After years of moderate increases, IC suppliers blindsided by automotive IC demand spike in 2021.

IC Insights has updated and released its comprehensive forecast and analysis of the worldwide semiconductor industry in its January Semiconductor Industry Flash Report, which is included as part of the 2022, 25th edition of The McClean Report service.  Next month, the company will release the first of its four quarterly updates to the service.  The February quarterly update will include, among numerous other topics, an in-depth analysis of the automotive IC market.  An excerpt from this analysis is presented in this Research Bulletin.

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First three-year period of double-digit gains in 25 years, based on IC Insights’ forecast.

IC Insights has updated and released its comprehensive forecast and analysis of the worldwide semiconductor industry in its January Semiconductor Industry Flash Report, which is included as part of the 2022, 25th edition of The McClean Report service.

The report forecasts that the IC market will rise 11% this year following a strong 26% increase in 2021 and a 13% jump in 2020 (Figure 1).  If achieved, it would mark the first time in 25 years that the IC market has enjoyed three consecutive years of double-digit growth.  The previous time such an increase occurred was the four-year period from 1992-1995. Figure 1 highlights years when IC market growth exceeded 25%.

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The value of semiconductor content in electronic systems reached 33.2% last year, surpassing the previous record high set in 2018, says new 2022 report.

Historically, the driving force behind the higher average annual growth rate of the semiconductor industry as compared to the electronic systems market is the increasing value or content of semiconductors used in electronic systems (Figure 1).  With global unit shipment growth rates of cellphones, automobiles, and PCs showing maturity and slowing over the past 10 years, the disparity between the 3.5% 2011-2021 CAGR registered in the electronic systems market and 6.5% 2011-2021 CAGR displayed by the semiconductor market is directly due to the increasing content/value of semiconductors in electronic systems, according to the January Semiconductor Industry Flash Report that IC Insights will release this week as part of its 2022 McClean Report service.

Figure 1

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Above average increases are expected in all major product categories, which will lift the global market to record-high revenues in 2022 despite growth rates easing from last year’s economic rebound, says report.

Total semiconductor sales in 2022 are forecast to grow 11% and reach a record-high $680.6 billion after worldwide revenues climbed 25% in the 2021 economic rebound from the 2020 outbreak of the Covid-19 virus crisis, according to the January Semiconductor Industry Flash Report that IC Insights will release next week as part of its 2022 McClean Report service.  The Semiconductor Industry Flash Report shows the total semiconductor market growing at a low double-digit rate in 2022 (Figure 1).  Sales growth is expected to slow, but remain above average, in all major semiconductor product categories.

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