Don't get in a semiconductor 'doom spiral' – sector will be back with a bang in 2024
The outlook for the global semiconductor sector appears worse than feared, at least for the near future, with analyst Gartner now expecting to see revenue decline by 11.2 percent for 2023. Weakened demand is being compounded by an oversupply driving down chip prices, it said.
Chipmakers are seeing a slowdown in demand thanks to various factors such as the global economic outlook and rising interest rates that have made many consumers think twice about buying a new device; Qualcommfor its 12 percent drop in revenue during the first quarter of this year. It isn't just the device makers working through stockpiles,"semiconductor companies are also sitting on inventory waiting for it to go out the door, and it can take six to nine months for inventory to flush out," Gordon told us, adding:"recovery is on its way – the slump will bottom out this year."
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