Gartner, Telecom News, ET Telecom

NEW DELHI: The global semiconductor revenue grew 26.3% year-on-year in 2021 to reach $595 billion driven by 5G smartphone launches and higher average selling price (ASP) of chips even as component shortages that continued to impact OEMs, according to Gartner, Inc. . “The events behind the current chip shortage continue to impact original equipment manufacturers (OEMs) around the world, but the 5G smartphone ramp up and a combination of strong demand and logistics/raw material price increases drove semiconductor average selling prices (ASPs) higher, contributing to significant revenue growth in 2021,” said Andrew Norwood, research vice president at Gartner, in a media statement on Thursday.

Samsung Electronics regained the top spot from Intel for the first time since 2018, the research firm said, adding that the Korean chipmaker’s revenue increased 28% in 2021.

Intel’s revenue, in contrast, declined 0.3%, and the Pat Gelsinger-led firm cornered a 12.2% market share. SK Hynix, the Korean dynamic random access memory (DRAM) chipmaker, grew 40.6% year-on-year and cornered the third spot in the market by revenue.

Global semiconductor revenue grows 26% to $565 billion in 2021: Gartner
Gartner noted that the most significant shift among the semiconductor vendor ranking in 2021 was HiSilicon dropping out of the top 25. “HiSilicon’s revenue declined 81%, from $8.2 billion in 2020 to $1.5 billion in 2021,” said Norwood. “This was a direct result of the US sanctions against the company and its parent company Huawei.”

This also impacted China’s share of the semiconductor market as it declined from 6.7% market share in 2020 to 6.5% in 2021. South Korea had the largest increase in market share in 2021 as strong growth in the memory market propelled South Korea to garner 19.3 % of the global semiconductor market,” Norwood said.

Gartner stressed that 2021 saw stronger demand return to the automotive and industrial markets compared to the weak, COVID-disrupted market in 2020. “The automotive semiconductor market outperformed all other end markets, growing 34.9% in 2021. Wireless communications, which is dominated by smartphones, saw a growth of 24.6%.”

The number of 5G handsets produced reached 556 million in 2021, up from 251 million units in 2020, and enterprises upgraded their Wi-Fi infrastructure for employees heading back to the office.

Driven by DRAM, memory accounted for 27.9% of semiconductor sales in 2021 and experienced 33.2% revenue growth, increasing $41.3 billion over the previous year, the research firm said.

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