Intel Regains Top Spot as Semiconductor Revenue Drops 11% Worldwide in 2023

In 2023, the semiconductor industry saw a significant decline in revenue, mainly driven by a historic drop in memory revenue, with only nine out of the top 25 vendors experiencing growth, while Intel regained its position as the top vendor and Nvidia achieved a milestone with impressive growth in the AI market.

Intel regained its position as the number one semiconductor vendor, surpassing Samsung after two years in the second spot.
Nvidia achieved a significant milestone, with its semiconductor revenue growing by 56.4% and securing a place in the top five vendors for the first time ever.
STMicroelectronics climbed three spots to secure the eighth position, driven by its strong presence in the automotive segment.

In a challenging year for the semiconductor industry, worldwide semiconductor revenue in 2023 saw a significant decrease of 11.1% compared to the previous year, totaling $533 billion, according to Gartner Inc. The decline was mainly driven by a historic drop in memory revenue, making it one of the toughest periods for the memory market. This downturn also had a negative impact on several semiconductor vendors, with only nine out of the top 25 vendors experiencing revenue growth, while ten faced double-digit declines.

The combined revenue of the top 25 semiconductor vendors declined by 14.1% in 2023, accounting for 74.4% of the market, down from 77.2% in 2022. Notably, Intel regained its position as the number one semiconductor vendor, surpassing Samsung after two years in the second spot. Intel’s revenue for 2023 reached $48.7 billion, while Samsung recorded $39.9 billion.

nVidia, known for its dominance in the artificial intelligence (AI) silicon market, achieved a significant milestone in 2023. The company’s semiconductor revenue grew by an impressive 56.4% to reach $24 billion, securing a place in the top five semiconductor vendors for the first time ever.

STMicroelectronics also made a notable move up the ranks, climbing three spots to secure the eighth position, which it had previously held in 2019. The company’s revenue increased by 7.7% in 2023, driven by its strong presence in the automotive segment.

The memory segment experienced the largest decline among all semiconductor market segments in 2023, with revenue for memory products dropping by a staggering 37%. This decline was primarily attributed to weaker-than-expected demand and excess channel inventory for DRAM and NAND flash in smartphones, PCs, and servers during the first half of the year.

DRAM revenue specifically declined by 38.5% to total $48.4 billion, while NAND flash revenue saw a decrease of 37.5% to reach $36.2 billion.

On the other hand, nonmemory revenue fared relatively better, declining by 3% in 2023. The segment faced weaker demand and excess channel inventory throughout the year. However, unlike memory vendors, most non-memory vendors experienced a more favorable pricing environment. The demand for non-memory semiconductors for AI applications emerged as the strongest growth driver, with the automotive sector, particularly electric vehicles, and the defense and aerospace industries outperforming other application segments.

Overall, the semiconductor market faced significant challenges in 2023, with memory revenue taking a major hit. However, certain vendors like Intel and Nvidia managed to navigate these difficulties and achieve notable growth in their respective areas of expertise. As the industry moves forward, it will be interesting to see how these dynamics continue to evolve and shape the semiconductor landscape.

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Background Information

About Intel:

Intel Corporation, a global technology leader, is for its semiconductor innovations that power computing and communication devices worldwide. As a pioneer in microprocessor technology, Intel has left an indelible mark on the evolution of computing with its processors that drive everything from PCs to data centers and beyond. With a history of advancements, Intel's relentless pursuit of innovation continues to shape the digital landscape, offering solutions that empower businesses and individuals to achieve new levels of productivity and connectivity.

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About nVidia:

NVIDIA has firmly established itself as a leader in the realm of client computing, continuously pushing the boundaries of innovation in graphics and AI technologies. With a deep commitment to enhancing user experiences, NVIDIA's client computing business focuses on delivering solutions that power everything from gaming and creative workloads to enterprise applications. for its GeForce graphics cards, the company has redefined high-performance gaming, setting industry standards for realistic visuals, fluid frame rates, and immersive experiences. Complementing its gaming expertise, NVIDIA's Quadro and NVIDIA RTX graphics cards cater to professionals in design, content creation, and scientific fields, enabling real-time ray tracing and AI-driven workflows that elevate productivity and creativity to unprecedented heights. By seamlessly integrating graphics, AI, and software, NVIDIA continues to shape the landscape of client computing, fostering innovation and immersive interactions in a rapidly evolving digital world.

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About Samsung:

Samsung, a South Korean multinational conglomerate, has established itself as a global leader in various industries, including electronics, technology, and more. Founded in 1938, Samsung's influence spans from smartphones and consumer electronics to semiconductors and home appliances. With a commitment to innovation, Samsung has contributed products like the Galaxy series of smartphones, QLED TVs, and SSDs that have revolutionized the way we live and work.

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Technology Explained

NAND: NAND technology is a type of non-volatile memory that is used in many computer applications. It is a type of flash memory that is used to store data in a non-volatile manner, meaning that the data is not lost when the power is turned off. NAND technology is used in many computer applications, such as solid-state drives, USB flash drives, digital cameras, and memory cards. It is also used in many embedded systems, such as cell phones, tablets, and other consumer electronics. NAND technology is a reliable and cost-effective way to store data, making it a popular choice for many computer applications.