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Global semiconductor industry sales up

by on15 February 2022

Even though there was a shortage 

Beancounters working for the Semiconductor Industry Association (SIA) have added up some numbers and reached the conclusion that, despite the chip shortage, global semiconductor industry sales reached $556 billion in 2021, up 26 per cent in the 2020.

The SIA said that 2021 saw the highest ever annual total for the industry. Even so, it failed to keep up with demand, leaving computer manufacturers and the auto industry, short of components.

Despite these shortages, the industry shipped a record 1.15 trillion semiconductor units in 2021. The SIA notes that it represents 99 per cent of the US semiconductor industry by revenue and about two-thirds of non-US chip firms.

Intel, the world's second largest semiconductor manufacturer, reported in January that its Q4 2021 revenue was $1.2 billion above the company's expectations. According to CEO [Kicking]Pat Gelsinger, Intel also saw its best-ever quarterly and full-year revenue.

AMD also reported a record-breaking 2021, while contract manufacturing giant Taiwan Semiconductor Manufacturing Company (TSMC) reported double-digit growth in Q4 2021. TSMC has announced plans to spend $100 billion over three years to boost semiconductor capacity and it's already building a $12 billion plant in Arizona.

New 5G smartphones have also helped drive semiconductor revenue, while memory was the best performing semiconductor category thanks to demand from cloud giants like Amazon Web Services, Microsoft and Google.

With the CHIPS Acts passed, SIA has called on the US government to fund new investments as the chip shortage persists. A recent study by the US Department of Commerce found that chip shortages will last through to the second half of 2022.

SIA president John Neuffer said: "Demand for semiconductor production is projected to rise significantly in the years ahead, as chips become even more heavily embedded in the essential technologies of now and the future. To ensure more semiconductor production and innovation is located in America over the long term, the U.S. government must swiftly fund CHIPS Act investments in semiconductor research, design, and manufacturing as part of bipartisan competitiveness legislation. Doing so will greatly strengthen America's economy, national security, critical infrastructure, supply chains, and tech leadership."


Last modified on 16 February 2022
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