The global chip industry has shrugged off the global pandemic and hard-hit economies with a significant rise in sales in 2020.
Although the car industry closed down for nearly a quarter and is still struggling to recover, other parts of the market saw strong demand. This has led to a growth of 6.5 percent over the year to $439.0bn. Malcolm Penn at Future Horizons is predicting 18 percent growth for 2021.
Global sales for the month of December 2020 were $39.2 billion, an increase of 8.3 percent compared to the December 2019 total and 2.0 percent less than the total from November 2020. Fourth-quarter sales of $117.5 billion were 8.3 percent more than the total from the fourth quarter of 2019 and 3.5 percent higher than the total from third quarter of 2020.
The SIA represents 98 percent of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms. While the US saw strong growth, Europe was hit harder with a 6 percent fall in revenues.
At the same time the SIA called for US government support for semiconductors.
“Global semiconductor sales increased moderately on an annual basis in 2020, weathering a challenging macroeconomic environment brought on by the pandemic and other factors,” said John Neuffer, SIA president and CEO.
“While global demand for semiconductors is on the rise, the share of global chip production done in the U.S. has declined from 37 percent in 1990 to 12 percent today, and that disparity will only intensify without U.S. government action to level the global playing field,” he said.
“It’s imperative the federal government fully fund incentives for domestic chip manufacturing and investments in chip research so the U.S. can benefit from growing demand and produce more semiconductors needed to strengthen our economy, national security, and critical infrastructure.”
On a regional basis, sales into the Americas market stood