The global semiconductor market has been facing a huge supply deficit for a while and companies have been ramping up production to meet the surging demand.
As a result of ramped up production, the global chip sales hit a record high last year. The global market showed great performance in 2021 and China was the biggest market on the list.
The report comes from the Semiconductor Industry Association (SIA) and it shows that the global sales revenue from chips hit $555.9 billion in 2021. This was a remarkable growth of 26.2% compared to the previous year. China was the leading semiconductor market with a whopping $192.5 billion in revenue in 2021. This was an astounding increase of 27.1% compared to 2020.
In 2020, semiconductor sales were only 6.8% better compared to 2019, but in 2021, the total sales hit 1 trillion for the first time since 2018.
SIA’s CEO John Neuffer commented on the market report saying:
It’s still really trending very strongly towards increased demand. We’re just not going to get this kind of slingshot effect that we had in the pandemic.
In simpler words, Neuffer said that this explosive growth is not expected to sustain over the upcoming years, but we will definitely see a growing trend in the future. Major chipmakers including TSMC, Intel, Samsung, and others have announced billions of dollars in investments to expand chip production through new facilities.
We think in the foreseeable future that there’s going to be plenty of demand for us to do very, very aggressive plant construction.
Going forward, SIA predicts that the semiconductor industry will grow by 8.8% this year as companies continue to build up production to meet the increasing demand.