Worldwide semiconductor revenue in 2023 totaled $533-billion, a decrease of 11,1% from 2022, according to preliminary results by Gartner.
“While the cyclicality in the semiconductor industry was present again in 2023, the market suffered a difficult year with memory revenue recording one of its worst declines in history,” says Alan Priestley, vice-president analyst at Gartner. “The underperforming market also negatively impacted several semiconductor vendors. Only nine of the top 25 semiconductor vendors posted revenue growth in 2023, with 10 experiencing double-digit declines.”
The combined semiconductor revenue of the top 25 semiconductor vendors declined 14,1% in 2023, accounting for 74,4% of the market, down from 77,2% in 2022.
Following the underperformance of memory vendors in 2023, the ranking of the top 10 semiconductor vendors changed year-over-year.
* Intel reclaimed the number one spot from Samsung, after two years in the number two position. Intel’s 2023 revenue totaled $48,7-billion while Samsung’s revenue reached $39,9-billion.
* Nvidia’s 2023 semiconductor revenue grew 56,4% to total $24-billion, propelling the company into the top five for the first time ever. This is due to its leading position in the artificial intelligence (AI) silicon market.
* STMicroelectronics moved up three slots to secure the number eight spot – the same position it held in 2019. Its revenue increased 7,7% in 2023, largely driven by a strong position in the automotive segment.
Top 10 Semiconductor Vendors by Revenue, Worldwide, 2023 (Billions of US Dollars)
| 2023 Rank | 2022 Rank | Vendor | 2023 Revenue | 2023 Market Share (%) | 2022 Revenue | 2023-2022 Growth (%) |
| 1 | 2 | Intel | 48.664 | 9.1 | 58.436 | -16.7 |
| 2 | 1 | Samsung Electronics | 39.905 | 7.5 | 63.823 | -37.5 |
| 3 | 3 | Qualcomm | 29.015 | 5.4 | 34.780 | -16.6 |
| 4 | 6 | Broadcom | 25.585 | 4.8 | 23.868 | 7.2 |
| 5 | 12 | NVIDIA | 23.983 | 4.5 | 15.331 | 56.4 |
| 6 | 4 | SK Hynix | 22.756 | 4.3 | 33.505 | -32.1 |
| 7 | 7 | AMD | 22.305 | 4.2 | 23.620 | -5.6 |
| 8 | 11 | STMicroelectronics | 17.057 | 3.2 | 15.842 | 7.7 |
| 9 | 9 | Apple | 17.050 | 3.2 | 18.099 | -5.8 |
| 10 | 8 | Texas Instruments | 16.537 | 3.1 | 18.844 | -12.2 |
| Others (outside top 10) | 268.853 | 50.7 | 294.729 | -8.8 | ||
| Total Market | 533.025 | 100.0 | 599.562 | -11.1 |
Source: Gartner (January 2024)
Memory Revenue Declined 37% in 2023
Revenue for memory products declined 37% in 2023, experiencing the biggest decline of all the segments in the semiconductor market. “Smartphones, PCs and servers, three of the largest segments for DRAM and NAND, faced weaker than expected demand and excess channel inventory, especially in the first half of 2023,” says Joe Unsworth, vice-president analyst at Gartner.
In 2023, DRAM revenue declined 38,5% to total $48,4-billion and NAND flash revenue decreased from 37,5% to $36,2-billion.
Non-memory Revenue Declined 3% in 2023
Nonmemory revenue fared better and declined 3% in 2023. The market witnessed weaker demand and excess channel inventory negatively impacted the segment throughout the year.
“Unlike the memory vendors, most non-memory vendors experienced a relatively benign pricing environment in 2023,” says Unsworth. “The demand for non-memory semiconductors for AI applications was the strongest growth driver, with the automotive sector (especially electric vehicles), defense and aerospace industries, also outperforming most other application segments.”