Global Semiconductor Market Growth Rate Revised Up Again: "12→19→24% Growth"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] This year, the global semiconductor market revenue is expected to grow more significantly than previously forecasted, surpassing the $500 billion mark for the first time. Sales of memory semiconductors such as DRAM and NAND flash, areas where domestic semiconductor companies like Samsung Electronics and SK Hynix have strengths, are anticipated to increase by 32% this year, leading the market growth trend.

On the 17th, global market research firm IC Insights revised its semiconductor market growth rate for this year upward from the previous 19% to 24%, an increase of 5 percentage points. This marks a second upward revision following an earlier adjustment from 12% to 19%.

IC Insights explained, "The strong bit-level price performance of memory semiconductors such as DRAM and NAND flash has continued, and the outlook for logic and analog semiconductor product groups has improved beyond expectations, leading to the upward revision of the overall semiconductor growth rate." The average selling price (ASP) of semiconductors this year is expected to rise by 2% compared to last year, while shipment volumes by product are projected to increase by 21%.

In particular, the growth of memory semiconductors is expected to be remarkable. DRAM semiconductor sales are forecasted to increase by 41% year-over-year, driven by rising bit-level prices. Considering last year’s growth rate was 8%, this represents a significant expansion. IC Insights anticipates that the price increase trend will continue through the end of the year due to DRAM supply shortages.

NAND flash sales are projected to grow by 22%. Although the bit-level price of NAND flash declined in the first quarter of this year compared to the first quarter of last year, it has stabilized since the second quarter and is expected to rise in the second half of the year.

Additionally, IC Insights analyzed that logic semiconductor sales will increase by 24% and analog semiconductor sales by 25% this year. For logic semiconductors, the ASP is expected to drop by 5%, but a 30% increase in shipment volume is expected to offset this decline. Analog semiconductors are forecasted to see an ASP increase for the first time in 17 years due to supply shortages.

Earlier this month, the World Semiconductor Trade Statistics (WSTS), a global semiconductor supply and demand research organization, also revised its forecast for the global semiconductor sales growth rate this year upward from 10% to 19%.