Chip sales see first increase in five quarters

After five straight quarters of decline, the semiconductor industry reversed course and increased revenue in 2Q23, according to Omdia. The market researcher noted a quarterly revenue growth of 3.8 percent. This is in line with historical patterns for the total semiconductor market, with the second quarter revenue showing an average increase of 3.4 percent compared to the first quarter. However, growth within certain semiconductor segments continues to diverge from historical trends. For example, the DRAM market was up 15 percent in 2Q23, compared to a historical pattern of 7.5 percent in the second quarter.

The growth is a welcome sign for the semiconductor industry after the longest period of decline, says Omdia. However, the toll of the shrink has reduced the current market considerably, with the total revenue now at 79 percent of what it was one year ago. It will take time to return to the levels of late 2021.