Global sourcing activities for sensors were down by 27% for 2023, and excess inventories still linger in the supply chain. Chinese sensor producers are vigorously seeking new design-ins with shortened lead times and more competitive prices. Demand across all sensor types is forecast to rise by 6% sequentially in Q1; suppressed automotive, industrial, and medical demand paired with a slowly recovering smartphone market will translate into largely flat pricing into H2. However, cost-downs from tier-one suppliers are available for new projects.