The current contraction in the global semiconductor industry is expected to moderate in the second quarter of 2023 and give way to a gradual recovery from the third quarter, forecasts SEMI in a report prepared in partnership with TechInsights. The continued decline in inventories and a low production capacity utilization rate should help to absorb the current surpluses.
In the second quarter of 2023, sales of integrated circuits and shipments in number of silicon units – both in the grip of seasonality – indeed indicate an improvement compared to the first quarter. However, despite this improvement, high inventories continue to hamper deliveries and factory capacity utilization rates remain well below the levels recorded last year (see illustration).
In addition, sales of semiconductor manufacturing equipment continue to decline along with capital expenditure adjustments by major chipmakers, the trade organization said. Indicators point to a likely trough of the current downturn in the second quarter of 2023, with a slow recovery expected to begin in the second half of the year.
“ The current market downturn, compounded by weak consumer demand and high inventory levels, has resulted in a sharp drop in capacity utilization at semiconductor fabs. However, while the inventory correction is expected to end in mid-2023, a slight recovery is expected in the second half of the year, driven by a recovery in inventory demand ahead of the late holiday season. year ,” said Clark Tseng, senior director of market research at SEMI.
“ Despite the ongoing uncertainties and risks, we expect continued production cuts and capital spending, particularly in the memory market, to begin to have a positive impact on market fundamentals in the latter part. of the year, which will result in a more balanced market environment ,” added Risto Puhakka, vice president of market analysis at TechInsights.
SEMI boasts more than 2,500 member companies and 1.3 million professionals worldwide to advance the technology and business of electronic product design and manufacturing. Members of the professional organization include suppliers of materials, production equipment, design software and services.