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Gartner forecasts worldwide semiconductor

revenue to grow 13.6% in 2022

Component supply constraints expected to gradually ease

through 2022

lobal semiconductor revenue is projected to total market. However, some semiconductor device types will
$676 billion in 2022, an increase of 13.6% from continue to be in shortage in the automotive supply chain
G2021, according to Gartner. through late 2022.
“The semiconductor average selling price (ASP) “Although unit production of automotive vehicles will
hike from the chip shortage continues to be a key grow below expectation at 12.5% in 2022, semiconductor
driver for growth in the global semiconductor market device ASPs are expected to remain high due to continued
in 2022, but overall semiconductor component supply tight supply driving the automotive semiconductor market
constraints are expected to gradually ease through to double-digit growth (19%) in 2022,” said Priestley.
2022, and prices will stabilise with the improving “Automotive HPC, EV/HEV and advanced driver assistance
inventory situation,” said Alan Priestley, research vice systems will lead the growth in automotive electronics
president at Gartner. sectors through the forecast period.”
Overall, the outlook for global semiconductor revenue
has been increased from the previous quarter’s forecast Memory market to lead semiconductor revenue
by $37 billion, to $676 billion (see Table 1). Automotive growth in 2022
applications will continue to experience component supply The memory market will remain the largest semiconductor
constraints - particularly in microcontrollers (MCUs), device market through the forecast period and is projected
power management integrated circuits (PMICs) and to account for 31.4% of the overall semiconductor market in
voltage regulators — extending into 2023. Slowing growth 2022. DRAM and NAND are expected to be in undersupply
in PCs, smartphones and server end markets is expected in the second quarter of 2022. The NAND market will enter
to gradually slow down the growth of semiconductor oversupply in the fourth quarter of 2022, while DRAM is
revenue as semiconductor supply and demand gradually expected to move into oversupply in the second half of
comes into balance during 2022. 2023. The combination of megabyte shipments and higher
annual average ASPs this year will sustain revenue growth
Chip shortage concerns continue in some sectors for both markets in 2022, with projected growth of 22.8%
The chip shortage will continue to be a concern for the for DRAM and 38.1% growth for NAND.
supply chain of electronics equipment in 2022 and will
have different effects in major electronic equipment Migration to 5G expected to spur growth
markets depending on different semiconductor device Semiconductor revenue for smartphones is forecast to
types. Most semiconductor shortages eased in PCs and increase 15.2% in 2022, as 5G smartphone unit production
smartphones as production moved into the off season, is expected to grow by 45.3% in 2022, reaching 808 million
combined with increased semiconductor supply into the units and representing 55% of all smartphones produced.

Table 1. Semiconductor Revenue Forecast, Worldwide, 2021-2023 (Billions of US Dollars)

2021 2022 2023

Revenue ($B) 595.0 676.0 700.5
Growth (%) 26.3 13.6 3.6
Source: Gartner (April 2022)

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