Global Semiconductor Revenue Expected to Grow 13.7%, IDC Says, But Supply Chain Remains Selectively Challenging Amid Global Economic Volatility

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SAN MATEO, Calif., June 8, 2022 – According to the Worldwide Semiconductor Technology and Supply Chain Intelligence service of International Data Corporation (IDC), global semiconductor revenues are expected to reach $661 billion in 2022, a 13.7% year-on-year growth rate after strong results in 2021, where revenues reached $582 billion. of dollars.

Demand by industry in 2021 was strongest in the industrial and automotive industries with year-over-year growth of 30.2% and 26.7%, respectively. The main growth applications were 5G phones, game consoles, hotspots, data centers and portable devices. IDC expects these apps to continue to grow in 2022, but more moderately overall, as consumer-facing markets begin to experience a slowdown by the fourth quarter of the year. End markets served by mature process nodes have been hit the hardest by semiconductor supply constraints, with manufacturers slowing down production lines or slowing the introduction of new products and features. These shortages have pushed up average selling prices (ASP) as demand has increased across most device applications over the past two years.

Samsung took the top spot in semiconductors from Intel, with memory sales growing significantly faster in 2021, reaching $75.8 billion versus $57.7 billion in 2020 for semiconductor company revenue , an increase of 31.1% year-on-year. The top 5 companies also included SK Hynix, Qualcomm and Micron. In 2021, the top 10 companies held 58% of the total semiconductor market while the top 20 companies held 76% of the market, up from 57% and 75% respectively in 2020, showing the leaders’ continued growth in market share. market. IDC tracks approximately 200 vendors in our coverage, and more than 120 companies grew more than 20% in 2021.

IDC expects front-end manufacturing to meet demand by the third quarter of this year, but secondary manufacturing and the materials supply chain are extending lead times and prolonging shortages through the end of the year. year and through the first half of 2023. For 2022, IDC sees continued resilience in semiconductor sales worldwide, with cloud, network infrastructure, and automotive markets maintaining secular growth and semiconductor content per system is increasing as volumes moderate in the second half of the year. Long-term agreements put in place by foundries and fabless suppliers and IDM during the 2021 semiconductor shortages will support ASPs and bring demand visibility to semiconductor suppliers this year, supporting expansions of capability, especially in more mature process lines. In the memory market, IDC forecasts DRAM and flash memory growth of 18% and 26% respectively in 2022 despite price attrition expected later this year. Challenges that will create headwinds for the global economy include inflation and fiscal policies to deal with it, as well as shutdowns in China and the impact of the war between Ukraine and Russia. As Shanghai begins to ease restrictions and open in late June, coupled with stimulus policies to revive the economies of cities under lockdown, China’s economy could recover moderately in 2H 2022.

IDC projects that the five-year compound annual growth rate (CAGR) from 2021 to 2026 will increase by 4.93%. Additional information can be found in the next IDC presentation, Global Semiconductor Market Forecast Update and Final Market Share for 2021 (IDC#US49263822).

“The semiconductor industry experienced an extremely strong year of growth in 2021, but shortages and tight inventories in some semiconductor markets remain. The global nature of the semiconductor industry has been challenged. test by COVID-19 and continues to be impacted by regional shutdowns, but we reiterate our outlook for a year of positive growth for 2022. Longer term, fab news and investment announcements will add significant capacity and could increase the risk of overcapacity beyond 2023,” said Nina Turner, research manager, Semiconductors at IDC.

“Overall, the semiconductor industry remains on track to deliver another year of healthy growth as the super cycle that began in 2020 continues this year,” said Mario Morales, Vice President of the Semiconductors group at IDC. “Financial and systems markets remain narrowly focused on shortages in specific sectors of the supply chain, but what is more important to highlight is how critical semiconductors are to each major system category. and semiconductor content growth that remains flat over the next five to seven years.”

The IDC Worldwide Semiconductor Technology Supply Chain Intelligence (STSI) service provides the foundation for IDC’s research into semiconductor supply, including our market forecasts and custom market models. The service includes foundry and automotive semiconductor coverage and revenue data collected from over 150 of the top semiconductor companies for 2015-2021 and forecasts for 2022-2026. Revenues from over twenty semiconductor device areas, five geographic regions, seven industry segments and over 60 end device applications are included in the database and pivot tables. For more information about STSI, please contact Nina Turner at nturner@idc.com.

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About IDC

International Data Corporation (IDC) is the world’s leading provider of business information, consulting services and events for the information technology, telecommunications and consumer technology markets. With more than 1,200 analysts worldwide, IDC offers global, regional, and local expertise on IT technology, benchmarking, and procurement, as well as industry opportunities and trends in more than 110 countries. IDC’s analysis and insight help IT professionals, business executives, and the investment community make fact-based technology decisions and achieve their key business goals. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the global leader in technology media, data and marketing services. To learn more about IDC, visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC-Blog for industry news and insights.

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