Semiconductor Equipment Downturn Will Continue Through H1 2024

Jan. 29, 2024 9:28 AM ET, , , , , , , , , 14 Comments
Robert Castellano
17.7K Followers

Summary

  • Semiconductor equipment revenues decreased less than expected in 2023, as a memory downturn pushed 2022 sales into 2023.
  • Imports of equipment used in chip production in China surged by 14% in 2023, reaching nearly $40 billion, pulling in sales from 2024.
  • I estimate the WFE semiconductor equipment market will increase by 1% in 2024. Growth will be negative in the first half followed by an uptick in the second half.

Conceptual Finance or Business Chart

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I first wrote about a possible semiconductor equipment downturn in a June 24, 2021 Seeking Alpha article entitled "Applied Materials: Tracking A Likely Semiconductor Equipment Meltdown In 2023."

In the 31 months since I wrote that article, there have been significant

This free article presents my analysis of this semiconductor equipment sector. A more detailed analysis is available on my Marketplace newsletter site Semiconductor Deep Dive. You can learn more about it here and start a risk-free 2-week trial now.

This article was written by

17.7K Followers
Robert Castellano has 38 years of experience analyzing the semiconductor markets. He runs the investing group Semiconductor Deep Dive. It provides investors with recommendations for stocks with the greatest near- and medium-term growth potential. Members receive detailed analysis and research tools to make investments in semiconductor and tech stocks. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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