WSTS slightly raised its growth forecast.

WSTS released its latest semiconductor market forecast on November 28.

With results in the second and third quarters of this year slightly better than forecast in the spring, WSTS revised its forecast and expects the global semiconductor market to shrink by single digits in 2023, by 9.4%. However, a strong recovery is expected to follow, with growth expected to be 13.1% in 2024.

The latest market valuation for 2023 is now estimated at $520 billion, down 9.4% from the previous year.

Given its strong performance over the past two quarters, WSTS slightly raised its growth forecast, noting improvements in certain end markets.

Discrete semiconductors, driven primarily by power semiconductors, are expected to grow 5.8% year-on-year in 2023. However, all integrated circuit categories including analog, micro, logic and memory are expected to decline 8.9% from the previous year. While the decline was significant, it was not as pronounced as initially predicted in May 2023.

Only the European market is expected to grow in 2023, at 5.9%. Conversely, the remaining regions are expected to face declines, with the Americas expected to be down 6.1%, Asia Pacific down 14.4% and Japan down 2.0%.

The global semiconductor market is expected to recover in 2024

Looking ahead to 2024, the global semiconductor market will be booming, with expected growth of 13.1% and a valuation of $588 billion. This growth is expected to be driven primarily by the memory segment, which will surge to about $130 billion by 2024, up more than 40% from the previous year.

Most other major segments including discretes, sensors, analog, logic and microdevices are also expected to record single-digit growth rates.

From a regional perspective, all markets will continue to expand in 2024. The Americas and Asia-Pacific regions, in particular, are expected to achieve significant double-digit year-over-year growth.

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