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Semiconductor Computing Segment Outperforms Market in 2020



Following the SIA, the calculations related to the semiconductor industry were published by the analytical company IDC. While there are some discrepancies in the two reports, the main point is that semiconductor sales are up in 2020.

Despite the impact of COVID-19 on the global economy, the semiconductor market performed better than expected in 2020, IDC said. This has been fueled by the growth of cloud computing and the increased demand for devices needed for remote work and learning.

In 2020, the semiconductor market as a whole reached $ 442 billion, which is 5.4% more than in 2019. The DRAM and NAND markets also recovered from a failed 2019, gaining 4% and 32.9%, respectively. IDC predicts that the semiconductor market will reach $ 476 billion in 2021, an increase of 7.7%. Vaccinations and a gradual economic recovery will boost growth.

The experts note that the segment of semiconductor products for computing systems, such as PCs and servers, outpaced the semiconductor market as a whole, increasing by 10.9%, to 152 billion dollars. IDC predicts that in 2021 it will grow by 6.3% to $ 161 billion.

Smartphones are the second largest growth driver, highlighting the acceleration of 5G-enabled models. Healthy competition from manufacturers of SoC 5G has led to the fact that devices operating in the next generation networks were presented in a wide price range and were able to reach a larger number of consumers. Although sales of smartphones as a whole fell by more than 5%, revenues from semiconductor products for them increased by about 3%. It is expected that this year 5G smartphones will occupy about 30% of the market, and the semiconductor element base for them will account for almost 54% of revenue in this segment. IDC predicts that smartphone semiconductor revenues will grow 11.4% in 2021 to $ 128 billion.

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