Record growth for the semiconductor market in 2020: it will continue in 2021 as well
Source: HW Upgrade added 04th Jan 2021
Strong growth figures for sales of semiconductors in 2020, driven by market demand for consumer electronics products and technology. The expected trend is always growing also in the new year.
by Paolo Corsini published 04 January 2021 , at 08: 11 in the Processors channel
It was a record year on 2020 for companies engaged in semiconductor production , according to the analysis published by TrendForce. Preliminary estimates speak of a growth of 23, 7% compared to the previous year , for a total value of 84, 6 billion dollars.
The global pandemic has brought about these results. , with the market leading to higher than expected demand for technological products and all producers trying to keep up with consumer demands by also preparing for the additional demand expected for 2021.
The prospects for the year just started are in fact one continuous growth in the semiconductor market, with 3 dynamics that will influence it for the most . The first is the expected economic recovery during the year; the second is the disputes between China and the US regarding commercial tariffs and the third a continuation of remote work at least for the first half of the year, a period in which mass vaccination of the world population is expected.
The global demand is therefore expected growth, with estimates ranging from 2% to 9% depending on how the market will move . Strong demand is expected for consumer electronics products and mobile devices, alongside that for new communication solutions such as 5G networks or WiFi 6 connectivity in the home.
If for the first 6 months of 2021 the demand continues to be sustained, for the second half of the year there are still no solid forecasts . Sustained demand for semiconductors, with market growth, is still linked to the general economic situation. If there will be a progressive return of workers within companies, with less activity carried out remotely, it is conceivable that the demand for semiconductors may record a decrease compared to the volumes reached in the last 12 months.
Hence TrendForce’s estimate for 2021, with a certainty: overall production will be high but not to the point of balancing the demand from the market . Product shortages will therefore continue to be present for most of the product categories, making it not always easy for consumers to complete their desired purchases at the desired prices.