Analyst firm IC Insights said in its forecast that the global chip market is expected to recover in the second quarter of next year. The company said the market will contract by 9% in the third quarter of this year and by a further 8% and 3% in the first quarter of 2023.
IC Insights said that after the market bottomed in the first quarter, it is expected to start a correction in the second quarter of next year. In its history, the global chip market has only contracted six times in three consecutive quarters since the 1970s, the analyst firm said.
These periods are 1981, 1985, 1996, 1997-1998, and 2001. In all of these cases, the market rebounded after three straight quarters of contraction.
The sixth issue is from 2018 to 2019. The market fell 9% in the fourth quarter of 2018 and fell another 17% in the following quarter. After another 1% drop in the second quarter of 2019, the market started to recover in the third quarter.
Furthermore, the global chip market is expected to contract by 3% year-on-year in 2023, although the market is expected to grow again in the second quarter of next year.