Worldwide semiconductor revenue declined 11% in 2023

Gartner Says Worldwide Semiconductor Revenue Declined 11% in 2023

STAMFORD, Conn. — Worldwide semiconductor revenue in 2023 totaled $533 billion, a decrease of 11.1% from 2022, according to preliminary results by Gartner, Inc.

“While the cyclicality in the semiconductor industry was present again in 2023, the market suffered a difficult year with memory revenue recording one of its worst declines in history,” said Alan Priestley, VP Analyst at Gartner. “The underperforming market also negatively impacted several semiconductor vendors. Only 9 of the top 25 semiconductor vendors posted revenue growth in 2023, with 10 experiencing double-digit declines.”

The combined semiconductor revenue of the top 25 semiconductor vendors declined 14.1% in 2023, accounting for 74.4% of the market, down from 77.2% in 2022.

Intel Regained No. 1 Spot in 2023

Following the underperformance of memory vendors in 2023, the ranking of the top 10 semiconductor vendors changed year-over-year (see Table 1).

• Intel reclaimed the No.1 spot from Samsung, after two years in the No. 2 position. Intel’s 2023 revenue totaled $48.7 billion while Samsung’s revenue reached $39.9 billion.
• Nvidia’s 2023 semiconductor revenue grew 56.4% to total $24 billion, propelling the company into the top five for the first time ever. This is due to its leading position in the artificial intelligence (AI) silicon market.
• STMicroelectronics moved up three slots to secure the No. 8 spot – the same position it held in 2019. Its revenue increased 7.7% in 2023, largely driven by a strong position in the automotive segment.

Table 1. Top 10 Semiconductor Vendors by Revenue, Worldwide, 2023
(Billions of U.S. Dollars)

2023  2022                              2023  2023 Market     2022   2023-2022
Rank  Rank  Vendor                   Revenue    Share (%)  Revenue  Growth (%)
----  ----  -----------------------  -------  -----------  -------  ----------
1     2     Intel Corp                48.664          9.1   58.436      -16.7
2     1     Samsung Electronics       39.905          7.5   63.823      -37.5
3     3     Qualcomm                  29.015          5.4   34.780      -16.6
4     6     Broadcom                  25.585          4.8   23.868        7.2
5     12    NVIDIA                    23.983          4.5   15.331       56.4
6     4     SK Hynix                  22.756          4.3   33.505      -32.1
7     7     AMD                       22.305          4.2   23.620       -5.6
8     11    STMicroelectronics        17.057          3.2   15.842        7.7
9     9     Apple                     17.050          3.2   18.099       -5.8
10    8     Texas Instruments         16.537          3.1   18.844      -12.2
            Others (outside top 10)  268.853         50.7  294.729       -8.8
            Total Market             533.025        100.0  599.562      -11.1

Source: Gartner (January 2024)

Memory Revenue Declined 37% in 2023

Revenue for memory products declined 37% in 2023, experiencing the biggest decline of all the segments in the semiconductor market. “Smartphones, PCs and servers, three of the largest segments for DRAM and NAND, faced weaker than expected demand and excess channel inventory, especially in the first half of 2023,” said Joe Unsworth, VP Analyst at Gartner.

In 2023, DRAM revenue declined 38.5% to total $48.4 billion and NAND flash revenue decreased from 37.5% to $36.2 billion.

Nonmemory Revenue Declined 3% in 2023

Nonmemory revenue fared better and declined 3% in 2023. The market witnessed weaker demand and excess channel inventory negatively impacted the segment throughout the year.

“Unlike the memory vendors, most non-memory vendors experienced a relatively benign pricing environment in 2023,” said Unsworth. “The demand for non-memory semiconductors for AI applications was the strongest growth driver, with the automotive sector (especially electric vehicles), defense and aerospace industries, also outperforming most other application segments.”

Gartner clients can read more in “Market Share Analysis: Semiconductors, Worldwide, 2023 (Preliminary).”