CIOInsider India Magazine
Global Semiconductor Revenue Tops Record by $ 500 Billion
Worldwide semiconductor revenue increased by 25.1 percent in last year to total $583.5 billion, crossing the $500 billion threshold for the first time, according to the reports.
Andrew Norwood, research vice president, Gartner says, “as the global economy bounced back in 2021, shortages appeared throughout the semiconductor supply chain, particularly in the automotive industry. The resulting combination of strong demand as well as logistics and raw material price increases drove semiconductors’ average selling price higher (ASP), contributing to overall revenue growth last year.”
“The 5G smartphone market also helped drive semiconductor revenue, with unit production more than doubling to reach 555 million last year, compared to 250 million in 2020. U.S. sanctions imposed on Huawei resulted in other Chinese smartphone OEMs gaining share and fuelling growth for 5G chipset vendors such as Qualcomm, MediaTek and Skyworks. Meanwhile HiSilicon, Huawei’s chip subsidiary, saw revenue decline from $8.2 billion in 2020 to around $1 billion in last year,” adds Norwood.
Samsung Electronics regained the top spot from Intel for the first time since 2018, with revenue increasing 31.6 percent last year. Its memory revenue grew 34.2 percent last year, in line with the growth rate of the overall memory market. Intel dropped to the second position with 0.5 percent growth in last year, delivering the lowest growth rate among the top 25 vendors.
DRAM had the best performance with revenue growth of 40.4 percent last year, increasing revenue to $92.5 billion. Strong demand from servers and PCs created a DRAM undersupply that drove double-digit ASPs through most of the year
Within memory, DRAM had the best performance with revenue growth of 40.4 percent last year, increasing revenue to $92.5 billion. Strong demand from servers and PCs created a DRAM undersupply that drove double-digit ASPs through most of the year.
