According to the US Semiconductor Industry Association (SIA), for the first time ever, global semiconductor sales have surpassed over half a billion dollars in 2021. The top industry body which made the revelation on Monday said that global semiconductor industry sales reached a new record of $555.9 billion, up 26 percent YoY. It added that this surge can be attributed to the increase in demand that caused companies around the world to increase their supply so as to be able to meet up with the raging demand for semiconductor chips globally.
According to the Semiconductor Industry Association (SIA), the semiconductor industry shipped a record of 1.15 trillion semiconductor units in 2021. Speaking on the new record, John Neuffer, President and CEO of the industry body said that “In 2021, amid the ongoing global chip shortage, semiconductor companies substantially ramped up production to unprecedented levels to address persistently high demand, resulting in record chip sales and units shipped. Demand for semiconductor production is projected to rise significantly in the years ahead, as chips become even more heavily embedded in the essential technologies of now and the future”.
The raging global chip shortage which the Coronavirus pandemic heightened took the world by a storm. It caused a shortage in products ranging from consumer electronics to automobiles. Semiconductor makers were literally on their toes trying to meet up with the astronomically increased demand for their products. Government and lawmakers around the world were not left out. A handful of them made investments in the industry. For instance, in 2021, US President Joe Biden approved $50 billion for semiconductor manufacturing and research as part of a $2 trillion economic stimulus package.
According to the SIA, China’s semiconductor sales ran into a total of $192.5 billion in 2021 and was up 27 percent YoY and had the largest share of the industry sales. This is expected as the country is home to some of the world’s biggest chipmakers, even though it is heavily reliant on foreign technology. The country has, over the last few years, focused on boosting its domestic chip industry. Beijing, for instance, increased efforts at becoming semiconductors sufficient.
America has the largest sales increase. It recorded growth of 27.4 percent YoY in 2021. Europe followed with an increase of 27.3 percent YoY.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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