July 26, 2023 /SemiMedia/ -- According to the latest IDC report, the global semiconductor packaging and testing market reached $44.5 billion in 2022, with an annual growth rate of 5.1%. Affected by inventory adjustments, it is estimated that the global packaging and testing market will decrease by 13.3% annually in 2023.

IDC believes that the sharp drop in demand for consumer electronics, the decline in demand for cloud servers for non-AI applications, and the fact that the semiconductor industry is still in the destocking stage are the reasons for the shrinking market.

The report shows that the capacity utilization rate of most packaging and testing plants in the first half of the year was 50%-65%. With the recovery of inventory-adjusted demand, it is expected to rise to 60%-75% in the second half of the year. Some urgent orders from advanced packaging can increase capacity utilization to 80%, but there is still a gap from 70%-85% in 2022.