Global semiconductor revenue is projected to grow 7.4% in 2022, down from 2021 growth of 26.3%, according to the latest forecast from Gartner. This is down from 1Q22’s forecast of 13.6% growth in 2022. Although chip shortages are abating, the global semiconductor market is entering a period of weakness, which will persist through 2023 when semiconductor revenue is projected to decline 2.5%. Richard Gordon, Practice VP at Gartner has indicated that we are already seeing weakness in semiconductor end markets, especially those exposed to consumer spending. Rising inflation, taxes and interest rates, together with higher energy and fuel costs, are putting pressure on consumer disposable income. This is affecting spending on electronic products such as PCs and smartphones. (CN Beta, Gartner)
United States President Joe Biden has signed into law a bipartisan bill that aims to boost U.S. competitiveness with China. The bill includes more than USD52B for U.S. companies producing semiconductors, as well as billions more in tax credits to encourage investment in chip manufacturing. The White House has said that multiple companies, “spurred” by the chips bill, have announced more than USD44B in new semiconductor manufacturing investments. (CN Beta, The Verge, CNBC)
Samsung will begin making semiconductor parts in Vietnam in Jul 2023 as Samsung further diversifies its manufacturing and as the U.S., China and other powers race to master their technology supply chains. Samsung is now testing ball grid array products and intends to mass produce them at the Samsung Electro-Mechanics Vietnam factory in northern Thai Nguyen Province. Semiconductors would mark a third business for Samsung in Vietnam, where the company makes home appliances and half of its smartphones.(GizChina, IT Home, Asia Nikkei, VN Express)
