Global shipments of silicon wafers are projected to decline 14% in 2023, to 12,512 million square inches (MSI) from the record high of 14,565 MSI in 2022 before bouncing back in 2024 as wafer and semiconductor demand recovers and inventory levels normalize, SEMI reported today in its annual silicon shipment forecast. Continuing softness in demand for semiconductors and challenging macroeconomic conditions are driving the 2023 decline.
Momentum from the 2024 rebound is expected to continue through 2026, with wafer shipments setting new highs as silicon demand increases to support artificial intelligence (AI), high-performance computing (HPC), 5G, automotive and industrial applications.
Silicon wafers are the fundamental building material for the majority of semiconductors, which are vital components of all electronic devices. The highly engineered thin disks are produced in diameters of up to 12 inches and serve as the substrate material on which most semiconductor devices, or chips, are fabricated.
All data cited by SEMI is inclusive of polished silicon wafers and epitaxial silicon wafers shipped by wafer manufacturers to end users. The data does not include non-polished or reclaimed wafers.
Decline in Q3 2023
Worldwide silicon wafer shipments decreased 9.6% quarter-over-quarter to 3,010 million square inches in the third quarter of 2023, a 19.5% drop from the 3,741 million square inches recorded during the same quarter last year, the SEMI Silicon Manufacturers Group (SMG) reported in its quarterly analysis of the silicon wafer industry.
“The decline in global silicon shipments continued as a result of the ongoing broad-based inventory correction cycle,” said Anna-Riikka Vuorikari-Antikainen, Chairman of SEMI SMG and Chief Commercial Officer at Okmetic. “Silicon wafer shipments for the computing, communications, consumer and memory markets saw the most pronounced declines due to a softening in demand and continuing economic uncertainties, while the automotive and industrial sectors were resilient during this period.”
The SMG is a sub-committee of the SEMI Electronic Materials Group (EMG) and is open to SEMI members involved in manufacturing polycrystalline silicon, monocrystalline silicon or silicon wafers (e.g., as cut, polished, epi). The SMG facilitates collective efforts on issues related to the silicon industry including the development of market information and statistics about the silicon industry and the semiconductor market.
