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Gartner Says Worldwide Semiconductor Revenue Grew 25.1% in 2021, Exceeding $500 Billion For the First Time

Daniel Nenni

Daniel Nenni

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Samsung Regained the No. 1 Spot; Intel Moved into the No. 2 Position​

Worldwide semiconductor revenue increased 25.1% in 2021 to total $583.5 billion, crossing the $500 billion threshold for the first time, according to preliminary results by Gartner, Inc.

“As the global economy bounced back in 2021, shortages appeared throughout the semiconductor supply chain, particularly in the automotive industry,” said Andrew Norwood, research vice president at Gartner. “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.

“The 5G smartphone market also helped drive semiconductor revenue, with unit production more than doubling to reach $555 million in 2021, compared to $250 million in 2020. U.S. sanctions imposed on Huawei resulted in other Chinese smartphone OEMs gaining share and fueling growth for 5G chipset vendors such as Qualcomm, MediaTek and Skyworks. Meanwhile HiSilicon, Huawei’s chip subsidiary, saw revenue decline from $8.2 billion in 2020 to around $1 billion in 2021.”

Samsung Electronics regained the top spot from Intel for the first time since 2018, with revenue increasing 31.6% in 2021 (see Table 1). Its memory revenue grew 34.2% in 2021, in line with the growth rate of the overall memory market. Intel dropped to the No. 2 position with 0.5% growth in 2021, delivering the lowest growth rate among the top 25 vendors.

Table 1. Top 10 Semiconductor Vendors by Revenue, Worldwide, 2021 (Millions of U.S. Dollars)

Semiconductor Revenue 2021 Gartner.jpg


Memory was again the best-performing device category, primarily due to increased server deployments by hyperscale cloud providers to satisfy remote working, learning and entertainment needs, as well as a surge in end-market demand for PCs and ultramobiles. Revenue increased $42.1 billion over 2020, which amounted to 33.8% of overall semiconductor revenue growth in 2021.

Within memory, DRAM had the best performance with revenue growth of 40.4% in 2021, increasing revenue to $92.5 billion in 2021. Strong demand from servers and PCs created a DRAM undersupply that drove double-digit ASPs through most of the year.
Gartner clients can read more in “Market Share Analysis: Semiconductors, Worldwide, Preliminary 2021.”

About Gartner for High Tech
Gartner for High Tech equips tech leaders and their teams with role-based best practices, industry insights and strategic views into emerging trends and market changes to achieve their mission-critical priorities and build the successful organizations of tomorrow. Additional information is available at www.gartner.com/en/industries/high-tech. Follow news and updates from Gartner for High Tech on Twitter and LinkedIn.
 
Crazy growth rates for QCOM, MDTK, NVDA, and AMD. The calls from this week puts 2022 bull semiconductor growth at about 50% of 2021. My personal guess is 10-15% growth and that jibes with the experts thus far. Of course everybody was wrong last year. Malcolm Penn of Future Horizons put us at 11%-24% so he was closest. I was at 15-20%. For 2022 Malcolm is at 4%-14% but for 2023 Malcolm sees us falling off a cliff. More on that later...

Future Horizons Semiconductor Growth Prediction 2021.jpg
 
Daniel Nenni said:
It should be included. Samsung Foundry is part of Samsung Electronics, right?
Click to expand...
It means that there’s double counting because Samsung foundry revenues for QCOM, NVDA are included in the respective companies’ revenues. It should really be a list of branded semiconductor products so only Samsung branded semi products should be counted. In that case, Intel is still No. 1.
 
triceratops24 said:
It means that there’s double counting because Samsung foundry revenues for QCOM, NVDA are included in the respective companies’ revenues. It should really be a list of branded semiconductor products so only Samsung branded semi products should be counted. In that case, Intel is still No. 1.
Click to expand...

Good point. Let me check on that.
 
triceratops24 said:
It means that there’s double counting because Samsung foundry revenues for QCOM, NVDA are included in the respective companies’ revenues. It should really be a list of branded semiconductor products so only Samsung branded semi products should be counted. In that case, Intel is still No. 1.
Click to expand...
I think it's more practical and meaningful to include foundries in the list. Without counting them, we will potentially underestimate the true size of semiconductor industry greatly.

For example, Apple, Google, Amazon, Tesla, IBM, and Microsoft design their own chips and use TSMC, Samsung, and Globalfoundries to manufacture those chips. They use those chips internally (on the cloud servers) or on the products they are selling (iPhones, MacBook, IBM mainframe and Tesla cars). Because they don't sell those chips separately to external customers, it's hard to put a value on them.

Using the money they spent on the foundry services as a gauge, we can measure the semiconductor industry much more accurately. For example, Apple alone spent about $11 to $14 billion at TSMC in 2021. Can we not include them in a semiconductor industry analysis?
 
hist78 said:
I think it's more practical and meaningful to include foundries in the list. Without counting them, we will potentially underestimate the true size of semiconductor industry greatly.

For example, Apple, Google, Amazon, Tesla, IBM, and Microsoft design their own chips and use TSMC, Samsung, and Globalfoundries to manufacture those chips. They use those chips internally (on the cloud servers) or on the products they are selling (iPhones, MacBook, IBM mainframe and Tesla cars). Because they don't sell those chips separately to external customers, it's hard to put a value on them.

Using the money they spent on the foundry services as a gauge, we can measure the semiconductor industry much more accurately. For example, Apple alone spent about $11 to $14 billion at TSMC in 2021. Can we not include them in a semiconductor industry analysis?
Click to expand...
+1 for this - I am actually surprised Apple isn't moving more silicon than AMD, in terms of revenue?
 
Xebec said:
+1 for this - I am actually surprised Apple isn't moving more silicon than AMD, in terms of revenue?
Click to expand...
My Apple's number is an estimate on the cost Apple paid to TSMC while AMD reported revenue included profit and lots of expenses.

If we use a 50% gross profit margin and assume there's a standalone company who is responsible for selling those TSMC made "Apple" chips to the iPhone's Apple, the standalone chip company can easily achieve $22 to $28 billion or more yearly revenue. They can be ranked as high as one of the top 5 semiconductor companies in the world.
 
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