Headwinds will not hurt 11% chip market growth in 2022

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The chip market faces a variety of challenges, including rising inflation, rising energy costs, ongoing supply chain failures, the recent blockade of the Covid-19 virus in China, and the war between Russia and Ukraine. yet, IC Insight Total semiconductor sales are expected to increase by 11% this year as well. This is the same growth rate expected in January.

The graph shows 11% growth in the chip market in 2022

In fact, the revenue of the entire US manufacturing industry Expected to grow This year, 9.2%, despite labor, materials and logistics challenges Supply Management Association. This figure is up from the 6.5% increase forecast at the end of 2021.

Tim Fiore, chair of ISM’s manufacturing industry, said: Investigation Committee. Of the 18 sectors ISM is tracking, 16 expect increased revenue, including computers and electronic products, and 13 expects adoption this year.

Demand for semiconductors and industrial products remains strong, driving steady growth. The other is to improve supply chain resilience in the face of two years of unprecedented turmoil, experts say. Air freight is more expensive than shipping, but according to electronics sellers, orders are processed quickly every day. Technology companies design their products with component availability in mind. Unless the customer is willing to wait, the car will be manufactured with fewer electronics options.

According to Fiore, this is a seller’s market for everything from materials to automobiles, so costs are passed on to customers.

According to Intel CEO Pat Gelsinger, the global shortage of semiconductors is not expected to disappear until 2024.Although the chip company announced schedule In more than 29 fabs around the world, it takes years for the plant to go live.

What has changed?

IC Insights has made some changes to its forecasts from January. How the semiconductor market achieves double-digit low growth and reaches record sales of $ 680.7 billion in 2022.

As a distributor who also enjoys healthy growth, he says, “It’s all about the mix.” Distributors don’t get as many products as they can sell, but many components are moving through the channel. At any time, customers waiting for those parts will have access to one category of inventory.

IC Insights has raised and lowered its sales growth forecasts in many semiconductor categories. According to research firms, these changes offset each other, boosting the overall growth of the semiconductor market in 2022 to 11%, despite increasing economic headwinds that are challenging global growth this year. Maintaining.

Sales forecasts for microcomponent ICs have been raised from 7% earlier this year to 11%. This increase is an increase in microprocessor sales in the embedded MPU category (up 12% from the previous 9%) and cellular application processors (up 22%, significantly higher than the January forecast of 10%). It is due to. The forecasts for analog ICs (up 12%) and logic integrated circuits (up 11%) have not changed.

IC Insights has lowered its forecasts for non-IC semiconductor market categories (optoelectronics, sensors and actuators, and discrete semiconductors (OSDs)). It accounts for about 17% of the world’s total semiconductor revenue. Sales are now expected to increase 9% to $ 113.6 billion, compared to the previous forecast of 11% growth in 2022.

Optoelectronics sales are only up 6% due to weak growth in CMOS image sensors and lamp devices (mainly light emitting diodes-LEDs). However, the weaknesses of optoelectronics are partially offset by the significant increase in discrete semiconductors. This is mainly due to the increase in sales of power transistors (currently expected to grow by 11% in 2022) and diodes (expected to grow by 10%) due to their tightness. Supplying all over the world, the average selling price is rising. The 15% growth forecast for sensor / actuator semiconductors has not changed.

author: Barbara Jorgensen

Barbara Jorgensen

Barb Jorgensen is Editor-in-Chief of the supply chain publication EPS News and has been responsible for the manufacture, procurement and business of electrical devices for over 25 years. Barb spent most of his career at Electronic Business magazine and EBN. He is freelance; then he founded the online publishing EPS News with two industry veterans Bolaji Ojo and Gina Roos. EPS News was acquired by AspenCore in 2017.

https://epsnews.com/2022/06/02/headwinds-wont-derail-11-percent-chip-market-growth-in-2022-epsnews/ Headwinds will not hurt 11% chip market growth in 2022

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