for the semiconductor manufacturing sector in the second half of the year, say Semi and Techinsights. Drawdowns of high inventory at integrated device manufacturer (IDM) and fabless companies will continue to suppress fab utilization rates to much lower levels than those in the first half of 2023. The weakness is projected to extend declines in capital equipment billings and silicon shipments for the rest of the year despite stable results in the first half of 2023.
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