Record high for semiconductor content in electronic equipment

Market news |
By Nick Flaherty

Semiconductor content in electronic equipment has grown to a record high of 33.3 per cent says a new report by IC Insights

The driving force behind the average annual growth rate of the semiconductor industry is the increasing value or content of semiconductors used in electronic systems

The slowing in global unit shipment growth rates of mobile phones, automobiles, and PCs raised concerns about the sustainability of high growth rates, but the increasing content in a wider range of equipment is helping to maintain the 6.5 per cent annual growth seen over the last decade.

This is a critical piece of data when looking at the future of the industry.

The first year on record that showed an increase in semiconductor content in electronic systems during a year when the semiconductor market declined was 2009.  This situation repeated itself once again in 2015 when content rose from 24.5 per cent in 2014 to 24.8 per cent in 2015.

Until 2017, 2010 was the all-time high for semiconductor content in electronic systems at 25.9 per cent. 2017 saw 28.9 per cent content in elctronic systems, surpassed in 2018 at 31.1 per cent.  The 25 per cent increase in semiconductor sales in 2021 was partly driven by semiconductor content in electronic systems incrasing further to 33.2 per cent.

However, the higher semiconductor value in electronic systems has a limit. IC Insights sees the ceiling as 40 per cent but is not expected to be reached within the next five years.

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