Semiconductor growth increased 25.1% in 2021, according to preliminary results by Gartner. That rise saw the semiconductor industry reach a total of $583.5 billion, which is the first time annual revenue has crossed $500 billion within a year. The increase occured despite the ongoing global chip shortage.
Growth in the semiconductor market occurred across several segments, and particularly grew in the automotive industry, according to Andrew Norwood, research vice president at Gartner. “As the global economy bounced back in 2021, shortages appeared throughout the semiconductor supply chain, particularly in the automotive industry,” said Norwood. “The resulting combination of strong demand as well as logistics and raw material price increases drove semiconductors’ average selling price higher (ASP), contributing to overall revenue growth in 2021.”
5G smartphone sales also drove semiconductor revenue in 2021. While unit production was $250 million in 2020, it spiked to $555 million in 2021.
The top-ten semiconductor vendors stayed largely the same across 2020 to 2021, though there were some notable changes within the top of the rankings. For the first time since 2018, Samsung Electronics passed Intel and earned the top spot.
Memory was the highest-performing segment. Its revenue increased $42.1 billion compared to 2020. The revenue from memory accounted for 33.8% of all semiconductor revenue growth in 2021.
