IDC expects the semiconductor market to grow 17.3% in 2021. A real outrage, the highest in remembrance and another great advance compared to the 10.8% rise in 2020 that was already considered generous.
The growth is driven by mobile phones, laptops, servers, automotive, smart home, games, handheld devices and Wi-Fi access points, according to the consultancy. Obviously, the impressive increase in revenue is also related to the lack of inventory and rising costs in all segments, especially in the important group of memoirs. IDC expects that the situation will not normalize until well into 2022 and that in 2023 the market will turn towards excess supply.
Despite another new wave of Covid-19, consumption is still healthy. IDC reports that dedicated production facilities have been allocated for the remainder of the year, with near 100% capacity utilization. Manufacturers are relying on the world’s large foundries and demand satisfaction is improving. In any case, the problems for the final product will persist throughout 2022.
Still, at IDC they are obtimists: «The semiconductor market continues to rise and not only benefits semiconductor companies, but all other manufacturers«. According to the analysis firm 5G semiconductor revenue to increase 128% and the total of mobile phone chips is expected to grow 28.5%.
Game consoles, smart home and portable devices will grow 34%, 20% and 21% respectively. Semiconductor revenue for the automotive industry will also increase 22.8% as the stock shortage eases towards the end of the year. Semiconductor revenue for laptops will grow 11.8%, while server revenue will increase 24.6%.
Overall, IDC predicts that the semiconductor market will reach $ 600 billion by 2025. This represents a 5.3% compound annual rate increase during the forecast period, higher than the historical average of around 3%.