Semiconductors are on track for a new market-record high this year
IC Insights has revealed in their 2017 forecast the growth of semiconductor materials and the demand for them in the upcoming Mid-Year Update of the 2017 McClean Report. Semiconductor content and the global electronics market is believed to grow by 15 percent ($419 billion) and 2 percent ($1.5 billion) respectively.
In accordance, IC Insights has predicted that the semiconductor industry will enjoy a surge of demand which exceeds $500 billion by the year 2021. Once the forecasts for these markets come true, semiconductor content will reach a new market-record high of 28.1 percent in growth.
What’s the reason for the steady annual growth within the semiconductor sector? A higher value placed on semiconductor content in electronic systems. Though it has been predicted that the global unit shipment in electronic systems such as PCs, automobiles and cellphones will be sluggish, the trend for semiconductor material is due to the fact that more and more electronic systems are making use of semiconductors.
This trend has been steadily increasing in the span of 30 years or so, but the biggest jump in average content of semiconductors in lieu of electronic systems will be at its peak, thanks to the introduction of NAND and DRAM flash ASPs and a slow growth in electronic system sales in 2017. IC Insights has revealed that semiconductors will slow down in 2020 by 28.6 percent, then continue on to reach 28.9 percent a year after. The yearly growth percentage is mapped out at around .8 percentage points.
The rising trend of semiconductor value within electronic systems will have a limit. At one point, the annual growth of all kinds of semiconductors, including semiconductor FFU will reach 100%. When this growth ceiling is reach, it has been predicted that the industry will then closely mimic that of the electronic system sales (4 percent annual). IC Insight declared that the ceiling for semiconductors are at 30 percent but this will not be reached until after 2021.
Semiconductors and their value are becoming more and more important to the electronic systems industry. As more and more technologies and electronic products make use of semiconductors, we can safely say that the demand and growth will be rising steadily upwards.
Click here to see a copy of the 2017 McClean Report.
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