Semiconductor revenue expected to reach $522 billion this year
Semiconductor makers appear set to make $522 billion this year, despite the global shortage.
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What you need to know
In news that likely won’t surprise anyone, semiconductor revenue is expected to increase this year. The latest forecast from IDC states that the semiconductor market will reach $522 billion in 2021, which would mark a 12.5% year-over-year growth rate. IDC expects the consumer, computing, 5G, and automotive markets to drive the growth in the semiconductor market.
The global semiconductor shortage has made headlines for over a year, but that shortage doesn’t mean that manufacturers aren’t selling semiconductors. If anything, the shortage of semiconductors is an indicator of growing demand, since all manufacturers are racing to make as many semiconductors as possible.
“The PC processors market looks strong through the first half and likely the whole year,” says Shane Rau, research vice president, Computing Semiconductors. “Demand for PC processors remains strong, especially in value-oriented segments.”
Even if areas in which the total number of devices sold dipped, manufacturers are still making money. Despite the fact that mobile phone shipments fell by more than 10 percent in 2020, mobile phone semiconductor revenues reportedly grew 9.1%. This is due to “higher priced 5G semiconductors, more memory per phone, sensors, and RF support for more spectrum bands,” according to Phil Solis, research director for Connectivity and Smartphone Semiconductors.
Demand for semiconductors remains high. Stories like thebest graphics cardsbeing out of stock and people not being able to purchase anXbox Series XorXbox Series Smake the rounds frequently, but semiconductors are used in millions of devices across a wide range of industries.
IDC expects supply constraints to continue through 2021, as doNVIDIAand TSMC.
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Sean Endicott is a tech journalist at Windows Central, specializing in Windows, Microsoft software, AI, and PCs. He’s covered major launches, from Windows 10 and 11 to the rise of AI tools like ChatGPT. Sean’s journey began with the Lumia 740, leading to strong ties with app developers. Outside writing, he coaches American football, utilizing Microsoft services to manage his team. He studied broadcast journalism at Nottingham Trent University and is active on X @SeanEndicott_ and Threads @sean_endicott_.
