The semiconductor industry contraction is expected to moderate in Q2 to be followed by a gradual recovery starting in Q3, says SEMI.

The forecast comes in SEMI’s Semiconductor Manufacturing Monitor (SMM) Report, prepared in partnership with TechInsights.

In Q2, industry indicators, including IC sales and silicon shipments,  point to q-o-q improvements.

Elevated inventories continue to dampen shipments and utilisation rates remain significantly lower than levels registered last year.

 

In addition, semiconductor equipment sales continue to decline in parallel with capital expenditure adjustments by major industry stakeholders..

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The Semiconductor Manufacturing Monitor (SMM) report is based on industry indicators including capital equipment, fab capacity, and semiconductor and electronics sales, and includes a capital equipment market forecast.

The SMM report also contains two years of quarterly data and a one-quarter outlook for the semiconductor manufacturing supply chain including leading IDM, fabless, foundry, and OSAT companies.