Multiple factors drag down the Q2 semiconductor market

Semiconductor market revenue declined in the second quarter of 2022, making it the third-worst second-quarter performance for the market in 20 years. The "stay-at-home economy" such as work-from-home and online classes led to an unprecedented increase in demand before the quarterly revenue decline. Considering the cyclical nature of the semiconductor market, it is expected that the semiconductor market will return to normal after adjustment for the rest of 2022 and the first half of 2023.

 

One factor contributing to the current decline in the semiconductor market is Intel's second-quarter 2022 results and a 13% decline in the company's microprocessor (MPU) business in the first quarter. The size of the MPU market accounts for more than 10% of the entire semiconductor market, so the sharp decline in this market has dragged down the overall market performance.

 

Companies reporting revenue in other currencies saw revenue decline when converting data to U.S. dollars, as the U.S. dollar began to strengthen in the second quarter of 2022. Some non-U.S. companies reported quarterly revenue growth in local currencies but negative growth in U.S. dollar terms. The combination of these factors has had a downward impact on the total semiconductor market revenue in dollar terms.