Semiconductor Global Market Outlook (Sep 2022): Global Semiconductor Revenue Growth Slows, SiC Market Remains Strong

Global semiconductor revenue growth slows to single digit. Global semiconductor revenue has increased 7.3% monthly to $49B in July, but the revenue growth has declined by 6% compared to June and has dropped for 7 consecutive months since January. Slowing demand in PC and smartphone market has led to falling prices for consumer chips. Global PC shipments fell by 15% YoY to 70.2 million in Q2, while global smartphone shipments dropped 8.7% YoY to 286 million in Q2.

IC Insights cut the full-year forecast for global semiconductor capital expenditure by 3% to $185.5B. Major semiconductor foundry companies have increased their capital expenditure in 2020 and 2021, and are expected to further raise their capital spending in 2022, according to previous guidance. However, with slowing demand in the consumer electronics market, we are concerned that semiconductor foundry companies could cut their production capacity and remain cautious on capital spending in the future.

The ongoing Coronavirus outbreak could impact the market demand and could also pose supply-chain risks for chip companies. The technical progress could be slower than expected in the chip industry.