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Friday, 15 April 2022 06:34

Global semiconductor revenue up by 26.3% in 2021: Gartner Featured

Global semiconductor revenue up by 26.3% in 2021: Gartner Image by manseok Kim from Pixabay

Global semiconductor revenue increased by 26.3% year-on-year in 2021, the technology analyst firm Gartner says, adding that this brought the dollar figure to US$595 billion (A$802 billion).

In a statement, the company said this represented the final figures for the year.

“The events behind the current chip shortage continue to impact original equipment manufacturers around the world, but the 5G smartphone ramp-up and a combination of strong demand and logistics/raw material price increases drove semiconductor average selling prices higher, contributing to significant revenue growth in 2021,” said Andrew Norwood, research vice-president at Gartner.

In its preliminary figures, issued in January, Gartner had said the total revenue was US$583.5 billion.

Samsung was the top vendor, overtaking Intel for the first time since 2018. But AMD and MediaTek showed the strongest growth in 2021, at 68.6% and 60.2% respectively.

Norwood said the biggest shift in the vendor ranking in 2021 was HiSilicon dropping out of the top 25.

semi global revenue companies 2021

“HiSilicon’s revenue declined 81%, from US$8.2 billion in 2020 to US$1.5 billion in 2021,” he said. “This was a direct result of the US sanctions against the company and its parent company Huawei.

“This also affected China’s share of the semiconductor market as it declined from 6.7% share in 2020 to 6.5% in 2021.

"South Korea had the largest increase in market share in 2021 as strong growth in the memory market propelled [it] to garner 19.3% of the global semiconductor market.”

The Gartner statement said the automotive market outperformed all others, growing 34.9% in 2021.

"Wireless communications, which is dominated by smartphones, saw growth of 24.6%. The number of 5G handsets produced reached 556 million in 2021, up from 251 million units in 2020, and enterprises upgraded their Wi-Fi infrastructure for employees heading back to the office," the company added.

"Driven by DRAM, memory accounted for 27.9% of semiconductor sales in 2021 and experienced 33.2% revenue growth, increasing US$41.3 billion over the previous year.

"Memory continued to benefit from the key demand trend in the last couple of years — the shift to home/hybrid working and learning.

"This trend fuelled increased server deployments by hyperscale cloud service providers to satisfy online working and entertainment, as well as a surge in end-market demand for PCs and ultramobiles."

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Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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