World Semiconductor Trade Statistics (WSTS) has lowered its forecast for the global semiconductor market in 2023 from a 4.1 percent decline to a 10.3 percent drop. The market researcher adjusted its prediction “in response to increasing inflation and weakening demand in end markets, particularly those relying on consumer spending,” according to a press release. The downturn will be followed by a robust recovery, with an estimated growth of 11.8 percent in 2024, says WSTS.
Likely reflecting their limited exposure to consumer spending, the European and Japanese markets are projected to experience growth this year, with respective increases of 6.3 and 1.2 percent. Conversely, the remaining regions are anticipated to face a downturn, with the Americas expected to decline by 9.1 percent and the Asia Pacific region by 15.1 percent.
It should be noted that WSTS’s 2023 prediction is the most optimistic among semiconductor clairvoyants. In April, Gartner called for an 11.2 percent drop, Semiconductor Intelligence’s current estimate is a slowdown of 15 percent and Future Horizons has long maintained a 20 percent correction is going down this year.
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