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Global Silicon Wafer Shipments to Reach a Record High in 2022: SEMI

“Silicon wafer shipments are recovering this year despite pressure from geopolitical tensions, the shifting global semiconductor supply chain and the COVID-19 pandemic”

Global silicon wafer shipments are set to increase 2.4 per cent year-over-year in 2020, with growth continuing in 2021 and shipments reaching a record high in 2022. These findings were reported by SEMI in its annual silicon shipment forecast for the semiconductor industry.

“Silicon wafer shipments are recovering this year despite pressure from geopolitical tensions, the shifting global semiconductor supply chain and the COVID-19 pandemic. With the pandemic accelerating digitization to transform businesses and their delivery of services worldwide, we expect continued growth over the next two years,”said Clark Tseng, director of Industry Research and Statistics at SEMI.

Semiconductor industry remains resilient

North America-based manufacturers of semiconductor equipment posted $2.75 billion in billings worldwide in September 2020 (three-month average basis), according to the September Equipment Market Data Subscription (EMDS) Billings Report published by SEMI. The billings figure is 3.6 per cent higher than the final August 2020 level of 2.65 billion, and is 40.3 per cent higher than the September 2019 billings level of $1.96 billion.

“September billings of North America-based semiconductor equipment manufacturers mark another month of growth. The semiconductor industry remains resilient despite challenges posed by the pandemic and geopolitical tensions,” aid Ajit Manocha, SEMI president and CEO.

The global semiconductor market size, as per a report by Fortune Business Insights, is projected to reach $726.73 billion by 2027 as per a report by Fortune Business Insights. It will exhibit a CAGR of 4.7 per cent during the forecast period. The report noted ,”One of the biggest challenges facing the semiconductor market growth is the on-going trade war between the United States and China. The Trump administration announced in April 2018 that it will impose tariffs amounting to $50 billion that had a direct bearing on this industry as prices of components and equipment imported from China rose dramatically.”

Chips produced in China, as per the report, will be subjected to 25 per cent tariff, even if the components had been made in the US. This led to a decline in sales in the US. For example, the Semiconductor Industry Association (SIA) reported a 28.8 per cent contraction in their sales, which fell to USD 6.29 billion in August 2019.

Asia Pacific is expected to dominate the semiconductor market share during the forecast period. This is due rise in demand for advanced electronics and components across the region. The region leads also due to expanding chip manufacturing operations in China, which holds a significant share in the global industry.

Source: https://www.electronicsb2b.com/