IDC predicts: Semiconductor market to grow 17.3% in 2021 – reaching overcapacity in 2023
IDC experts attribute the growth of the semiconductor parts market to things like mobile phones, notebooks, servers, cars, smart homes, gaming, wearables, Wi-Fi access points, as well as memory price increases. Also, with the acceleration of capacity increase from the last quarter of this year, it is expected that the improvement process of IC shortage will also continue.
According to Mario Morales, one of the vice presidents of IDC, the story of the market demand for semiconductors remains untouched, and this is not only for the benefit of the companies that manufacture these parts, but also for the growth of production in many markets. The goal can also lead to a good growth for the semiconductor parts market.
Despite the current wave of COVID-19, demand for semiconductor components continues to be strong. According to IDC, the factories dedicated to the production of these parts will continue to work at 100% capacity until the end of this year. The final production capacity is still tight, but suppliers without factories complete their required production through their partners. It is expected that the initial production process (front-end manufacturing) can solve the market demand in the third quarter of this year, but the bigger problems and main shortages still remain in the final stages of production (back-end manufacturing).
According to IDC estimates, with a 28.5% growth in the revenue of mobile semiconductor components, the revenue from the sale of 5G semiconductor components is expected to increase by 128% by the end of this year. The income from the sale of semiconductor components used in game consoles, smart home and wearables will also grow by 34%, 20% and 21% respectively. Due to the reduction of shortages until the end of 2021, probably the revenue from the sale of semi-conductor parts in the automotive sector will also face a growth of 22.8%. The income from the sale of semiconductor components used in notebooks and X86 servers will also grow by 11.8% and 24.6%, respectively.
At the end, it should be mentioned, the price of silicon tablets needed to make semiconductor parts in the first half 2021 has increased and according to IDC’s forecast, this increasing trend will continue until the end of this year. IDC experts attribute this to rising raw material prices as well as the opportunity cost of advanced process technologies. In total, according to IDC estimates, the market value of semiconductor components will reach 600 billion dollars by 2025. If this forecast is correct, the compound annual growth rate of this market will be equal to 5.3% in the mentioned period. Needless to say, the usual growth of this market (observed in previous years) was between 3 and 4 percent.