IDC: Global semiconductor packaging and testing market is expected to decrease by 13.3% in 2023

July 26, 2023 /SemiMedia/ — In response to the most recent IDC report, the worldwide semiconductor packaging and testing market reached $44.5 billion in 2022, with an annual development charge of 5.1%. Affected by stock changes, it's estimated that the worldwide packaging and testing market will lower by 13.3% yearly in 2023.

IDC believes that the sharp drop in demand for shopper electronics, the decline in demand for cloud servers for non-AI functions, and the truth that the semiconductor business remains to be within the destocking stage are the explanations for the shrinking market.

The report exhibits that the capability utilization charge of most packaging and testing vegetation within the first half of the yr was 50%-65%. With the restoration of inventory-adjusted demand, it's anticipated to rise to 60%-75% within the second half of the yr. Some pressing orders from superior packaging can enhance capability utilization to 80%, however there may be nonetheless a niche from 70%-85% in 2022.