This will be down from a record high of 31.1 percent in 2018 and is mainly due to falling average selling prices of semiconductor components and particularly of memories.

IC Insights forecasts that the 2019 global electronic systems market will grow 4 percent to $1,680 billion. In contrast, the worldwide semiconductor market is expected to drop by 12 percent this year to $443.8 billion after exceeding the $500 billion level for the first time in 2018. 

Semiconductor content of electronic systems versus time. Source: IC Insights.

With global unit shipments of cellphones, automobiles, and PCs showing maturity and slowing over the past 10 years, the disparity between the 3 percent 2008-2018 CAGR registered in the electronic systems market and the 7 percent 2008-2018 CAGR displayed by the semiconductor market is directly due to the increased content and value of semiconductors in electronic systems.

A rise in DRAM and NAND flash ASPs drove a surge in the semiconductor content of systems in 2017 and 2018. The memory component ASP jump of 56 percent in 2017 and 29 percent in 2018 is expected to go down by 33 percent in 2019. However, beginning in 2020, the semiconductor content percentage figure is expected to once again resume its climb and eventually reach a new high of 31.8 percent in 2023.

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