Global chip sales in 2021 top half a trillion dollars for first time
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T-Head’s in-house semiconductor company, Alibaba, displayed the server chip Yitian710 at the Apsara conference 2021. It was presented in Hangzhou, China, on October 19, 2021.
Visual China Group | Visual China Group | Getty Images
According to top industry associations, global semiconductor sales exceeded half a billion dollars. Companies increased their production in order to satisfy demand during a chip shortage.
The record global sales of the semiconductor industry reached $555.9 million in 2021. This is an increase 26.2% from last year, according to the U.S.-based Semiconductor Industry Association.
In 2013, the semiconductor industry produced a record 1.15 billion units.
John Neuffer (SIA President and CEO) stated, “In 2021 amid the continuing global chip shortage,” that semiconductor companies substantially increased production to unprecedented amounts to address persistently large demand. This resulted in record-breaking chip sales and units shipped.
The demand for semiconductor manufacturing is expected to increase significantly over the next few years as more chips are integrated in vital technologies.
Global chip shortages impacted all industries, from automakers to consumer electronics. Companies were unable to meet the increasing demand and shortfall of products.
The crisis has also caused governments around the world to rush to get chip supplies, and invested to make semiconductor production more accessible.
In the last year, President Obama was in office. Joe BidenAs part of the aforementioned, $50 billion has been earmarked for research and manufacturing in semiconductors. $2 trillion economic stimulus package. A bill commonly known as CHIPS for America ActIt is currently navigating the legislative process. The goal of the legislation is to give incentives for advanced research and development, and to secure the supply chain.
A new initiative was announced by the European Commission (the executive arm of EU), this month. European Chips ActThat will make it possible to invest 15 billion euros (17.11 billion dollars) more in public and private investment until 2030.
According to the SIA, Semiconductor sales in China topped any other market in 2021 with $192.5 billion, an increase of 27.1%.
China has been focusing on boosting its domestic chip industryThese tensions have been a factor in China’s recent growth over the past few years. Although Beijing is committed to increasing its own self-sufficiency, it has not made semiconductor production a priority. China remains heavily reliant on foreign technology.
Americas had the highest growth in sales, with 27.4% for 2021. Europe was next with 27.3% of growth.
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