Global semiconductor revenue passes $600B

Worldwide semiconductor revenue increased by 1.1 percent in 2022 to a total of 602 billion dollars, up from 595 billion dollars in 2021, according to preliminary results from market research firm Gartner. Ten years ago, the semiconductor market was half that size.

“2022 began with many semiconductor devices in shortage resulting in extended lead times and increasing pricing, which led to reduced electronic equipment production for many end markets. As a result, OEMs started hedging themselves from shortages by stockpiling chip inventory,” says Gartner’s Andrew Norwood.

“However, by the second half of 2022, the global economy began to slow under the strain of high inflation, rising interest rates, higher energy costs and continued Covid-19 lockdowns in China, which impacted many global supply chains. Consumers also began to reduce spending, with PC and smartphone demand suffering, and then enterprises starting to reduce spending in anticipation of a global recession, all of which impacted overall semiconductor growth.”