Hardware

Following strong growth through the pandemic as consumers and enterprises purchased new devices, global PC shipments fell by over 15 percent in 2022. A decline of 30 percent was recorded in the first quarter of 2023 – one of the sharpest declines on record and attributed to the slowdown in the global economy. To counter this, PC vendors are expected to focus on software and service provision upgrades while the market recovers, including PC as a service (PCaaS) offerings to mitigate costs.

Data centers are forecast to receive increased investment in 2023. Security and efficiency have been enhanced by the implementation of artificial intelligence (AI), processes that require specialized AI chips. Advanced applications such as 5G, the Internet of Things, and generative AI will benefit from advancements in AI chip technology and the development of both hyperscale and edge data centers – specialized facilities located closer to end-users.

Governments and companies across the entire semiconductor value chain have had to navigate changing demands, supply chain imbalances, and geopolitical factors. As a result, action plans and policies have had to be established in order to protect the supply of chips. Following further growth in 2022, the semiconductor industry must overcome new challenges as it faces a decline in 2023, fueled by a deteriorating global economy and weakening demand from consumer-driven markets.

Smartphones represent a key market for the semiconductor industry, especially as these devices become more advanced and able to support 5G, AI, and immersive technology applications. Servers and data center environments are set to become an even more important opportunity, with graphics processing units being deployed for the training and running of generative AI applications such as ChatGPT, as well as AI-powered quantum simulation.