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2021 Brings Record High for Semiconductor Content in Electronic Systems

AmandaK

Administrator
Staff member
According to the new 2022 report from IC Insights, the value of semiconductor content in electronic systems has set a new record at 33.2% which has surpassed the previous record from 2018.

The increasing value of semiconductor content has contributed to the steady annual growth of the semiconductor industry, which is shown in the figure below. While the global shipping rates of products such as cell phones and PCs have started to slow and reach their limit, semiconductor value has continued to grow.

According to the January Semiconductor Industry Flash Report that IC Insights will release this week as part of its 2022 McClean Report service, the difference between the 3.5% 2011-2021 CAGR registered in the electronic systems market and 6.5% 2011-2021 CAGR displayed by the semiconductor market is directly due to the increasing content/value of semiconductors in electronic systems.


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According to this graph from IC Insights in 2009 and in 2015 the semiconductor content value grew despite the decline of the semiconductor market in those years. In 2015 the semiconductor market declined by 1% while the semiconductor content figure rose from 24.5% in 2014 to 24.8% in 2015.

Another notable fact from this graph is that the 2010 record growth of 25.9% held strong until it was surpassed in 2017 at 28.9%. This record was also easily broken in 2018 with semiconductor content value at 31.1%. Despite the large drop to 26.5% in 2019, there has been a sharp increase in 2020 and then again in 2021, breaking the record at 33.2% semiconductor content value. IC Insights infers that this is mostly due to the 25% increase in semiconductor sales from the previous year.

This increasing trend of semiconductor value in electronic systems can only last for so long. It will eventually reach its limit. According to IC Insights this “ceiling” is at least 40%, but it is not expected to reach this limit within the next five years. Once this ceiling is reached the trend of annual growth for the semiconductor industry will begin to closely track the trend of the electronic systems market (about 4% growth per year).

Reference Article

Also read: COVID Still Impacting Electronics
 

Daniel Nenni

Admin
Staff member
What's included in the "electronic systems"? Thanks.

Without having the report I would look at the CES line up. It's very broad:

CES is Back – Partially

Cars are a good example. There are more ICs in traditional cars and of course EUVs. Appliances as well and other smart devices around the house. Who doesn't have a video doorbell?

I will also ask Bill for clarification.
 

Daniel Nenni

Admin
Staff member
What's included in the "electronic systems"? Thanks.

Our major categories of electronic systems are computer, communications, consumer, auto, industrial/other. Much of the data is compiled using government databases of electronic equipment production/sales in each individual country or region. As a result, different countries may have slightly different definitions of categorization. Since we only look at global totals, it works for our analysis.

Best regards,

Bill McClean
President, IC Insights
 

hist78

Well-known member
Our major categories of electronic systems are computer, communications, consumer, auto, industrial/other. Much of the data is compiled using government databases of electronic equipment production/sales in each individual country or region. As a result, different countries may have slightly different definitions of categorization. Since we only look at global totals, it works for our analysis.

Best regards,

Bill McClean
President, IC Insights
From microwave oven, home security/lighting, garage door opener, to cars, among many things we use daily I think there are plenty of space to grow semiconductor content.

I am getting too old to learn how to change the clock on the stove or microwave oven twice a year every year through those antique key button sequence.
 
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