Longer-term, global chip sales are expected to surpass $1 trillion by the end of this decade. Demand is soaring as developments in everything from household appliances to autos to data centers increase the need for various microchips and electronic components.
Why are chip manufacturers spending so much money?
Chip manufacturers with fabrication plants (known as “fabs”) are spending billions to ramp up production in anticipation of this demand. Legislation like the U.S. CHIPS Act and the European Chips Act will provide tens of billions of dollars worth of funding to bolster these fabs.
Will chipmakers lose 12% in 2023 compared to 2022?
Of course, many stocks in the sector are still reeling from troubles during the past fiscal year, and IDC expects overall 2023 revenue for chipmakers to drop about 12% globally compared with 2022.
