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    IDC predicts 17.3% growth in semiconductor parts market by 2021 - Reaching surplus capacity by 2023
    3 Days, 2 Hours ago


    Tags:  IDC  -  Statistics

    The IDC Research Institute released its forecast for the semiconductor component market by the end of 2023 on Monday, September 20, 2021. According to IDC estimates, the semiconductor product market is expected to grow by 17.3% in 2021 (compare with 10.8% growth in 2020). As you probably know, the industry is currently facing a global shortage of semiconductor components, but according to IDC, by mid-2022, the situation will return to normal and reach equilibrium. IDC experts believe that the expansion of production capacity on a larger scale is key by the end of this year and we are expected to reach excess capacity in 2023.

     IDC predicts 17.3% growth in semiconductor parts market by 2021 - Reaching surplus capacity by 2023 Overview of the semiconductor market from 2001 to 2020 and forecast by 2025

    IDC experts market growth Semiconductor components are attributed to items such as mobile phones, notebooks, servers, cars, smart homes, gaming, wearables, Wi-Fi access points, as well as rising memory prices. Also, with the acceleration of capacity growth from the last quarter of this year, the trend of improving IC shortages is expected to continue. According to IDC Vice President Mario Morales, the market demand for semiconductors remains intact, not only in the interest of component companies, but also in production growth in many markets. The target can also be good growth for the semiconductor components market.

    Despite the current wave of COVID-19, demand for semiconductor components remains strong. According to IDC, the factories dedicated to the production of these parts will continue to operate until the end of this year with a capacity of about 100%. Final production capacity is still tight, but suppliers without factories deliver the production they need through their partners. The front-end manufacturing process is expected to meet market demand in the third quarter of this year, but major problems and major shortages remain in the final stages of back-end manufacturing.

    IDC estimates that revenue from sales of 5G semiconductor components is expected to increase by 128% by the end of this year, with a 28.5% increase in mobile semiconductor component revenue. Revenue from sales of semiconductor components used in game consoles, smart homes and wearables will also increase by 34%, 20% and 21%, respectively. Due to the reduction of shortages by the end of 2021, the sales revenue of semiconductor parts in the automotive sector is likely to grow by 22.8%. Revenue from sales of semiconductor components used in X86 notebooks and servers will also grow by 11.8% and 24.6%, respectively.

     IDC predicts 17.3% growth in semiconductor parts market by 2021 - Reaching surplus capacity by 2023

    Finally, the price of silicon tablets needed to make semiconductor parts has increased in the first half of 2021 And according to IDC forecasts, this upward trend will continue until the end of this year. IDC experts attribute this to rising raw material prices as well as opportunity costs in evolving technologies. In total, IDC estimates that the market value of semiconductor components will reach $ 600 billion by 2025. If this forecast is correct, the compound annual growth rate of this market in the mentioned period will be equal to 5.3%. Needless to say, the typical growth of this market (observed in previous years) has been something between 3 and 4 percent.





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