Semiconductor industry revenue is expected to decline by 3.6% next year

In view of the current weak demand for consumer electronics products, high inventory levels, and customers’ more urgent demands for significantly lower prices, it is expected that the storage market will experience a relatively large decline next year, with revenue falling by 16.2%. The deteriorating economic outlook is negatively impacting smartphones, PCs, and other consumer electronics, analysts expect DRAM revenue to decline 2.6% to $90.5 billion in 2022 and another 18% to $74.2 billion in 2023.

In the first quarter of 2022, a rapidly deteriorating demand environment was masked by higher prices due to NAND flash supplier shutdowns. As a result, there will be a serious inventory surplus in the third quarter of 2022, which will continue into the first half of 2023. Analysts expect NAND flash revenue to grow 4.4 percent to $68.8 billion in 2022, but fall 13.7 percent to $59.4 billion next year. At present, DRAM and NAND flash memory manufacturers have slammed the brakes, trying to maintain the price system and avoid a sharp drop.