Global semi conductor chip revenue reaches $602B last year By CIOTechOutlook Team

Global semi conductor chip revenue reaches $602B last year

CIOTechOutlook Team | Tuesday, 17 January 2023, 11:37 IST

According to sources, global semiconductor revenue climbed by 1.1% in 2022 to reach $601.7 billion, up from $595 billion in 2021.

The top 25 semiconductor suppliers collectively generated 2.8% more revenue in 2022, accounting for 77.5% of the industry, according to Gartner.

"2022 began with many semiconductor devices in shortage resulting in extended lead times and increasing pricing which led to reduced electronic equipment production for many end markets. As a result, OEMs started hedging themselves from shortages by stockpiling chip inventory," said Andrew Norwood, VP Analyst at Gartner.

"However, by the second half of 2022, the global economy began to slow under the strain of high inflation, rising interest rates, higher energy costs and continued Covid-19 lockdowns in China, which impacted many global supply chains," he added.

According to the analysis, despite revenue declining 10.4% in 2022, Samsung Electronics kept the top rank. This was mainly because of losses in memory and NAND flash sales.

Intel maintained its No. 2 ranking with a 9.7% market share. The company's revenue growth, however, fell by 19.5% as a result of the considerable fall in the consumer PC market and fierce competition in its core x86 processor industries.

The worst-performing device category, with a 10% revenue decline, was memory, which accounted for around 25% of semiconductor sales in 2022, according to the research.

Revenue from nonmemory products as a whole climbed by 5.3% in 2022, but device performance varied substantially.