Thursday, January 18th 2024
Worldwide Semiconductor Revenue Declined 11% in 2023, Intel Reclaims No. 1 Spot
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).
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)."
Source:
Gartner
"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.
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.
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)."
41 Comments on Worldwide Semiconductor Revenue Declined 11% in 2023, Intel Reclaims No. 1 Spot
Intel will probably start to pull more and more ahead over the next years, with 20A and 18A almost ready + Open for business.
Maybe AMD will use Intel fab in a few years :laugh:
Don’t be fooled as long as Intel makes its own chips its too risky for direct competitors to use IFS as Intel would favor the manufacturing of its own chips while using less quality production controls for its competitors. Its a tricky situation since Intel has so much fab capacity but lower performing products but as long as TSMC (and partly Samsung) can keep up with demand then IFS will not grow.
AMD had some good runs back in the days as well but Intel always came back eventually. Ryzen 3000 and forward has been great. 1000 and 2000 series not so much.
I will probably be buying 8800X3D/9800X3D later this year tho, unless Intel impress with Arrow Lake and 20A, we will see.
There's pros and cons of being fabless, AMD saw the pro during Intels sleeping CEO days while being stuck at 14nm, tables are turning after Pat Gelsinger took over the chair and replaced people + all those brand new fabs are starting to be ready for mass production.
Intel took 1st spot even without all their fabs running at full blast.
Intel Fab 52 + 62, and 27 eventually, is going to be very important
Could see Apple start using 18A as soon as possible, they wanted chip production out of Asia for years
If Trump winning, it could hurt TSMC alot going forward. TSMC is where they are today because of Apple money.
I know this view is extremely unpopular especially on a DIY tech site but you live with the market you have not the market you want.
Most PC gamers are buying low to mid-end and this is exactly Intels focus for now. Also AMDs which are not really selling much high-end GPUs anyway.
AMD will be gone long before Intel thats for sure. Intels revenue is like 3 times AMDs even in times where AMD is going great and Intel spends tons of money on new fabs. Tables are turning fast. I don't expect any of them to vanish any time soon tho.
No one is choosing Intel’s IGP. It comes with all CPUs. People are buying complete systems based on price. Systems without discrete graphics cards are cheaper.
But the reason AMD and Nvidia are accelerating is not because of what GPU is in client computers but Big Data computers. Intel is dead in this space. Ponte Vecchio is not successful. And just like the Itanium and Xeon Phi before, Intel’s compute GPUs will get cancelled.
Intel’s biggest achievement, Aurora, is way late and when initial performance numbers were finally released, only half of the potential compute capabilities were functional. Not a good sign.
The money is in compute GPUs and chip manufacturing. Last quarter TSMC made around $20B and Nvidia made $18B. Intel made $13B.
Intel iGPU is in 98% of enterprise laptops, I work with B2B sales and AMD barely moves any machines in this segment. Too much fragmentation, AMDs mobile segment is a big mess really with mixed architectures and designs + tons of issues with networking and display drivers in combination with port reps and monitors. Many companies tried going AMD because of price but went screaming back to Intel on the next upgrade cycle.
Intel still owns most Enterprise segment too, AMD is not even close.
For CPU desktop and gaming market, AMD does well but Intel still sits at most marketshare, around 65-70%
AMD have a hard time competing with cheap Intel CPUs because Intel has cheaper motherboards and don't need expensive memory to perform well. Stuff like 12400,13400 etc, are better value than AMD for mid-end gaming. Pushed like crazy in the OEM sector too.
This post was about Intel being 1st and you act like they are struggling to stay alive? They had hard times 2018-2019ish till 2022 or so but they are slowly regaining and will soon regain process leadership as well. If 20A is on point they will start their roll and AMD will be pushed back to focussing on being "great value" again. AMD had some good runs earlier too but Intel always came back.
Arc as we know it was a 2022 and 2023 release, all using same arch in difference scaleZero decline, Nvidia is pushing mad numbers here and the biggest problem for Nvidia is actually making enough chips. They scaled back on gaming to raise enterprise and AI chip output. For now. They can adjust when needed.
Just because they rebranded their 5 year 10nm delays to "Intel 7" does not mean that they will now catch up with TSMC
They were always advancing their CPUs to their latest fab nodes even with very low yields and absorbing that cost which worked well when everyone else also had their own fabs
Reached capacity? Build more fabs
The last 5 years are the slow downfall of a giant
They are not 3-6 years behind TSMC haha. TSMC is stuck at 3nm for now as well, and Intel 20A is at least on par with TSMC 3nm.
Once again, Intel is 1st in the semiconductor revenue. No problems at all. They are gaining not loosing.Talking about AI GPUs and look at Nvidia's 56.4% increase maybe :D
Intel 1st in e-waste
Hell they just put out a dual core lol
People, what the hell are you even talking about???
Intel 7nm was planned for 2-3years later
The first production chips appeared in very late 2019 with Ice Lake running on 10nm for laptops and Xeons and finally released Tiger lake, the first desktop 10nm parts in late 2020
Meanwhile TSMC had 7nm chips since 2018 (equal to Intel's 10nm)
Again, whos 1st in this arcticle?
Ryzen 3000 dropped in summer 2019 on TSMC 7nm, and this is a big part of why AMD went from mediocre to good, before that they used the terrible GloFo 12nm process which gimped clockspeeds on Ryzen 1000 and 2000 series which posed no threat to Intel outside of being somewhat useful for some people, instead of absolutely terrible AMD CPUs before them.
AMD relies 100% on TSMC and when TSMC drops behind Intel, which they will eventually, AMD will have a hard time. They need to be using TSMC most advanced nodes, which is what Apple has priority on and this is going to be very expensive for AMD.
Intel has been able to compete with AMD just fine while using subpar nodes. Worst years are behind now.
Just like Nvidia beat Radeon 6000 series while using Samsung 8nm which is closer to TSMC 10nm in reality. AMD was not even able to win, while using a more advanced process node.
If AMD was forced to use an inferior process, they would not be able to compete in the high-end. We saw that with GloFo 12nm. However both Intel and Nvidia was able to do it.
A decade back tho? More like 5 years
I will probably be using a Ryzen 8800X3D/9800X3D later this year, but I expect to come crawling back to Intel for the next upgrade. I expect Intel to have process lead by 2026 or so. Their fabs will be open for business for everyone too. Intel will remain 1st in the semiconductor market for sure.
Intel Q3 2023 $14B
AMD Q3 2023 $6.1B
Again businesses are not choosing iGPUs. They are choosing complete systems. Intel is still in the majority of these systems. BoA IT buyers are not saying ‘man those Intel iGPUs are so good. We need those.’ They are saying ‘we can get 1000 dell laptops for x amount over Lenovo.’ Those laptops happen to have Intel in them. Get real.
And again the money is in Big Data hardware. All Intel’s market share is from being the leader for so long. Now they are declining.
i740 in 1998
Larrabee
DG1
DG2
www.computer.org/publications/tech-news/chasing-pixels/intels-gpu-history