Predictions show that the Semiconductor industry will grow by 9 percent and cross 600 billion dollars for the first time in 2022 as a result of increasing sales.
FREMONT, CA: The semiconductor sector has had a rough year in 2021 as the demand for the chips increased throughout the year, the semiconductor industry was struggling to ensure supply. In fact, in 2021 global shipments for the semiconductor industry experienced their worst delays. While COVID-19 was frequently blamed for the interruption and delays in shipments, other causes were also at work. Further, it also included natural calamities, shipping incidents, and global trade issues. Shipment delays, for example, were caused by Brexit rules in the United Kingdom, while adverse weather conditions impeded shipment delivery in Southeast Asia. Trade tensions between the United States and China have also contributed to the delays.
Despite all these delays, the semiconductor industry continues to be the largest winner, since most corporations have decided to invest in new semiconductor manufacturing near them as global transportation has been disrupted worldwide. Some businesses have even decided to develop their own chip facilities in order to lessen their reliance on global chip suppliers. Since the industry emerged from its worst recession in 2019, the current semiconductor cycle has been blazing on all cylinders. In fact, they forecast that semiconductor sales will increase by another 9 percent and surpass 600 billion dollars for the first time in 2022. This is on top of a 26 percent increase to 553 billion dollars in 2021.
Major chipmakers such as TSMC, Intel, Bosch, SMIC, and others have already announced intentions to expand chip production capacity in order to satisfy rising demand and sales. However, it is possible that the new facilities and modifications will take a long time to reach online. Euler Hermes’ Global Trade Report anticipated earlier in December that global supply chain disruptions could continue high till the second half of 2021 due to Covid’19 outbreaks globally, China’s sustained zero-Covid policy and demand and logistic volatility during the Chinese New year. However, trade growth is predicted to remain strong with some clear winners across regions and sectors through 2022 and 2023, as per trade credit insurer.