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Global Semiconductor Revenue Grows by 25% in 2021, Surpassing $500 Billion for the First Time

Raevenlord

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Global semiconductor sales revenue grew by a more than comfortable 25% in 2021, hitting a new record above $500 Billion for the first time. The data, part of Gartner's preliminary report on the state of the industry in 2021, bookends yet another year plagued with shortages and too little supply for the thirst of the consumer and business sectors. Naturally, supply constraints have led to higher ASP (Average Selling Prices) for the hardware that does get manufactured and distributed, as we've seen all too well in the graphics card market.

"As the global economy bounced back in 2021, shortages appeared throughout the semiconductor supply chain, particularly in the automotive industry," said Andrew Norwood, research vice president at Gartner. "The resulting combination of strong demand as well as logistics and raw material price increases drove semiconductors' average selling price higher (ASP), contributing to overall revenue growth in 2021.





Product segmentation and manufacturing priority have also naturally helped in increasing ASP prices; as companies grappled with insufficient manufacturing capability to meet demand, they turned to higher-end, more expensive products (Ryzen 3, where are you?), which also gave a slight push towards the revenue record.

Samsung has, in the meantime, dethroned Intel again as the biggest semiconductor manufacturer adjusted for revenue, as it posted an above-average 31.6% growth compared to 2020, mostly on the back of strong NAND and DDR manufacturing. Intel, who is dethroned, does so with a heavy fall from grace: it only achieved a 0.5% revenue growth YoY, adding $1 Billion to its coffers - the lowest of the entire top 25 listing as put together by Gartner. Samsung, on the other hand, increased its revenue by around $22 Billion.

The picture of the global semiconductor market for 2021 painted a particularly rosy picture for the memory IC market, which saw the greatest growth, following the overall technological trend of increasing memory pools primarily due to increased server deployments by hyperscale cloud providers to satisfy remote working, learning and entertainment needs, as well as a surge in end-market demand for PCs and ultramobiles.

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Wow, semiconductors finally surpassed the annual revenue of the illegal drugs market
 

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I feel like someday we are going to wake up to a headline that says, "Silicon factories are shut down due to lack of pure sand source material"
 
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Unsurprising with all the price hikes.
 
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