The second quarter of 2022 further weakens the semiconductor market revenue growth, making it the longest-sustained growth in eight quarters.
While $161.2 billion in revenue was generated in 1Q22, only $158.1 billion was produced in 2Q22, resulting in a decline of 1.9%. According to the senior research analyst at Omdia, Cliff Leimbach, 2Q22 is recorded as the third worst performing Q2 in the twenty-year history of Omdia tracking the market. The cause is the unusual growth in demand for work-from-home and study-at-home activity. However, the rest of 2022 and the first quarter of 2023 is predicted to be the adjustment period, where the semiconductor industry market will return to normalcy.
Companies affecting the revenue growth
Intel’s 13% decline in 2Q22, in their microprocessors business in 1Q represents 10% of the overall revenue decline. This decline brought down the entire semiconductor market growth. Other top-ten firms that saw a decline were NVIDIA and Qualcomm, while the rest of the firms saw slight growth during the quarter. The decline was majorly caused by a shrink in the consumer demand for products from their firms.
As the number one DRAM and NAND firm, Samsung became the top semiconductor firm by revenue. Confirming this was Intel’s result on the charts in Q2. Overall, the memory market grew only 1% in 2Q.
The dollar angle
When reporting revenue, many firms convert the currency to US dollars. And, as the worth of US dollars increased against several other currencies, in 2Q22 from 1Q22, companies saw a fall in revenue. Even when the non-US-based companies saw a quarter increase in local currency, the increase from a US perspective remained negative.