Q3 Wafer Shipments Experience 9.6% Decline Quarter-on-Quarter

Q3 wafer shipments for semiconductor applications experienced a significant decline of 9.6% quarter-on-quarter, dropping to 3,010 million square inches. This represents a 19.5% decrease compared to the 3,741 million square inches recorded in Q3 2022, according to SEMI, the global industry association representing the electronics manufacturing supply chain.

The decline in global silicon shipments can be attributed to the ongoing broad-based inventory correction cycle. Anna-Riikka Vuorikari-Antikainen, Chairman of SEMI Silicon Manufacturing Group, stated, "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. However, the automotive and industrial sectors remained resilient during this period."

The data, sourced from SEMI, highlights the millions of square inches of wafer shipments in Q3. It is evident that the computing, communications, consumer, and memory markets were the most affected, while the automotive and industrial sectors demonstrated resilience.

SEMI's data includes various types of silicon wafers, such as polished silicon wafers used as virgin test wafers, epitaxial silicon wafers, and non-polished silicon wafers shipped by manufacturers to end users. This comprehensive approach ensures a holistic view of the industry's performance.

As the global semiconductor industry navigates through the ongoing inventory correction cycle, it is crucial to monitor the trends and shifts in demand across different sectors. The decline in wafer shipments for certain markets reflects the softening demand and economic uncertainties faced by the industry. However, the resilience of the automotive and industrial sectors provides a glimmer of hope amidst these challenges.