The semiconductor market continues to grow, despite pandemics and shortages
The semiconductor market continues to grow
According to IDC, despite the ongoing pandemic and chip shortage, semiconductor market revenue was $ 464 billion in 2020 and will exceed $ 522 billion in 2021. The prediction is based on the fact that more and more devices are becoming “smart”, resulting in the need for chips to support them. Additionally, aided by Smart Working and distance learning, the IT sector is set to be the main driver of this growth, as each PC uses dozens of chips, many of which are made using advanced process technology. Additionally, shipments of smartphone chips, consumer electronics and automotive applications will also be quite substantial.The chip shortage will continue throughout 2021, but as the industry adopts more expensive chips for a wide variety of applications, semiconductor sales are set to grow once again. Semiconductors for PCs and servers grew 17.3% year-on-year to reach $ 160 billion in 2020. Several factors have driven PC and server chip sales to new heights. The demand for PC has grown quite dramatically over the past year, which has caused shortages. Meanwhile, the CPU and GPU are made using sophisticated manufacturing technologies and therefore are quite expensive. Finally, supply constraints have allowed producers to further raise the prices of their products. For these reasons, IDC expects IT semiconductor sales to grow 7.7% to $ 173 billion in 2021.
Shane Rau, research vice president, Computing Semiconductors, said:
Demand for PC processors remains strong, especially in the low-end product-oriented segments. The PC processor market appears to be doing pretty well in this first half of the year and will likely stay that way throughout 2021.
Smartphone chips are very important to the semiconductor market. Unit shipments of smartphones fell 10% last year, but as new 5G devices use more expensive SoCs and more chips in general, smartphone semiconductor revenues increased 9.1% year-on-year. IDC estimates that cell phone chip sales will grow 23.3% in 2021, reaching $ 147 billion.
Phil Solis, research director for Connectivity and Smartphone Semiconductors, said:
2021 will be a particularly important year for semiconductor vendors as 5G phones will account for 34% of all cell phone shipments, while 5G semiconductors will contribute nearly two-thirds of segment revenue.
Consumer electronics chips totaled $ 60 billion in 2020, up 7.7% year-on-year as sales of devices such as game consoles, tablets, wireless headsets, smartwatches and sets -top-boxes were strong.
Rudy Torrijos, research manager, Consumer Semiconductors, added:
New game consoles from Microsoft and Sony, sustained sales of wearables from Apple and the rise of sm home networks art managed by Amazon Alexa and Google Assistant will accelerate growth in 2021 to 8.9% year-on-year.
According to IDC, shipments of automotive chips recovered in the second half of 2020, but many Automotive semiconductors are currently very scarce, a situation that will persist throughout 2021. However, semiconductor revenues for this sector are expected to grow 13.6% year-on-year.
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Global mobile phone semiconductor market to grow 23% in 2021
The global semiconductor market is expected to grow 12.5 percent this year to a value of USD 522 billion, according to the latest forecast from IDC. That's slightly faster than the 10.8 percent growth registered in 2020. The market researcher expects chips for mobile phones to be worth USD 147 billion in 2021, up 23.3 percent from last year thanks to a growing share of more expensive 5G chips.
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