Gartner forecasts chip sales growth to slow down in 2022, fall next year

IT analysis agency Gartner stated on Wednesday it expects world semiconductor sales development to decelerate in 2022 and fall 2.5% subsequent yr, harm by weak gross sales of cellphones and private computer systems.

The analysis agency stated that rising inflation and better power and gas prices are placing stress on shopper disposable earnings, affecting spending on digital merchandise comparable to

and smartphones.

It forecasts world semiconductor income to develop 7.4% in 2022 to $639.2 billion, down from its earlier view of 13.6% development and in contrast with development of 26.3% final yr.

For subsequent yr, Gartner expects chip income to contract to $623.1 billion.

“It might simply be rather a lot worse than that, however it should most likely backside out subsequent yr after which begin to recuperate in 2024,” Richard Gordon, vice chairman at Gartner, stated in an interview.

Larger demand for smartphones and PCs through the pandemic overwhelmed chip factories, resulting in shortages in different industries, growing costs and delaying manufacturing.

Nonetheless, cell phone shipments in 2022 at the moment are anticipated to fall to 1.46 billion items from 1.57 billion.

When hundreds of thousands of cell telephones are taken out of the market, the market flips into an oversupply and chip pricing tends to fall dramatically, Gordon stated.

In opposition to the backdrop of chip scarcity, the European Union and america have additionally introduced massive subsidy plans to draw chipmakers comparable to Intel to construct factories on their shores to cut back dependency on Asian suppliers.

Whereas TSMC, the world’s largest contract chipmaker, and chip-gear maker ASML have reported sturdy outcomes, chipmaker Micron had warned of a down cycle.

Some world producers, together with Hyundai Motor Co, Nokia and

, stated they’re seeing an easing of the scarcity.

Provide constraints are nonetheless there in some sectors, comparable to in 5G tools, however that the market needs to be in higher form within the first half of subsequent yr, Gordon stated.

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