The Semiconductor Industry Association (SIA) disclosed that semiconductor industry sales amounted to $526.8 billion in the year 2023. This figure represents an 8.2 percent decrease compared to the record-setting sales of $574.1 billion in 2022.
The semiconductor industry experienced a notable recovery during the latter half of 2023, with fourth-quarter sales reaching $146.0 billion, marking an 11.6 percent increase from the same period in 2022 and an 8.4 percent rise from the third quarter of 2023.
The report from SAI said December 2023 has witnessed semiconductor sales of $48.6 billion, reflecting a 1.5 percent surge compared to the previous month’s total. The SIA, representing 99 percent of the U.S. semiconductor industry’s revenue and nearly two-thirds of non-U.S. chip firms, highlighted the positive trajectory in the latter part of 2023.
John Neuffer, President, and CEO of SIA, commented on the industry’s performance, stating, “Global semiconductor sales were sluggish early in 2023 but rebounded strongly during the second half of the year, and double-digit market growth is projected for 2024.”
“With chips playing a larger and more important role in countless products the world depends on, the long-term outlook for the semiconductor market is extremely strong,” John Neuffer said.
Regionally, Europe emerged as the only market experiencing annual growth in 2023, with a 4.0 percent increase in sales. Conversely, annual sales in other regions declined: Japan (-3.1 percent), the Americas (-5.2 percent), Asia-Pacific/All Other (-10.1 percent), and China (-14.0 percent).
In December 2023, sales increased compared to November in China (4.7 percent), the Americas (1.8 percent), and Asia-Pacific/All Other (0.3 percent), while declining in Japan (-2.4 percent) and Europe (-3.9 percent).
The report highlighted noteworthy performances in specific semiconductor product segments during 2023. Logic products dominated with total sales reaching $178.5 billion, securing its position as the largest product category.
Memory products followed closely, with sales totaling $92.3 billion. Microcontroller units (MCUs) experienced an 11.4 percent growth, reaching a total of $27.9 billion.
Particularly, sales of automotive Integrated Circuits (ICs) demonstrated remarkable growth, increasing by 23.7 percent year-over-year to a record total of $42.2 billion.
The industry’s resilience and innovation are poised for sustained growth in the coming years, with continued investment in research and development, workforce strengthening, and trade barrier reduction highlighted as crucial factors.
