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In a very rare event, 32 of the 33 major IC market categories defined by WSTS are forecast to enjoy an increase in sales this year, with 29 of the product categories expected to see significant double-digit gains, according to IC Insights. Strong demand across the entire IC market this year is projected to lift sales for the total IC market 24 percent and break through the $500 billion plateau for the first time in history.
Earlier this week, IC Insights raised its full-year forecast from a 19 percent increase to 24 percent. Even if excluding memory, the total IC market is expected to be up by 21 percent this year.
Continued per-bit pricing strength in the DRAM and NAND flash markets as well as a better than expected outlook for many of the logic and analog IC product categories are the driving forces behind the adjustment.
At the mid-point of 2021, chip production was returning to normal levels, but a surge in chip demand caused by the Covid-19 pandemic meant that ICs used in smartphones, computers, TVs, automobiles, and other end-use applications remained in short supply—an industry condition that could last well into 2022.
The IC market is forecast to see continued growth next year and again in 2023 when worldwide IC revenues are projected to exceed $600 billion for the first time. Throughout the forecast period, momentum is expected to surge for 5G connectivity, artificial intelligence, deep learning, virtual reality, and other emerging applications in mobile, data center and cloud-computer servers, automotive, and industrial markets, resulting in a robust IC market CAGR of 10.7 percent from 2020-2025.
Every major general-purpose analog and application-specific analog market segment tracked by IC Insights is expected to post a double-digit increase in 2021. The automotive application specific analog segment is forecast to lead the way in analog market growth this year with a 31 percent increase driven almost entirely by a 30 percent increase unit volume shipments.
For more information, please contact Bill McClean, President at IC Insights. Phone: +1-480-348-1133 email: bill@icinsights.com
