Gartner recently published a report in which he erects an inventory of the evolution of the semiconductor market between 2020 and 2021. The numbers are impressive. Global revenues from this market increased by 26.3% to reach 550 billion euros.
The semiconductor market is dominated by South Korea
For Andrew Norwood, VP Research at Gartner, “The rise of 5G smartphones and the combination of strong demand and rising commodity prices have pushed up semiconductor prices. This contributed to significant revenue growth in 2021”. It’s Samsung Electronics who takes first place in the ranking of semiconductor sellers (with a recent investment of 175 billion euros). Its revenues are up 28% between 2020 and 2021. The Korean manufacturer is positioned just ahead of Intel, for the first time since 2018. Other manufacturers have seen good progress. This is particularly the case for AMD (+68.6%) and Mediatek (+60.2%).
Wikipedia: stopping cryptocurrency donations considered
In its report, Gartner notes that the most significant change in this ranking of semiconductor vendors in 2021 is HiSilicon’s exit from the top 25. As Andrew Norwood explains, “HiSilicon’s revenue decreased by 81%, from $8.2 billion in 2020 to $1.5 billion in 2021. A direct result of US sanctions against the company and its parent company Huawei”. Going against the trend of the market. These sanctions obviously an impact on China’s market sharewhich represents only 6.5% of global semiconductor production in 2021.
Demand up 34.9% in the automotive market
South Korea saw the largest increase in market share in 2021. The country now holds 19.3% of the global semiconductor market. If global incomes have increased so much, it is because demand is very strong. Gartner specifies that the year 2021 has seen the return of strong demand in the automotive and industrial markets. The automotive market outperformed all other markets, with an increase in demand of 34.9% in 2021. In the smartphone market, demand grew by 24.6%.
Finally, the transition to telework, a major paradigm shift for employees around the world, has affected the evolution of this market. This trend has fueled the increase server deployments by cloud service providers. An essential investment to offer good working conditions to its teams. Telework has also prompted many companies to equip their employees with laptops, which was not always the case before the health crisis.