Challenging Operating Environment for the Global Semiconductor Sector in 2023—But no Chipwreck
The tide is turning in the semiconductor sector. Over the next 12 months, we expect moderate declines in revenues, mounting cost pressures, and protracted geopolitical risks. The extent of the decline is, however, mitigated by enterprise demand, which is usually less cyclical, as well as volume growth in the automotive sector. Our credit risk outlook is therefore neutral, reflecting that most issuers possess a healthy liquidity buffer and have sufficient leverage headroom to weather the downturn. We expect limited changes to semiconductor credit profiles in 2023.
DBRS Morningstar is a global credit ratings business with 700 employees in eight offices globally. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.
Together, we are the world’s fourth largest credit ratings agency and a market leader in Canada, the U.S. and Europe in multiple asset classes. We rate more than 2,600 issuers and 54,000 securities worldwide and are driven to bring more clarity, diversity and responsiveness to the ratings process. Our approach and size provide the agility to respond to customers’ needs, while being large enough to provide the necessary expertise and resources. For more details visit us at dbrs.com.
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