Five key areas of semiconductor market that must be paid attention to in 2023

     In the third quarter of 2022, devices supporting 5G accounted for 24% of the total shipments of networked PCs and tablets, compared with only 2% a year ago. In the third quarter of 2022, the overall networked PC increased by 4%, but the penetration rate of 5G on PC increased. In 2023, with the improvement of 5G infrastructure, the expansion of equipment supply by suppliers and the increase of operator support, this trend will accelerate.

    Leading PC vendors have now entered this field. At the same time, Intel Corporation, MediaTek and Qualcomm have paid more and more attention to 5G devices and helped develop a roadmap for designing and marketing 5G devices. In 2022, operators significantly expanded 5G products. AT&T and Verizon now sell 5G connected laptops and tablets in the United States. Continued adoption of operators in 2023 will be a key factor in the growth of networked PCs.

 

     The emergence of remote and hybrid work will createle connection option. Employers will seek solutions to the security threats posed by public and insecure Wi-Fi networks.

    2022 is a tough year for 5G. The macroeconomic headwind and inflation conditions led to the shift of consumer demand from 5G to more practical smart phones, such as battery life, storage, processor speed and camera quality. In addition, 5G deployment has stalled, and many operators are carrying out structural changes aimed at expanding their user base and maintaining financial stability, rather than deploying 5G.

     2023 will be different. The overall macroeconomic situation is expected to improve and the global economy is expected to recover. Network operators will be more active than ever, whether to promote 5G deployment or expand 5G user base. Smart phone manufacturers such as Samsung Mobile and Apple are expected to take the lead in launching devices that support 5G.

    The average selling price of 5G equipment is expected to decline, bringing 5G to the public, which is the core driver of price-sensitive developing regions.

    The above proportion will continue to rise from about 10% in 2022, and it will rise significantly compared with 2% in 2020. The transformation of Apple‘s own chips has driven this growth. It is expected that in 2023, it will continue to account for the majority of shipments based on ARM.

    However, Canalys expects that the architecture will accelerate its success on Windows devices from next year. Recent devices from Lenovo and HP help highlight the advantages of ARM-based PCs, including better battery life, 5G/LTE option and slim design. These functions are consistent with the use behavior of consumers after the pandemic, because they use laptops more frequently, for a longer time, and in more diverse places.

    With Microsoft and Qualcomm also significantly improving the user experience and application compatibility of ARM for Windows, it has now provided conditions for more PC vendors to join and expand their products. CES 2023 is an opportunity. With the increasing economic uncertainty, the market will usher in a difficult year. It will promote the information transmission of ARM-based PCs and stimulate the enthusiasm of consumers.

    Despite the worsening global economy, the Asia-Pacific region is still expected to achieve growth in 2023. The two fastest growing major economies in the Asia-Pacific region are currently ASEAN and India. Historically, China is the fastest growing country, but its growth has been slowing down. Since the outbreak of COVID-19, the economy has faced some challenges. This gives other economies the opportunity to surpass and become the economies that promote the development of the Asia-Pacific region.

    Bureaucracy, infrastructure and climate change will still face challenges. Building India requires time, effort and resources. However, there are many positive trends in India: the government is paying great attention to the manufacturing industry, the number of highly skilled and young workers is growing, digitization is at the highest level in history, many foreign entities are providing funds to India, and the investment in India will not stop soon.

    Sustainability and the promotion of circular economy will be the key themes proposed by automotive OEMs at the Consumer Electronics Show in 2023. More and more consumers will look for recyclable materials and zero emissions in their next car. Despite the worsening global economy, the Asia-Pacific region is still expected to achieve growth in 2023. The two fastest growing major economies in the Asia-Pacific region are currently ASEAN and India. Historically, China is the fastest growing country, but its growth has been slowing down. Since the outbreak of COVID-19, the economy has faced some challenges. This gives other economies the opportunity to surpass and become the economies that promote the development of the Asia-Pacific region.

    The automobile industry must maintain as many vehicle raw materials as possible beyond the average life of 12 to 15 years. This is a challenge that the industry has been facing for many years. OEM and supply chain have set goals to achieve 100% sustainable materials in vehicles and meet international recycling standards.

    However, Canalys estimates that there will be more than 1.3 billion cars in the world by the beginning of 2023

    And light commercial vehicles. Therefore, although the increase of recyclable materials, light vehicle structure, new production methods, electrification, software definition and general platform in new vehicles is very important, it will take many years to replace the vehicles currently used that lack all the above functions. Not subject to adverse market conditions.

    According to Canalys, the global light vehicle sales peaked in 2017 and will not even return to the pre-pandemic level in the next three years.