Telecom and Automotive Segments Drive Semiconductor Demand

• Semi unit sales continued to decline

• Semi dollar sales ended last year mildly positive, supported by higher ASP

• Consumer electronics was the worst performer while the telecom and automotive segments led growth

 

For CY2022, dollar sales of semiconductors registered a record year due to higher average sales prices (ASP), even as unit sales dropped. Highly cyclical, the semiconductor industry slowed in the second half because of lower consumer goods spending, persistent inflation, higher interest rates, and economic uncertainty. Dollar sales of semiconductors ended last year on a positive note despite the rapid deacceleration in growth (1% MoM, -18% YoY, 18% YoY3); logic, memory, and analog comprise roughly two-thirds of the overall. Memory experienced a significant slowdown as ASP plummeted; DRAM was more impacted than NAND. On the other hand, analog remained strong because of the healthy wireless and 5G market. 

 While unit sales of semiconductors continued to decline (-2% MoM, -17% YoY, -3% YoY3), average sales prices remain elevated (3% MoM, -2% YoY, 23% YoY3) because of supply chain issues. Year-over-year comparisons looked unfavorable as the peak of the cycle was partly stimulated by the pandemic-induced boom. Considering end markets, semiconductor chips directed to consumer electronics deteriorated the fastest, especially considering falling sales for PCs, smartphones, and home electronics. However, automotive chips, particularly infotainment, did exceptionally well. Semiconductor chips headed for the telecommunications industry also remained solid; wireline gained from networking workloads, and wireless benefitted from 5G deployments.