MIC: Global IC market will drop by 3.1% this year and recover in 2024
May. 15, 2023 /SemiMedia/ — According to the Semiconductor industry report recently released by Market Intelligence & Consulting Institute (MIC), the global market is expected to decline by 3.1% in 2023. It is expected that the second half of the year will improve from the first half and recover in 2024.
MIC estimates that the global market size in 2023 will be US$556.6 billion. The reason for the decline was negative factors in the external environment and poor demand in the consumer market. In addition, EMS/OEM, system integration factories, semiconductor chip distributors and manufacturers are all facing the problem of excessive inventory levels, which also affects the global semiconductor sales performance this year.
MIC said that the development of artificial intelligence will bring business opportunities to the chip industry. As AI technology accelerates calculations from specific fields, it progresses to general-purpose calculations such as ChatGPT, which promotes data centers and high-end servers, which in turn drives demand for CPUs, GPUs, FPGs, and customized AI chips.
While AI creates business opportunities for semiconductors, AI chips still face many challenges. MIC pointed out that currently AI computing is still dominated by existing processors or embedded AI units, and it is difficult for independent AI computing chips to develop a large-scale market. With the gradual focus and expansion of AI applications, the demand for special-purpose AI computing such as audio-visual and voice will expand to the GPU-like market.
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