Semiconductor sales are expected to return to a more realistic growth trajectory this year after a record 2021, analyst firm IC Insights said in a study released this month.
Estimated chip sales will arrive An all-time high of $680.6bn (£500bn) in 2022, up 11% from 2021. Integrated circuit revenue is expected to total $565.1 billion (£415 billion), up 11% year-on-year, and OSDs – optoelectronics, sensors/actuators and discrete components – are expected to reach $115 billion (£85 billion), also up 11%.
Analysts say the growth rate will be lower than last year, when chip sales were up 25% from 2020.
Insight 64 analyst Nathan Brookwood said the electrification of cars and the changes related to the pandemic, especially as people rely more than ever on technology and internet services, increase demand for computers and other electronics. demand, will provide stability to an otherwise volatile semiconductor market, told register.
Dean McCarron, president of Mercury Research, said demand for GPUs has surged during the pandemic as people seek out new forms of entertainment at home register.
Now that there is a shortage of GPUs, crypto miners and scalpers are hoarding boards, which sell for nearly three to four times their normal price. Nvidia and AMD expected GPU supply improved in the second half of the year.
In its year-end technology study, Deloitte said chip shortages will continue through 2023, but not as severe. The chip shortage cost Apple $6 billion in lost revenue in the final fiscal quarter of 2021.
Artificial intelligence, cloud and data center, healthcare and automotive applications will also drive demand, said Duncan Stewart, director of technology, media and telecommunications research at Deloitte. register.
“Every end market for semiconductors is growing, and it’s growing faster than ever,” Stewart said.
Deloitte estimates that the average car contained $300 of microchips in 2010, and by 2022, that could rise to more than $500.
The consulting giant expects the semiconductor market to top $600 billion for the first time by 2022, up from $412 billion in 2019.
One shortage Low-cost chips such as power management ICs that are critical to electric vehicles have deteriorated and halted car production. Other low-cost chips such as display drivers and USB-C controllers are expected to reduce PC shipments this year.
In 2021, everyone is clamoring for the same parts, and the chip factory has insufficient capacity. Brian Matas, vice president of market research at IC Insights, said the new fabs are coming online and will be able to better supply the market. register.
“This helps reduce pricing pressure,” Matas said.
Matas said DRAM suppliers are running short of capacity this year, but new and retrofitted factories that start production in the second half of 2022 may lighten the load.
Matas said the unpredictability of the coronavirus remains an uncertainty over how the semiconductor market will play out this year.
The COVID-19 outbreak in Xi’an, China, last month forced Micron and Samsung to scale back operations at DRAM facilities after the city was locked down.This leads to a short term impact Regarding Micron’s DRAM supply, although the company hopes to resume normal operations in the city by the end of this month.
Despite the consolidation, volatility in the semiconductor market remains, Matas said. Fewer chip companies are supplying physical parts, though that hasn’t eliminated the spending and capacity frenzy that has led to volatility.
The hot and cold nature of the semiconductor market is particularly pronounced in the largest market segments, DRAM and flash memory. The DRAM market collapsed in 2019 after cooling demand from large data center builders and rebounded last year from pandemic-driven demand for computing equipment, according to IC Insights.
Chipmakers often adjust factories to make products that are in demand.Samsung in 2020 Converted A line that produces DRAM to make CMOS image sensors due to growing demand for cameras and other vision equipment.
With government help, Intel, TSMC, GlobalFoundries and Samsung are investing in multi-billion-dollar factories around the world. Top chip makers are also spending large sums of money to secure chip supplies through multi-year deals. AMD in late December extended its wafer supply agreement with GlobalFoundries to $2.1 billion through 2025, up from $1.6 billion through 2024. ®
