The report below gives a good overview of the Spring 2023 M&A activity in the Semiconductors & Advanced Materials Industry Sector. In 2023, global macroeconomic and geopolitical factors are beginning to emerge as the predominant factors influencing the semiconductor industry. According to Deloitte, the aggregate market capitalization of the top 10 global semiconductor companies decreased by 34.0% from US$2.9 trillion in November 2021 to US$1.9 trillion in November 2022. Revenue from the worldwide semiconductor market is anticipated to decline by 3.6% year on year in 2023, with the memory sector experiencing a significant decline (Gartner). Additionally, in the first two months of 2023, China's integrated circuit output fell 17.0% as the nation's semiconductor industry battled economic headwinds and growing US trade sanctions (South China Morning Post). According to another article by South China Morning Post, it is predicted that in 2023, the production value of integrated circuits in Taiwan would fall by 5.6% year on year to US$150.5 billion. The semiconductor industry is expected to grow from US$590.0 billion to US$1,065.0 billion from 2021-30 at a CAGR of 6.8%, (McKinsey). McKinsey also expects 70.0% of this growth to be driven by three key industries: automotive, computation & data storage, and wireless. According to KPMG, automotive semiconductor revenues are projected to top $250.0 billion by 2040. The automotive industry is expected to continue its adoption of semiconductor technologies for advanced driver-assistance systems (ADAS), electric vehicles, and connected cars.
Posted by Gunther Hofmann.