Global semiconductor revenue is projected to grow 13.6 per cent to a total of $676 billion in 2022, according to Gartner Inc.
“The semiconductor average selling price (ASP) hike from the chip shortage continues to be a key driver for growth in the global semiconductor market in 2022, but overall semiconductor component supply constraints are expected to gradually ease through 2022 and prices will stabilize with the improving inventory situation,” said Alan Priestley, research vice president at Gartner.
Overall, the outlook for global semiconductor revenue has increased by $37 billion from the previous quarter’s forecast to $676 billion. As per the report, automotive applications are likely to continue experiencing component supply constraints — particularly in microcontrollers (MCUs), power management integrated circuits (PMICs), and voltage regulators — extending into 2023.
“Slowing growth in PCs, smartphones, and server end markets is expected to gradually slow down the growth of semiconductor revenue as semiconductor supply and demand gradually comes into balance during 2022,” it said. Worldwide semiconductor revenue is projected to reach $700 billion by 2023.
Chip shortage concerns
As per Gartner, the chip shortage will continue to be a concern for the supply chain of electronics equipment in 2022 and will have different effects in major electronic equipment markets depending on different semiconductor device types.
“Most semiconductor shortages eased in PCs and smartphones as production moved into the off-season combined with increased semiconductor supply into the market. However, some semiconductor device types will continue to be in shortage in the automotive supply chain through late 2022,” it said.
As per Priestley, although unit production of automotive vehicles will grow below expectation at 12.5 per cent in 2022, semiconductor device ASPs are expected to remain high owing to continued tight supply driving the automotive semiconductor market to double-digit growth (19 per cent) in 2022.
“Automotive HPC, EV/HEV, and advanced driver assistance systems will lead the growth in automotive electronics sectors through the forecast period,” Priestley said.
Memory market to lead revenue growth in 2022
The memory market is expected to lead the semiconductor revenue growth in 2022. It is expected to remain the largest semiconductor device market through the forecast period and is projected to account for 31.4 per cent of the overall semiconductor market in 2022.
DRAM and NAND are expected to be in undersupply in the second quarter of 2022. “The NAND market will enter oversupply in the fourth quarter of 2022, while DRAM is expected to move into oversupply in the second half of 2023. The combination of megabyte shipments and higher annual average ASPs this year will sustain revenue growth for both markets in 2022,” as per the report.
The projected growth DRAM in 2022 stands at 22.8 per cent while that for NAND stands at 38.1 per cent. Further, semiconductor revenue for smartphones is forecast to increase 15.2 per cent in 2022, as 5G smartphone unit production is expected to grow by 45.3 per cent in 2022, reaching 808 million units and representing 55 per cent of all smartphones produced.
“Aggressive migration from 4G to 5G from major smartphone chipset vendors has temporarily led to a shortage in 4G system-on-chip integrated baseband ICs which began in the second half of 2021. Rising 5G-integrated baseband IC inventory will result in declining prices for 5G smartphones and accelerate the penetration of 5G further through the forecast period,” as per Gartner.
Published on
May 01, 2022
