Gartner Sees Global Semiconductor Growth Slowdown Amid Pandemic Recovery Thanks To Inflation, Fuel Costs

IT research firm Gartner expects global semiconductor sales growth to slow down in 2022 and fall 2.5% in 2023 due to weak sales of mobile phones and personal computers, Reuters reports.
Gartner highlighted how the surging inflation and higher energy and fuel costs wreaked a double whammy on consumer disposable income, affecting spending on electronic products like PCs and smartphones.
Gartner expected global semiconductor revenue to grow 7.4% in 2022 to $639.2 billion, down from its previous view of 13.6% growth compared with 26.3% last year.
For 2023, Gartner expects chip revenue to contract to $623.1 billion.
"It could easily be a lot worse than that, but it will probably bottom out next year and then start to recover in 2024," VP Richard Gordon said in an interview.
He acknowledged how the pandemic-induced demand surge for smartphones and PCs inflicted a crisis on other industries, driving up prices and delaying production.
Gordon said that when millions of cell phones are taken out of the market, the market flips into an oversupply, and chip pricing tends to fall dramatically.
Gordon saw supply constraints in some sectors, like 5G equipment, but saw improvement from the first half of next year.
Leading contract chipmaker Taiwan Semiconductor Mfg. Co Ltd TSM and chip-gear maker ASML Holding NV ASML reported strong results, while chipmaker Micron Technology, Inc MU warned of a down cycle.
The U.S. geared up to finalize its Chips Act to drive domestic chipmaking.
Price Action: TSM shares traded higher by 1.21% at $85.44 in the premarket on the last check Wednesday.
Photo via Wikimedia Commons

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