December 22, 2023 /SemiMedia/ -- According to the latest report from TechInsights, the semiconductor market has been grappling with excess inventory and sluggish demand since the second half of 2022. Global demand for silicon wafer is expected to fall by 15% in 2023, a decline greater than the 11% previously forecast.

TechInsights expects IC sales to decline by 12% in 2023, while IC shipments, the main driver of silicon consumption, are expected to decline by 14%.

By product category, logic chips have the highest demand for silicon wafers, followed by memory chips, analog chips and other categories. It is expected that the demand for silicon wafers in these three categories will grow simultaneously from 2024 to 2025.

Looking ahead, TechInsights said that despite the seasonal downturn, the semiconductor industry will continue to grow in the long term, with silicon wafer demand expected to grow at a compound annual growth rate of 8%. The rise of artificial intelligence, the expansion of the electric vehicle market and the growth of the data economy will drive increased global silicon demand.