Global semiconductor industry revenue is expected to grow 16.8 percent year-on-year next year, following a slump this year, largely fueled by a surge in demand for memory chips, US-based market information advisory firm Gartner Inc said on Monday.
Gartner said the global semiconductor industry is forecast to generate US$624 billion in sales next year, up from US$534 billion this year, during which revenue is predicted to fall 10.9 percent amid inventory adjustments caused by weak demand.
The global market for memory chips is expected to rebound next year by 66.3 percent, following a fall of 38.8 percent this year due to oversupply issues, Gartner said.
Photo: Reuters
The price of NAND flash memory chips, a type of storage technology that does not require power to retain data, is expected to hit rock bottom over the next three to six months and stage a robust recovery next year, with sales likely to rise 49.6 percent to US$53 billion, Gartner said.
The oversupply of DRAM chips would continue throughout this quarter and trigger a pricing rebound, the full effects of which might emerge next year when sales are estimated to soar 88 percent to US$87.4 billion, it said.
“We are nearing the end of 2023 and strong demand for chips to support artificial intelligence (AI) workloads, such as graphics processing units (GPUs), is not going to be enough to save the semiconductor industry from double-digit decline in 2023,” Gartner vice president analyst Alan Priestley said in a statement.
“Reduced demand from smartphones and PC customers coupled with weakness in data center/hyper scaler spending are influencing the decline in revenue this year,” Priestley added.
Gartner said developments in generative AI and large-language models are driving up demand for high-performance GPU-based servers and accelerator cards in data centers, which subsequently creates a need for workload accelerators.
MANAGING RISKS: Taiwan has secured LNG sufficient to cover 95 percent of electricity demand for next month, UBS said, describing the government’s approach as proactive UBS Group AG has raised its forecast for Taiwan’s economic growth this year to 8 percent, up from 6.9 percent previously, and said expansion could reach as high as 8.6 percent if external energy shocks are avoided. The upgrade reflects a stronger-than-expected first-quarter performance and sustained momentum in artificial intelligence (AI)-driven exports, which UBS said are providing a firm foundation for growth despite geopolitical and energy risks. Taiwan’s GDP expanded 13.69 percent year-on-year in the first quarter, the fastest growth since the second quarter of 1987, the Directorate-General of Budget, Accounting and Statistics (DGBAS) reported on Thursday. On a seasonally
The Fair Trade Commission’s (FTC) ongoing review of Grab Holdings Ltd’s US$600 million acquisition of Foodpanda Taiwan’s operations, announced on March 23, has taken on fresh urgency as industry experts warn that the transaction could embed significant Chinese cybersecurity vulnerabilities into Taiwan’s digital infrastructure through Grab’s deep ties to autonomous-driving firm WeRide (文遠知行). Less than 16 months after the FTC blocked Uber Eats’ direct attempt to acquire Foodpanda Taiwan — citing potential combined market shares of 80 to 90 percent — the emergence of Grab as the buyer has prompted questions about whether the same competitive harm is simply being rerouted
The list of Asian stocks that benefit from business partnership with Nvidia Corp is getting longer, as the region further integrates into the artificial intelligence (AI) chip giant’s business ecosystem. Just in the past week, South Korea’s LG Electronics Inc, Taiwan’s Nanya Technology Corp (南亞科技), as well as China’s Huizhou Desay SV Automotive Co (德賽西威) and Pateo Connect Technology Shanghai Corp (博泰車聯) have become the latest to rally on news of tie-ups, supply-chain participation or product collaboration with the US chip designer. Asian suppliers account for about 90 percent of Nvidia’s production costs, up from about 65 percent last year, data compiled
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is seeking government approval for an advanced wafer fab at the Longtan (龍潭) campus of Hsinchu Science Park (新竹科學園區), the park's bureau said today. In a written reply, the Hsinchu Science Park Bureau said it would submit a proposal for the third phase of the Longtan Science Park (龍潭科學園區), including plans for a TSMC fab, later this month to the National Science and Technology Council for review. The contract chipmaker previously bid to build a fab using a process more advanced than its current 2-nanometer (nm) technology at the Longtan Campus, but the plan was shelved
RSS