The semiconductor industry is expected to fall into recession next year

The semiconductor sector fell across the board, with Contron (01912) down 5%, Shanghai Fudan (01385) down 3.78%, Huahong Semiconductor (01347) down 3.07%, Grand Light Semiconductor (06908) down 2.5%, SMIC (00981) down 2.15%, and Crystal Gate Semiconductor (02878) down 1.85%.

Research institute Gartner released the latest report pointed out that the global semiconductor industry has ever been the most successful cycle is coming to an end, is expected this year, the global semiconductor industry revenue growth rate of only 7.4%, a total amount of about 639.2 billion US dollars, the growth rate than three months ago forecast 14% nearly half, less than 26% in 2021.

Gartner predicts that the global semiconductor market will fall into recession next year, mainly due to weak sales of mobile phones and personal computers. This means that from wafer foundries to IC designers, there is no escaping the fate of the economic correction. However, the agency also said that data center semiconductor demand is still strong, automotive semiconductor demand will also be a bright spot, in addition, the supply of chips needed in the field of 5G equipment is still tight.