Written by Andrew Wooden
The analyst predicts that the industry will rake in $624 Billion in 2024, compared to $534 billion this year.
Revenue for all chip types will grow, but the effect will apparently be particularly pronounced in the memory market, which is forecasted to record a 38.8% decline in 2023 and a growth of 66.3% next year.
‘Anaemic demand’ and declining pricing due to ‘massive oversupply’ will lead NAND flash revenue to decline 38.8% this year, but over the next 3 to 6 months, pricing will ‘hit bottom’ and conditions will improve for vendors, claims Gartner.
Meanwhile an oversupply in the DRAM market’s is expected to continue which will trigger a pricing rebound, the full effect of which will hit in 2024, when revenue is expected to increase 88% to total $87.4 billion.
“We are at 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,” said Alan Priestley, VP Analyst at Gartner. “Reduced demand from smartphones and PC customers coupled with weakness in data centre/hyperscaler spending are influencing the decline in revenue this year.”
