Gartner Research

Forecast Analysis: Semiconductor Foundry Services, Worldwide, 1Q23 Update

Published: 04 May 2023


After two years of over 30% annual growth, foundry revenue is projected to decline by 6.2% in 2023 as wafer demand drops while chip inventory remains high. A market recovery projected to start by 3Q23 will drive the foundry revenue to grow by 12.4% in 2024.

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Forecast Assumptions
  • A weak market for electronic equipment will cause nonmemory semiconductor device revenue to decline by 3.6% in 2023, followed by 7.7% growth in 2024.

  • Foundry capital expenditure (capex) will be reduced by 9.5% to $57.8 billion in 2023 and by 6.6% in 2024, down to $54.0 billion.

  • While foundries will defend a firm pricing strategy in the down market, some discounts will be offered to volume customers. The blended average selling price (ASP) of wafers will increase by 1.0% in 2023, followed by 1.9% decline in 2024.

Market Impacts
  • Facing a steep business downturn in 2023, most foundries are adopting more

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Samuel Wang

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