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TAP TIMES -28- SEPTEMBER 2022
Chip revenue growth may slow Memory demand and pricing have soft-
to 7% this year — Gartner ened, especially in consumer-related areas
like PCs and smartphones, which will help
STAMFORD, Conn. — Global semi- lead the slowdown in growth.
conductor revenue is projected to
grow 7.4% in 2022, down from 2021 PC shipments declining
growth of 26.3%, according to the PC shipments are set to decline by 13.1%
latest forecast from Gartner Inc. This in 2022 after recording growth in 2020
is down from the previous quarter’s and 2021.
forecast of 13.6% growth in 2022.
Semiconductor revenue from PCs is es-
“Period of weakness” timated to record a decline of 5.4% in
“Although chip shortages are abating, the 2022. Semiconductor revenue from smart-
global semiconductor market is entering phones is on pace to slow to 3.1% growth
a period of weakness, which will persist in 2022, compared to 24.5% growth in
through 2023 when semiconductor rev- 2021. From an enterprise perspective,
enue is projected to decline 2.5%,” said inventories are recovering rapidly, lead
Richard Gordon, Practice VP at Gartner. times are beginning to shorten, and prices
are starting to weaken.
“We are already seeing weakness in semi-
conductor end markets, especially those Industry down cycle
exposed to consumer spending. “The semiconductor market is entering an
industry down cycle, which is not new, and
“Rising infl ation, taxes and interest rates, has happened many times before,” said
together with higher energy and fuel Gordon.
costs, are putting pressure on consumer
disposable income. This is aff ecting spend- “While the consumer space will slow down,
ing on electronic products such as PCs and semiconductor revenue from the data cen-
smartphones.” ter market will remain resilient for longer
(20% growth in 2022) due to continued
Economic conditions cloud infrastructure investment,” he said.
Overall, 2022 global semiconductor rev-
enue has been reduced from the previ- In addition, the automotive electronics
ous quarter’s forecast by $36.7 billion, to segment will continue to record double-
$639.2 billion, as economic conditions are digit growth over the next three years as
expected to worsen through the year semiconductor content increases.
gartner.com
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