The global semiconductor manufacturing outlook shows a rebound in the fourth quarter of 2023, setting the stage for continued growth in 2024. The forecast comes from the Q3 2023 Semiconductor Manufacturing Monitor (SMM) report produced by SEMI in conjunction with TechInsights. Following a 7% increase in the third quarter of 2023, electronics sales are expected to grow by a whopping 22% in the fourth quarter of 2023 compared to the previous quarter. Integrated circuit (IC) sales are also expected to increase 4% sequentially from a 7% increase in the third quarter as demand rises and inventory levels stabilise. However, key semiconductor manufacturing indicators show continued weakness. Manufacturing plant utilisation and capital investment trended lower in the second half of the year. Overall, spending on non-memory components is expected to outpace memory spending in 2023, despite signs of declining investment in the non-memory space. total capex in Q4 2023 is expected to be in line with Q4 2020 figures. Notably, while overall sales of semiconductor capital equipment declined in line with capital spending, the decline in spending on wafer fabrication equipment was not as pronounced as forecast earlier this year. In addition, billings for back-end equipment are expected to see an uptick in the fourth quarter of 2023. While the semiconductor market has seen year-over-year declines over the past five quarters, year-over-year growth is expected to resume in the fourth quarter of 2023 as production cuts come into play as they work their way through the supply chain," said Boris Metodiev, director of market analysis at TechInsights. On the other hand, front-end equipment sales, driven by government incentives and backlog filling, have performed much better than the IC market and are expected to remain strong next year."
The global semiconductor manufacturing outlook shows a rebound in the fourth quarter of 2023, setting the stage for continued growth in 2024. The forecast comes from the Q3 2023 Semiconductor Manufacturing Monitor (SMM) report produced by SEMI in conjunction with TechInsights. Following a 7% increase in the third quarter of 2023, electronics sales are expected to grow by a whopping 22% in the fourth quarter of 2023 compared to the previous quarter. Integrated circuit (IC) sales are also expected to increase 4% sequentially from a 7% increase in the third quarter as demand rises and inventory levels stabilise. However, key semiconductor manufacturing indicators show continued weakness. Manufacturing plant utilisation and capital investment trended lower in the second half of the year. Overall, spending on non-memory components is expected to outpace memory spending in 2023, despite signs of declining investment in the non-memory space. total capex in Q4 2023 is expected to be in line with Q4 2020 figures. Notably, while overall sales of semiconductor capital equipment declined in line with capital spending, the decline in spending on wafer fabrication equipment was not as pronounced as forecast earlier this year. In addition, billings for back-end equipment are expected to see an uptick in the fourth quarter of 2023. While the semiconductor market has seen year-over-year declines over the past five quarters, year-over-year growth is expected to resume in the fourth quarter of 2023 as production cuts come into play as they work their way through the supply chain," said Boris Metodiev, director of market analysis at TechInsights. On the other hand, front-end equipment sales, driven by government incentives and backlog filling, have performed much better than the IC market and are expected to remain strong next year."
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