According to WSTS, the semiconductor market declined by 0.8% in the second quarter of 2022 compared to the first quarter of 2022. The 0.5% sequential decline in the first quarter of 2022 follows a decline in the second quarter of 2022.

Revenues for the top 15 semiconductor suppliers in the second quarter of 2022 were in line with the overall market results, down 1 percent from the first quarter of 2022.

The companies' results were mixed. Memory suppliers SK Hynix and Micron Technology reported revenue growth of 13.6 percent and 11.0 percent, respectively, for the second quarter of 2022. AMD's revenue grew 11.3 percent, primarily due to its acquisition of Xilinx. the worst performers were NVIDIA, down 19 percent due to weakness in its gaming business, and Intel, down 16.5 percent due to weakness in the PC market.

SI said the outlook for the third quarter of 2022 is also mixed. The strongest growth comes from companies that primarily provide analog ICs and discrete devices.

ST has the highest expectations, with its revenue guidance for the third quarter of 2022 up 10.5% from the second quarter of 2022. ST cites strong overall demand, especially in the automotive and industrial segments.

Infineon Technologies, NXP Semiconductors and ADI also cite projected revenue growth in the automotive and/or industrial segments for the third quarter of 2022.

ADI's revenues exceeded $3 billion for the first time in the second quarter of 2022 (mainly due to the acquisition of Maxim Integrated Products last year) and made it to our list of top semiconductor companies.

MediaTek and Texas Instruments cited weakness in the PC and smartphone markets as a major factor in the expected revenue decline in the third quarter of 2022. NVIDIA cited continued weakness in its gaming business, which is expected to decline 12 percent. the largest revenue decline in the third quarter of 2022 will come from memory companies.

Micron Technology shares fell 21 percent. Samsung did not provide specific revenue guidance, but Dr. Kye Hyun Kyung, head of Samsung's semiconductor business, said the second half of 2022 "looks bad.

The weakness in the smartphone and PC markets is reflected in recent forecasts from IDC. Smartphone shipments are expected to decline 7 percent in 2022, following 6 percent growth in 2021.

Smartphones are expected to return to 5 percent growth in 2023. PCs are expected to grow 13 percent in 2020 and 15 percent in 2021 due to the COVID-19 pandemic, and are expected to decline 13 percent in 2022 and 3 percent in 2023.

Automotive remains healthy, with LMC Automotive expecting light vehicle production to grow 6.0 percent in 2022 and 4.9 percent in 2023.

The global economic outlook is another factor in the slowing semiconductor market.

Recent forecasts for global GDP growth in 2022 range from 2.7 percent to 3.2 percent. The percentage point decline (or deceleration) from 2021 growth ranges from 2.9 percentage points to 3.3 percentage points.

The SI model predicts that a 3 percentage point slowdown in GDP growth will result in a 16 percentage point slowdown in semiconductor market growth.

SI's current forecast of 5% semiconductor growth in 2022 is 21 percentage points slower than the 26% growth in 2021. Global GDP growth is expected to continue to decelerate by 0.3 to 1.0 percentage points in 2023. However, a global recession is still a possibility. The Bloomberg survey shows that the probability of a recession in the next 12 months is 48% in the U.S. and 80% in the eurozone.

SI's forecast of 5.0% growth in the semiconductor market in 2022 is the lowest of recent public forecasts.

Other recent forecasts for semiconductor market growth in 2022 range from 6% (Future Horizons) to 13.9% (WSTS).

The semiconductor market is likely to experience at least five consecutive quarter-over-quarter declines from the first quarter of 2022 through the first quarter of 2023.

If the global economy is not weaker than currently expected, the semiconductor market should recover moderately in the second half of 2023.

However, quarterly trends will drive the market against 2023.

SI forecasts a 6.0 percent decline in 2023. future Horizons is the most pessimistic, with its August forecast of a 22 percent decline in 2023. gartner forecasts a 2.5 percent decline. idc and WSTS expect growth in 2023, but at a slower rate than in 2022: idc's expectation is for a 6.0 percent decline, and WSTS for 4.6 percent.

After 2023, the semiconductor market should stabilize toward typical trends. The COVID-19-related outages and resulting supply chain disruptions will be mostly resolved.

Traditional markets driving smartphones and personal computers should return to normal growth. Emerging applications such as automotive and IoT will become increasingly important as market drivers.

Omdia: The semiconductor market is slowing at an accelerating pace

Omdia's "Semiconductor Market Competitive Landscape Tracker" report shows that semiconductor market revenue declined for the first time in the second quarter of 2022, with further weak growth. semiconductor market revenue in the second quarter of 2022 was $158.1 billion, down from $161.2 billion in the first quarter of 2022 1.9%. Prior to this, the semiconductor industry had grown for eight consecutive quarters, marking the longest continuous growth streak ever.

The semiconductor market's revenue decline in the second quarter of 2022 makes it the third-lowest second-quarter performance in the 20 years Omdia has been tracking the market," said Cliff Leimbach, senior research analyst at Omdia. The quarterly revenue decline comes on the heels of unprecedented growth in demand due to the 'home economy' such as work-at-home and online classes. Given the cyclical nature of the semiconductor market, we expect it to return to normal after adjustments for the remainder of 2022 and the first half of 2023.

One factor contributing to the current semiconductor market decline is Intel's second quarter 2022 results and a 13% decline in the company's microprocessor (MPU) business in the first quarter. the size of the MPU market accounts for more than 10% of the overall semiconductor market, so the significant decline in this market dragged down the overall market performance.

In addition, companies reporting revenue in other currencies experienced a decline in revenue when converting information to U.S. dollars, impacted by the beginning of a stronger U.S. dollar in the second quarter of 2022. Some non-U.S. companies experienced growth in quarterly revenue in local currency, but negative growth in U.S. dollar terms. All of these factors combined to have a downward impact on total semiconductor market revenue in U.S. dollar terms.

Some people are happy and some are sad among the top 10 manufacturers

Among the top 10 semiconductor companies, Intel and Nvidia reported a combined decrease in revenue of $3.7 billion in the second quarter of 2022; this was driven by weak consumer demand and an uncertain outlook for OEMs to reduce inventory levels. In addition to these two companies, the only one of the top 10 semiconductor companies to see a decline in revenue in the second quarter was Qualcomm, with the rest of the companies reporting revenue growth in the quarter.

For the memory market, the second quarter grew slightly, up slightly more than 1 percent. As the world's largest DRAM and NAND maker, the memory market growth and Intel's decline combined to keep Samsung on the top semiconductor company's revenue throne.