According to the report citing the forecast of Malcolm Penn, CEO of semiconductor market research company Future Horizons, the global chip market growth rate will be reduced to 4% in 2022, and will shrink by 22% in 2023.

Penn warned about a 17th semiconductor market recession about 18 months ago. He noted at the time that every warning light was flashing red when it came to the economy, unit demand, capital expenditures and average selling prices.

For several quarters, unit shipment growth has been above the long-term average, meaning customers have been repeating orders and those parts will turn into inventory, Penn said. As customers start reducing orders, the average selling price will also drop.

Driven by the collapse in memory prices, the average selling price of integrated circuits fell 18.1% from $1.350 in the second quarter of 2022 to $1.105 by the end of the quarter, Penn noted. Memory prices led the way with a 20.2% decline. But Penn said it was only a matter of time befor