YG PRESS NEWS – Semiconductor test equipment market: Q2 2023 reveals lowest point, but recovery signals optimism

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Following a slow start to 2023, there is now an upturn in orders for test equipment, driven by the recovery of equipment utilization rates.

  • Q2 2023 saw semiconductor test equipment demand hit a three-year low at US$1,908 million, straining the supply chain, especially affecting Japanese and Chinese suppliers.
  • Recovery is in progress, with increased activity reported by both buyers and suppliers, though new equipment orders vary with some taking a cautious approach.
  • The outlook for 2023 predicts a 14% decrease from 2022, but 2024 and 2025 show potential for high single-digit growth, driven by advanced logic and power device testing, despite ongoing challenges in the Chinese market and memory sector.

According to Yole Intelligence, part of Yole group, in the Semiconductor Test Equipment Market Monitor, in Q2 2023, the demand for semiconductor testing equipment hit its lowest point, recording sales of US$1,908 million. It had been over three years since quarterly sales had fallen below this level, and this sharp decline has created significant pressure across the entire supply chain. Japanese and Chinese suppliers have felt the greatest impact due to sluggish memory markets and an oversaturated Chinese domestic market.

However, there is a silver lining as a recovery is currently in progress. Both buyers and suppliers are reporting a notable uptick in activity. In this early phase, orders for new equipment are somewhat uneven, with some chip manufacturers placing substantial orders, while others are taking a cautious approach, waiting before committing to capital investments. The demand for test equipment for advanced logic and power devices is driving this resurgence, although the ongoing weakness in China and a couple of major memory manufacturers is tempering overall growth.

Looking ahead to 2023, there is an expected 14% decline compared to 2022, but there is optimism for high single-digit growth in 2024 and 2025… For more information about this analysis, please contact us!

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