FILE PHOTO: Semiconductor chips are seen on a printed circuit board in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
PETALING JAYA: The semiconductor manufacturing sector is poised for a rebound in the fourth quarter of 2023, paving the way for sustained growth in 2024, according to US-based Semiconductor Equipment Manufacturers Industry (SEMI).
Electronic sales are predicted to register a robust 22% quarter-over-quarter increase in Q4 2023, adding to 7% growth posted in 3Q23, SEMI announced in its 3Q23 Semiconductor Manufacturing Monitor (SMM) Report, prepared in partnership with TechInsights.
Integrated circuit (IC) sales are expected to rise 4% sequentially after improving 7% in 3Q23 as end demand improves and inventories normalise.
“Despite the improvement in electronics and IC sales, semiconductor manufacturing indicators remain soft. Fab utilisation rates and capital expenditures continue to decline in the second half of this year.
“Overall, Capex on non-memory is expected to outperform memory in 2023, but even spending in the non-memory segments has begun to weaken. Total capital expenditures in 4Q23 are hovering at the levels seen in 4Q20,” SEMI said.
It noted that while overall semiconductor capital equipment sales are declining in line with capital expenditures, the contraction in wafer fab equipment spending has turned out to be much shallower than expected this year. Furthermore, back-end equipment billings are projected to increase in 4Q23.
