UPDATED. 2022-12-01 10:00 (목)
IC Insights expect chip market to recover in Q2 next year
IC Insights expect chip market to recover in Q2 next year
  • Kang sung tae
  • 승인 2022.11.11 17:59
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Based on the history that there have never been four consecutive quarters of contraction
Image: IC Insights
Image: IC Insights

The global chip market is expected to recover in the second quarter of next year, analysts firm IC Insights said in its forecast.

The firm said the market will contract by 9% during the third quarter of this year and will further contract by 8% and then by 3% again in the first quarter of 2023.

After hitting bottom in the first quarter, the market is expected to start recovering in the following quarter next year, IC Insights said.

The analyst firm said the global chip market had, in its history, only contracted for three straight quarters six times since the 1970s.

These periods were 1981, 1985, 1996, 1997 to 1998, and in 2001.

On all these occasions, the market bounced back after three consecutive quarters of contraction.

The sixth period was between 2018 and 2019. The market contracted by 9% during the fourth quarter of 2018 and another steep 17% in the following quarter. After another drop of 1% in the second quarter of 2019, the market recovered in the third quarter.

There was uncertainty, however, which is the trade war between the US and China.

Also, though the market is expected to grow again during the second quarter of next year, on an annual basis the global chip market is expected to contract by 3% in 2023 from a year ago.


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