Semiconductor Manufacturing Monitor Points to Moderating Industry Contraction in Q2 2023
May 16, 2023 | SEMIEstimated reading time: 1 minute
The current global semiconductor manufacturing industry contraction is expected to moderate in the second quarter of 2023 and give way to a gradual recovery starting in the third quarter, SEMI announced in its Q1 2023 publication of the Semiconductor Manufacturing Monitor (SMM) Report, prepared in partnership with TechInsights.
In the second quarter of 2023, industry indicators including IC sales and silicon shipments – both partly supported by seasonality – point to quarter-over-quarter improvements. However, despite the gains, elevated inventories continue to dampen silicon shipments and fab utilization rates remain significantly lower than levels registered last year. In addition, semiconductor equipment sales continue to decline in parallel with capital expenditure adjustments by major industry stakeholders.
The indicators point to a likely bottoming of the current downturn in the second quarter of 2023 with a slow recovery expected to begin in the year’s second half.
“The current market downturn is compounded by soft consumer demand and elevated inventory levels and has led to a sharp decline in semiconductor fab utilization,” said Clark Tseng, Senior Director of Market Intelligence at SEMI. “However, as the inventory correction comes to an end in mid-2023, a mild recovery is expected in the second half of the year driven by a pickup in demand for inventory and the holiday season.”
“Despite ongoing uncertainties and risks, we expect continuing production cuts and capex reductions, especially in the memory market, will start having a positive impact on market fundamentals in the latter part of the year, resulting in a more balanced market environment,” said Risto Puhakka, VP of Market Analysis at TechInsights.
The Semiconductor Manufacturing Monitor (SMM) report provides end-to-end data on the worldwide semiconductor manufacturing industry. The report highlights key trends based on industry indicators including capital equipment, fab capacity, and semiconductor and electronics sales, and includes a capital equipment market forecast. The SMM report also contains two years of quarterly data and a one-quarter outlook for the semiconductor manufacturing supply chain including leading IDM, fabless, foundry, and OSAT companies. An SMM subscription includes quarterly reports.
Suggested Items
iNEMI Names Grace O'Malley CTO
05/02/2024 | iNEMIThe Board of Directors of the International Electronics Manufacturing Initiative (iNEMI) has named Grace O'Malley Chief Technical Officer (CTO).
Intel Takes Next Step Toward Building Scalable Silicon-Based Quantum Processors
05/02/2024 | BUSINESS WIRENature published an Intel research paper, “Probing single electrons across 300-mm spin qubit wafers,” demonstrating state-of-the-art uniformity, fidelity and measurement statistics of spin qubits.
ZESTRON Academy Launches 2024 Advanced Packaging & Power Electronics Webinar Series
05/01/2024 | ZESTRONZESTRON, the leading global provider of high-precision cleaning products, services, and training solutions in the electronics manufacturing and semiconductor industries, proudly announces the launch of its highly anticipated webinar series on Advanced Packaging & Power Electronics, a webinar series on the latest innovations, cleaning, and corrosion challenges.
NextFlex Convenes the Hybrid Electronics Community at Binghamton University
05/01/2024 | NextFlexBinghamton University hosted the NextFlex hybrid electronics community on April 18 for a day of expert presentations, breakout sessions on technology and manufacturing topics, and networking.
HQ NextPCB of HQ Electronics Debut on the International Stage for Electronics Manufacture at IPC APEX 2024
05/01/2024 | PRNewswireHQ NextPCB of HQ Electronics, a leading Chinese-based multilayer PCB manufacturer and assembly house showcased its industrial prowess on the international stage for the first time at the IPC APEX Expo 2024.