Dec. 27, 2022 /SemiMedia/ -- According to semiconductor industry sources, semiconductor supply chain manufacturers will face great uncertainty next year, and it is expected that there will be no growth trend until 2024.

The source stated that international chip manufacturers are relatively conservative in their business forecasts for 2023, and are preparing to implement cost control measures. Although market demand is generally expected to recover in the second half of next year, most supply chain companies are not sure about the exact starting point and the extent of the recovery.

The sources also pointed out that chip distributors are running larger inventories due to weak end-market demand for non-Apple smartphones. Despite strong shipments of Wi-Fi chips in previous quarters, chip distributor sources pointed out that demand for Wi-Fi chips is also weak today.

In the latest report, research institutes predict that after entering the second half of the year, affected by the decline in demand for consumer electronics products, the semiconductor market is also facing challenges, with both shipments and prices declining. The size of the global semiconductor market is expected to drop to US$580 billion this year, a year-on-year decline of 4.4%. It is worth noting that the report also mentioned that due to the sharp decline in sales of memory chips, the size of the global semiconductor market will continue to decline next year, and is expected to drop to US$557 billion.