Country for PR: United States
Contributor: PR Newswire New York
Tuesday, November 22 2022 - 21:03
Omdia: Semiconductor market declines into uncharted (seasonal) territory
LONDON, Nov. 22, 2022 /PRNewswire-AsiaNet/ --

The semiconductor market has had an exceptional run of sequential revenue 
growth during the COVID-pandemic period that began in early 2020 according to 
Omdia's Semiconductor Competitive Landscape Tool (CLT) ( 
). A record eight-straight quarters of revenue growth occurred during this 
time. Now the market has begun to shrink for the last two quarters. 3Q22 
semiconductor revenue was $147B, down 7% from the previous quarter of $158B.

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"The decline in the market has not been uniform," said Senior Research Analyst, 
Cliff Leimbach ( ). 
"Different parts of the market are driving the weakness at different times. 
2Q22's decline was driven by a weakened PC market, with Intel declining 17%. 
The most recent decline is due to weakness in the memory market. Memory revenue 
is down 27% quarter on quarter (QoQ) as data center, PC, and mobile demand 
declined in combination with inventory adjustments from customers."  

Following a record run, the semiconductor market has cooled down and consumer 
confidence has waned resulting in a historic drop for a third quarter. 
Semiconductor sales increased in anticipation of consumer demand increasing in 
the second half of the year. From 2002 through 2021, the long-term average 
quarterly growth was 8%.

The three memory-focused companies (Samsung Electronics, SK Hynix, and Micron 
Technology) all dropped one position. While the major memory suppliers 
accounted for a drop of over $10bn in semiconductor revenue for 3Q22, they 
weren't the only companies to struggle. AMD revenues declined as they 
experienced a slow-down in demand for PCs and inventory reductions, the same 
market conditions that Intel felt the previous quarter.


Omdia, part of Informa Tech, is a technology research and advisory group. Our 
deep knowledge of tech markets combined with our actionable insights empower 
organizations to make smart growth decisions.
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