Advertisement
Sunday, Oct 17, 2021
Outlook.com
Outlook.com

Global Semiconductor Market To Grow By 17.3% in 2021: IDC Report

The industry will see normalisation and balance by the middle of 2022, with a potential for overcapacity in 2023 as larger-scale capacity expansions begin to come online towards the end of 2022.

Global Semiconductor Market To Grow By 17.3% in 2021: IDC Report
Global Semiconductor Market To Grow By 17.3% in 2021: IDC Report
outlookindia.com
2021-09-22T12:44:13+05:30

The worldwide semiconductor market is expected to grow by 17.3% in 2021 versus 10.8% in the previous calendar year, according to research firm IDC.

The industry will see normalisation and balance by the middle of 2022, with a potential for overcapacity in 2023 as larger-scale capacity expansions begin to come online towards the end of 2022, an IDC statement said.

Growth is driven by mobile phones, notebooks, servers, automotive, smart home, gaming, wearables, and Wi-Fi access points, with increased memory pricing. IC shortages are also expected to continue easing through the fourth quarter of 2021 as capacity additions accelerate, it said.

Despite the current Covid-19 wave, consumption remains healthy.

IDC reports that dedicated foundries have been allocated for the rest of the year, with capacity utilisation at nearly 100%. “Front-end capacity remains tight but fabless suppliers are getting the production they need from their foundry partner,” the statement said.

Front-end manufacturing is starting to meet demand in the third quarter of 2021. However, larger issues and shortages will remain in back-end manufacturing and materials.

According to IDC, 5G semiconductor revenues will increase by 128%, with total mobile phone semiconductors expected to grow by 28.5%.

Game consoles, smart homes, and wearables will grow 34%, 20% and 21%, respectively.

Automotive semiconductor revenues will also increase by 22.8% as shortages are mitigated by year-end. Notebook semiconductor revenues will grow by 11.8%, while X86 Server semi revenues will increase by 24.6%, IDC said.

Semiconductor wafer prices increased in the first half of 2021 and IDC expects increases to continue for the rest of 2021 due to material costs and opportunity costs in mature process technologies.

Overall, IDC predicts the semiconductor market to reach USD 600 billion by 2025 – representing a CAGR of 5.3% through the forecast period. This is higher than the typical 3-4% mature growth seen historically.

(With inputs from PTI)

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Priyanka Gandhi To Represent Congress In Upcoming Uttar Pradesh Polls

Priyanka Gandhi To Represent Congress In Upcoming Uttar Pradesh Polls

The party's newly-appointed election campaign committee chief P L Punia announced the decision on Sunday, saying Priyanka Gandhi is the most popular political figure in UP at present.

Kerala Rains: Death Toll Touches 19, Amit Shah Assures Help As Rescue Operations Continue

Kerala Rains: Death Toll Touches 19, Amit Shah Assures Help As Rescue Operations Continue

The National Disaster Response Force (NDRF) has deployed 11 teams for search, rescue and relief operations in the state following incessant flooding and landslides since Saturday.

Going By The Book? BCCI Invites Application For India Post After Dravid 'Deal'

Going By The Book? BCCI Invites Application For India Post After Dravid 'Deal'

It is a foregone conclusion that Dravid, who is currently heading the NCA, is set to take over unless something miraculous happens.

Kashmir LG Terminates Geelani’s Grandson Anees-Ul-Islam From Service

Kashmir LG Terminates Geelani’s Grandson Anees-Ul-Islam From Service

The government has so far dismissed over 20 employees from service on accusations of being a threat to the security of the State.

Advertisement