Global semiconductor sales hit $526.8bn in 2023
Revenue for the world's chip industry fell by 8.2% in 2023, but the year finished strongly with 4Q sales up 11.6% on the previous year.
New 2023 data from the Semiconductor Industry Association (SIA) reflects what was a challenging year for the global market thanks to oversupply issues – but with strong signs of a recovery.
It said sales for 2023 totalled USD 526.8 billion, a decrease of 8.2% compared to the 2022 total of USD 574.1 billion (an all time record). 4Q sales of $146.0 billion were 11.6% up year on year and and 8.4% higher than 3Q 2023.
Regionally, only Europe experienced annual growth, with sales increasing 4.0%. All other regional markets showed declines: Japan (-3.1%), the Americas (-5.2%), Asia-Pacific/All Other (-10.1%), and China (-14.0%).
However, in December 2023, there were month-on-month increases in China (4.7%), the Americas (1.8%), and Asia Pacific/All Other (0.3%).
In terms of product, logic was the largest category by sales at USD 178.5 billion in 2023. Memory products were second (USD 92.3 billion), followed by microcontroller units (up 11.4% to USD 27.9 billion) and automotive ICs (up 23.7% year-over-year to a record USD 42.2 billion).
“Global semiconductor sales were sluggish early in 2023 but rebounded strongly during the second half of the year, and double-digit market growth is projected for 2024,” said John Neuffer, SIA president and CEO. “With chips playing a larger and more important role in countless products the world depends on, the long-term outlook for the semiconductor market is extremely strong. Advancing government policies that invest in R&D, strengthen the semiconductor workforce, and reduce barriers to trade will help the industry continue to grow and innovate for many years to come.”
SIA represents 99% of the US semiconductor industry by revenue and nearly two-thirds of non-US chip firms.
