Total MPU sales are expected to rise 7% this year with cellphone processors increasing 10% following a 31% jump in 2021; modest growth is seen in computer CPUs and embedded MPUs, says new 1Q update.

Total microprocessor sales in 2021 maintained strength, growing 14% to a record-high $102.9 billion after climbing 16% in 2020, when emergency lockdowns in the Covid-19 virus crisis drove up demand for personal computers and large-screen smartphones because of increased reliance on the Internet during the deadly pandemic, says the new February 1Q Update of IC Insights’ 2022 McClean Report service (Figure 1). Worldwide sales growth in total microprocessors is expected to slide back in 2022 to an increase of 7%, which will lift the MPU market to another record high of $110.4 billion, with unit shipments rising 6% to 2.6 billion processors, according to the 1Q22 update’s forecast.

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Shortages, tight supplies, and higher prices drive up most O-S-D products in the economic rebound while CMOS image sensor sales are muted by U.S.-China disputes and softness in some systems, says report.

Worldwide sales of optoelectronics, sensors and actuators, and discrete semiconductors (O-S-D) each climbed to record-high levels during the 2021 global economic rebound from the Covid-19 virus crisis and lockdowns aimed at slowing the spread of the deadly pandemic.  According to IC Insights’ January Semiconductor Industry Flash Report, total O-S-D revenues crossed $100 billion for the first time ever in 2021, growing 18% to $104.2 billion compared to $88.3 billion in 2020, when combined sales in the three markets increased by less than 3% as the virus first took hold (Figure 1).

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Moderating growth rate from 2021-2026 follows strong 2016-2021 CAGR of 11.0%.

IC Insights has released its comprehensive forecast and analysis of the worldwide semiconductor industry in its January Semiconductor Industry Flash Report—part of the 2022 McClean Report service.

The report forecasts total semiconductor sales will rise 11% this year following a very strong 25% increase in 2021 and an 11% increase in 2020.  If achieved, it would mark the first time since 1993-1995 that the semiconductor market has enjoyed three consecutive years of double-digit growth.  From 2016-2021, the compound annual growth rate (CAGR) for the total semiconductor market was 11.0%—a very strong period that included a big surge in DRAM and flash memory markets in 2017 and 2018 and strong post-Covid recovery in 2020 and 2021. However, most industry observers—including IC Insights—realize that the semiconductor industry is very cyclical and ongoing annual double-digit gains are unsustainable. As a result, IC Insights now forecasts total semiconductor sales will rise over the next five years at a more moderate compound annual growth rate of 7.1% (Figure 1).

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