The global semiconductor market in the second quarter of 2022 continued its decline for the third consecutive quarter, marking the second quarter with the third-worst performance over the past 20 years.

According to Omdia's Competitive Landscape Tracker, the semiconductor market in the second quarter of 2022 recorded revenue decline for the third consecutive quarter and is currently analyzed as showing a downward trend.

Revenue in the second quarter of 2022 decreased by 1.9% from 161.2 billion dollars (approximately 225 trillion won in Korean won) in the first quarter of 2022 to 151.8 billion dollars (approximately 212 trillion won in Korean won).

This decline follows the longest sustained period of eight consecutive quarters of semiconductor growth.

Cliff Leimbach, Senior Research Analyst at Omdia, stated, "As a result of recent semiconductor revenue decline, the second quarter of 2022 has been recorded as the third-worst performing second quarter during the past 20 years that Omdia has tracked the market. New changes are occurring as demand has increased unprecedentedly due to remote work and home-based educational activities. Considering the cyclical nature of the semiconductor market, the remainder of 2022 and the first half of 2023 are expected to be adjustment periods in which the market normalizes."

The factors contributing to the current decline in semiconductor revenue are Intel's second quarter 2022 results and a 13% decrease in MPU (microprocessor) division revenue in the first quarter.

Since the microprocessor market accounts for more than 10% of the overall semiconductor market, this decline resulted in the overall market contracting.

Additionally, from the first quarter of 2022 to the second quarter of 2022, the U.S. dollar showed strength against multiple foreign currencies.

Companies reporting revenues in foreign currencies experienced declining revenues when converting to U.S. dollars. Some non-U.S.-based companies experienced increased quarterly revenues on a local currency basis but negative growth on a U.S. dollar basis. All of these factors combined exerted a downward impact on total semiconductor market revenues converted to U.S. dollars.

Looking at the performance of leading semiconductor companies, the combined decline for Intel and NVIDIA totaled 3.7 billion dollars (approximately 5 trillion won in Korean won) in the second quarter of 2022.

This is a result of reduced consumer demand for products during uncertain times and difficulties in OEM inventory securing.

Among the top 10 companies, Qualcomm is the only company whose second quarter 2022 revenue declined. The remaining companies saw revenue increases in the second quarter.

The memory market showed a slight increase, rising just over 1% in the second quarter.

Samsung, the leading DRAM and NAND company, solidified its position as the highest revenue semiconductor company when combined with Intel's performance.