Gartner forecasts chip sales growth to slow down in 2022, fall next year

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Gartner forecasts chip sales growth to slow down in 2022, fall next year

IT research firm Gartner said on Wednesday it expects global semiconductor sales growth to slow down in 2022 and fall 2.5 per cent next year, hurt by weak sales of mobile phones and personal computers.

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Rising inflation, and higher energy and fuel costs are putting pressure on consumer disposable income, affecting spending on electronic products such as PCs and smartphones, the research firm said.

It forecast global semiconductor revenue to grow 7.4 per cent in 2022 to $639.2 billion, down from its previous view of 13.6 per cent growth, and compared with growth of 26.3 per cent last year.

For next year, Gartner expects chip revenue to contract to $623.1 billion.

"It could easily be a lot worse than that, but it will probably bottom out next year and then start to recover in 2024," Richard Gordon, vice president at Gartner, said in an interview.

Higher demand for smartphones and PCs during the pandemic overwhelmed chip factories, leading to shortages in other industries, increasing prices and delaying production.

However, mobile phone shipments in 2022 are now expected to fall to 1.46 billion units from 1.57 billion.