According to Gartner, the semiconductor market this year is projected to grow 13.6% year-on-year to $676 billion (about KRW 863.38 trillion). Analysts highly evaluated the growth potential of semiconductor sales this year, 4.1% points (P) higher than the growth rate predicted in the fourth quarter of last year.
Gartner recently published an 'Updated Report on Semiconductor and Electronic Devices Outlook for Q1 2022' with further information. Gartner predicted that the semiconductor market would reach $639 billion this year at the end of last year, but recently revised their forecast, adding an additional $3.7 billion in sales in the first quarter. The overall growth rate is expected to continue from next year until 2025.
This growth rate is less than last year's growth rate of 23.9%, which was historically the largest market. However, strong growth is expected this year as well.
By sector, memory is expected to see outstanding growth this year. Gartner projects growth in memory to increase by 28% this year, compared to the previous year. It is expected to surpass the growth rate of system semiconductors (11.3%) applied to specific devices such as application processors (AP), discrete semiconductors (10.8%) that provide simple functions such as diodes and transistors, and analog semiconductors (10.4%).
Memory, which will lead the semiconductor market this year, is expected to turn to an oversupply in the second half of 2023. Gartner predicts that memory production will increase compared to demand as the DRAM production capacity of memory manufacturers such as Samsung Electronics, SK Hynix, ChangXin Memory Technologies (CXMT), WinBoard, and Nanya Technology expands. It is highly likely that NAND flash memory will also turn to an oversupply as major semiconductor factories (fabs) ramp up operations.
Gartner forecasts that the semiconductor market will grow by only 3.6% next year due to the oversupply of memory and other factors. In 2024, it is expected to show a negative growth rate of 2.2%, and in 2025, it is expected to record an 8.3% growth rate, forming a $742 billion market.
[Growth forecast of Semiconductor Market]
Source=Gartner
By Staff Reporter Dong-jun Kwon djkwon@etnews.com