Memory is leading the way in 2021 while non-memory is having mixed results but with end-markets supply-constrained for the rest of 2021 at least the market research firm expects the current strength to roll over into 2022. Semiconductor Intelligence is predicting 26 percent year-on-year growth in 2021 for the global chip market – despite chip supply shortages – and 15 percent growth in 2022 as the shortages unwind.

This is higher than the long-term average for the semiconductor industry of high single-digit percentage growth.

Chip vendors ranked by 2Q21 revenue. Source: Semiconductor Intelligence LLC

The memory companies performed well in 2Q22 on a sequential basis achieving growth of 22 percent collectively. Of the non-memory companies MediaTek at 16.3 percent, AMD at 11.8 percent and Nvidia at 11.3 percent did well. However, Intel declined 0.2 percent and STMicroelectronics declined 0.8 percent. Collectively the non-memory companies grew 3 percent from 1Q 2021 to 2Q 2021.

The outlook for 3Q 2021 is generally solid. Of the nine companies providing guidance for the quarter, three expect double-digit growth versus 2Q 2021 (Qualcomm, Micron Technology and NXP Semiconductors) and three are around 7 percent (AMD, Infineon, and STMicroelectronics). MediaTek is projecting 2.5 percent growth, Texas Instruments is guiding for no growth, and Intel is calling for a 2.7 percent decline. Both Texas Instruments and Intel cited capacity limitations.

Global chip market forecasts for 2021 and 2022. Source: Semiconductor Intelligence LLC.

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