Semiconductor Server Outlook For 2023

A Low Growth Year Lies Ahead

2022 has seen remarkable growth in server unit shipments of around 15% YoY. A recent call with the Investor Relations team of a Taiwanese company critical to the server supply chain corroborates our view that unit shipments will decline meaningfully in Q1 2023, most likely extending to the second quarter. This will add a further headwind to Micron’s next quarter forecast, due tomorrow (22/12) APAC time. For 2023 as a whole, we expect to see server unit shipments revert to a more reasonable 6% growth, heavily weighted towards the second half.