World Semiconductor Trade Statistics, a nonprofit that tracks shipments, lowered its market outlook to 13.9% growth this year from 16.3% previously. In 2023, chip sales will grow only 4.6%, the slowest pace since 2019.
The market is expected to surpass $600 billion again this year, according to WSTS. The forecast growth for next year would be the weakest since a 12% drop in sales at the height of the trade war between the United States and China. Chip sales are an important indicator of global economic activity as households and businesses increasingly depend on digital devices and online services to consume and grow. President Joe Biden signed the so-called CHIPS and Science Act this month aimed at bolstering the US semiconductor industry as China rushes to expand its own chipmaking capacity.
Last month, the International Monetary Fund lowered its forecast for global growth and said 2023 could be tougher than this year. A model from Bloomberg Economics predicts a 100% probability of a recession in the United States over the next 24 months.
Based in Morgan Hill, Calif., WSTS counts Texas Instruments Inc., Samsung Electronics Co., Sony Semiconductor Solutions Corp and Yangzhou Yangjie Electronic Technology Co. among its members, according to its website.