On December 19, TechInsights published an article predicting a 15% drop in global demand for silicon in 2023 (lower than the 11% drop previously predicted by the agency).
The Zhitong Finance app learned that on December 19, TechInsights published an article predicting that global demand for silicon will drop 15% in 2023 (lower than the 11% drop previously predicted by the agency). This decline was driven by a weak semiconductor market, which has struggled to cope with overstocking and low demand since the second half of 2022. This weakness was largely driven by oversupply, which was driven by abnormal demand during the COVID-19 pandemic. As a result of this challenging background, IC sales are expected to fall 12% in 2023, while IC shipments, which are the main driver of silicon consumption, are expected to fall 14%.
Despite the seasonal downturn, TechInsights predicts that the semiconductor industry will continue to grow over the long term, and silicon demand is expected to grow at a CAGR of 8%. The rise of artificial intelligence, the expansion of the electric vehicle market, and the growth of the data economy are driving this growth.