World Semiconductor Market Forecast: Contraction in 2023 with Strong Recovery Projected for 2024

The World Semiconductor Trade Statistics (WSTS) has released its latest semiconductor market forecast for November 2023, revising projections with a single-digit contraction of 9.4% in the global semiconductor market for 2023, reaching an estimated valuation of US$520 billion. However, a robust recovery is anticipated in 2024, with an estimated growth of 13.1%.

The updated forecast reflects a slightly better performance in Q2 and Q3, with improvements in certain end-markets. Discrete Semiconductors, driven primarily by Power Semiconductors, are projected to experience a 5.8% YoY growth in 2023. Integrated Circuit categories, including Analog, Micro, Logic, and Memory, are expected to witness an 8.9% decline, less severe than initially forecasted in May 2023.

In terms of regional performance in 2023, only the European market is projected to experience growth (5.9%), while the Americas are expected to decline by 6.1%, the Asia Pacific region by 14.4%, and Japan by 2.0%.

Looking ahead to 2024, the global semiconductor market is expected to experience a robust upswing, with an estimated 13.1% growth, reaching a valuation of US$588 billion. This growth is anticipated to be driven by the Memory sector, expected to soar to around US$130 billion, representing a more than 40% increase from the previous year. All principal segments, including Discrete, Sensors, Analog, Logic, and Micro, are expected to record single-digit growth rates.

From a regional perspective, all markets are poised for ongoing expansion in 2024, with significant double-digit growth forecasted for the Americas and Asia Pacific regions.

Source: WSTS Semiconductor Market Forecast Fall 2023

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