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
Yeah they are choosing complete systems and Intel is the one that can deliver. Also during COVID where AMD couldn't. AMD mobile is a mess and everyone with experience about this market knows it. Im shipping 1000s of laptops every week. There's Intel logo on pretty much every one of them, because this is what companies ask for. Why do you think Intel is 1st in this post?
Intel dominates completely in the enterprise segment. AMD takes some server marketshare but Intel still has the majority and its not even close.
Yeah Intel is declining, thats why stock is up 60% in a year and they take 1st place in this thread :laugh: :laugh: Nvidia was the big winner tho. Intel is not going anywhere.Zen and Zen+ was nothing special. Intel could easily counter them by increasing clocks and core count.
First when AMD left the mediocre Global Foundries 12nm node and went for TSMC 7nm, things changed and prices went up too.
Zen 5 at 3nm TSMC vs Arrow Lake on 20A is going to be very interresting. A true next gen battle on even terms.
Intel stock is returning to past gains on AI speculation, but so is AMD.
I know how all the stocks are doing. It's what I do on the side. I gobbled up AMD stock back in 2017 with early Ryzen numbers and sold on the peak in late 21. Has been trading stocks like this since 2010. Owned Tesla, Microsoft, Nvidia, Intel, AMD and many more. Everything sold near the peak or bought again later on a drop. Easy money. I am still waiting to release the Nvidia stocks, still climbing hard. Probably going to keep them into 2025. Almost fcked up during the mining craze and almost sold them. Glad I didnt. Aiming for 2500-3000% gain. Lets see.
Fun fact, amd's market share keeps growing, so sure, intel has a majority market share for now.
That is the brutal reality of all this. When one has to bulk order a few thousand laptops, tons of servers, and other items it's the support that counts not raw performance metrics. And when you boil it all down and then reduce it with acid and look at what's left everyone is just bulk ordering intel systems from Dell, HP, and Lenovo, and if they have a GPU it's going to be nvidia (amd is toxic) unless there is a very specific reason you need to deviate from this. The service on these is vastly superior as well. Support for AMD systems sucks donkey cocks. On an intel system, support is pretty good. Also the HP or Dell support products work best on intel, AMD eh it might work, might not. GPU is the same game, nvidia works, AMD is hold my beer and lets see.
That's why many places will not even consider an AMD option. It's a risk and you'd have to build an entire new image for the AMD systems and nobody wants to do that. When we deploy an AMD system it's usually a specific ask and the funds are pulled from the project not general IT funding and we give them the kicker of "but when this fucks up, and it will, we are not supporting it and you are fucked" and they normally run linux and the developers handle them.
This was even true in AMDs athalon 64 era where they just crushed the competition. It simply wasn't worth the extra time wasted by our department to deal with the systems when the intel systems didn't need it. Why bother?
Intel is fine.
Service matters, enterprises just spend the money and want to have zero issues. I can completely echo what the guy said. The metrics are just different from what we would see as good systems.
I mean it even applies to the Nvidia gaming segment. Part of the reason lots of people choose green is because the dedication to progress is clearly higher than it is at AMD. Its undeniable. Features get there faster, there are more of them, support is better across applications, etc. AMD made big strides since RDNA, but its not the same. I hate Nvidia's guts at the moment, but still, it is what it is, they're doing things right on the quality of their service.
Zen = Ryzen 1000
Zen+ = Ryzen 2000
And Intel easily countered these chips.
12nm GloFo was mediocre because of clockspeeds.