Apr. 28, 2023 /SemiMedia/ -- According to Gartner's latest report, global semiconductor revenue is expected to drop by 11.2% to $532.2 billion in 2023. In 2022, the semiconductor market totaled $599.6 billion, an increase of 0.2% over 2021.

With the economic downturn, weak end-market electronics demand is spreading from consumers to businesses, creating an uncertain investment environment, Gartner said. In addition, an oversupply of chips has led to increased inventories and lower chip prices, which are accelerating the decline in the semiconductor market this year.

In the memory market, overcapacity and inventory build-up will continue to put severe pressure on average selling prices (ASP) in 2023. It is expected that the total output value of the memory market will drop by 35.5% to US$92.3 billion in 2023, but it is expected to rebound with a growth rate of 70% in 2024.

Gartner believes that the DRAM market will be severely oversupplied through most of 2023 due to weak demand and high inventory levels. DRAM revenue will drop 39.4% to $47.6 billion in 2023. The market will turn undersupplied in 2024, with DRAM revenue growing by 86.8% as prices rebound.

Gartner expects that in the next six months, the trend of the NAND industry will be similar to that of the DRAM market. Weak demand coupled with large suppliers' inventories will lead to lower prices. As a result, NAND revenue is expected to decline by 32.9% to $38.9 billion by 2023. By 2024, NAND revenue is expected to grow by 60.7% due to severe supply shortages.