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© Omdia Analysis | November 25, 2022

The semiconductor market declines into uncharted territory

It would be an understatement to say that the semiconductor market has experienced an exceptional run of sequential revenue growth over the past years. But the party very much seems to be over.

According to Omdia’s Semiconductor Competitive Landscape Tool (CLT), the market experienced a record eight-straight quarters of revenue growth during the COVID-pandemic period that began in early 2020. But as pointed out by Omdia, the market has now begun to shrink for the last two quarters. 3Q22 semiconductor revenue was USD 147 billion, down 7% from the previous quarter of USD 158 billion.

“The decline in the market has not been uniform,” says Omdia Senior Research Analyst, Cliff Leimbach in a press release. “Different parts of the market are driving the weakness at different times. 2Q22’s decline was driven by a weakened PC market, with Intel declining 17%. The most recent decline is due to weakness in the memory market. Memory revenue is down 27% quarter on quarter (QoQ) as data center, PC, and mobile demand declined in combination with inventory adjustments from customers.”  

After a record run, the semiconductor industry has slowed down, and consumer confidence is ebbing, leading to a third-quarter decline that is – as Omdia puts it – unprecedented. From 2002 through 2021, the long-term average quarterly growth was 8%.

© Omdia
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November 15 2022 12:19 am V20.10.16-1
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