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Global Semiconductor Market to Witness 10.9% Year-on-Year Growth in 2021: MIC
May 21, 2021

Global semiconductor market value is estimated to reach US$488.3 billion in 2021, up 10.9% compared to 2020, according to MIC (Market Intelligence & Consulting Institute), a major government think tank and IT research institute in Taiwan. “The growth momentum will continue into 2022 with an annual growth rate of 12.7%, owing mainly to the surge in demand for notebook PCs, 5G, HPC (High Performance Computing), and automotive electronics services,” said Kai-an Cheng, senior industry analyst at MIC. "With an increasing sales of electronic products, the demand for logic ICs also rises significantly over the years."


Taiwan Semiconductor Industry Shipment Value, 2014-2021



Note: US$1 = US$27.6

Source: MIC, May 2021

The chip shortage is deteriorating in 2021, spanning from foundry to packaging and testing. As a result, the lead-time will extend and chip price will keep rising. Insufficient production will cause crowding-out effects on application ICs with less profit margins such as display driver ICs while the demand for automotive chips is increasing to perpetuate the shortage. Therefore, MIC expects the chip shortage will be eased in the third quarter of 2021 but will not be resolved until 2022.

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