Global Semiconductor Sales Expected to Grow 13% This Year Despite Supply Shortages

[Asia Economy Reporter Suyeon Woo] Despite the global semiconductor supply shortage, it is forecasted that worldwide semiconductor sales will grow by about 13% this year, driven by continuous growth in IT & computing, 5G, and automotive semiconductors compared to the previous year.

According to Digitimes and market research firm IDC on the 8th, global semiconductor sales this year are expected to reach $522 billion, a 12.5% increase from the previous year. Last year, semiconductor sales recorded $464 billion, up 10.8% due to increased non-face-to-face demand amid the COVID-19 pandemic.

In particular, the semiconductor market for computing systems such as PCs and servers reached $160 billion, growing 17.3%. IDC expects sales in this sector to grow 7.7% year-over-year to $173 billion this year.

The semiconductor market for smartphones is also expected to steadily increase due to the development of 5G technology. IDC predicts that 5G smartphones will account for about 34% of total smartphone shipments this year, and semiconductors for 5G smartphones will make up two-thirds of sales in this sector. Smartphone semiconductor sales are projected to increase by 23.3% to $147 billion this year.

The consumer semiconductor sector, mainly used in IT products, saw sales grow 7.7% last year due to strong performance of products such as game consoles, tablets, wireless headphones, and smartwatches. The automotive semiconductor sector, which experienced severe supply shortages last year, is expected to continue facing supply-demand imbalances this year. However, due to the supercycle following COVID-19 and a strong automotive market, automotive semiconductor sales are predicted to increase by 13.6% year-over-year.

Mario Morales, Vice President of IDC’s Semiconductor Program, said, "Due to the supercycle that began at the end of 2019, this year will be a year of strong growth. The market is focusing on supply shortages in specific sectors, but what is more important is that semiconductors are critical components in all major systems."