Worldwide semiconductor revenue in 2023 totaled 533 billion dollars, a decrease of 11.1 percent from 2022, according to preliminary data published by Gartner. The memory sector took the brunt of the downturn, recording a sales drop of 37 percent – one of the worst declines in history. Non-memory revenue fared somewhat better, declining only 3 percent in 2023.
“Smartphones, PCs and servers, three of the largest segments for DRAM and NAND, faced weaker than expected demand and excess channel inventory, especially in the first half of 2023,” writes Gartner’s Joe Unsworth. “Unlike the memory vendors, most non-memory vendors experienced a relatively benign pricing environment in 2023. The demand for non-memory semiconductors for AI applications was the strongest growth driver, with the automotive sector (especially electric vehicles), defense and aerospace industries also outperforming most other application segments.”
Following the underperformance of memory vendors in 2023, the ranking of the top 10 semiconductor vendors saw a couple of shuffles. Intel reclaimed the number 1 spot from Samsung, after two years in second position. Nvidia was propelled into the top five thanks to its leading position in AI. Finally, STMicroelectronics moved up three slots to secure the number 8 spot.
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