Semi-content in electronic systems hit an all-time high in 2021


The value of semiconductor content in electronic systems reached 33.2% last year, surpassing the previous record set in 2018, according to a new 2022 report.

January 12, 2022 – Historically, the driving force behind the higher average annual growth rate of the semiconductor industry relative to the electronic systems market is the increasing value or content of semiconductors used in electronic systems (Figure 1 ). With growth rates of global unit shipments of cellphones, automobiles and PCs showing maturity and slowing down over the past 10 years, the disparity between the 2011-2021 CAGR of 3.5% recorded in the market for electronic systems and the 2011-2021 CAGR of 6.5% posted by the semiconductor market is directly due to the increase in the content / value of semiconductors in electronic systems, according to the January report Semiconductor Industry Flash Report that IC Insights will publish this week as part of its 2022 McClean Report a service.

Figure 1

The first recorded year that showed an increase in semiconductor content in electronic systems in a year when the semiconductor market declined was 2009. This situation was repeated once again in 2015. The total semiconductor market shrank by 1% but the semiconductor content figure fell from 24.5% in 2014 to 24.8% in 2015. Until 2017, 2010 was the record level of the semiconductor content in electronic systems at 25.9%. This brand was easily surpassed in 2017 with a figure of 28.9%. As reported, the semiconductor content figure surged again in 2018 and hit a new high of 31.1%. However, driven by a 25% increase in semiconductor sales last year, semiconductor content in electronic systems reached 33.2% in 2021, a new all-time high.

Of course, the tendency for higher and higher semiconductor value in electronic systems has a limit. Extrapolating an annual increase in the percentage of semiconductors indefinitely would, at some point in the future, result in the semiconductor content of an electronic system reaching 100%. Whatever the ultimate cap, once reached, the average annual growth of the semiconductor industry will closely follow that of the electronic systems market (i.e. around 4% per year). In the opinion of IC Insights, the “cap” is at least 40% but is not expected to be reached in the next five years.

Report Details: The McClean Report 2022

The 2022 edition of The McClean Report – A Comprehensive Analysis and Forecast of the Semiconductor Industry, will be released this week. A subscription to The McClean Report the service includes the month of january Semiconductor Industry Flash Report, which provides customers with IC Insights’ initial overview and forecast of the semiconductor industry for this year through 2026. In addition to the January edition Semiconductor Industry Flash Report, Quarterly Updates to the report will be released in February, May, August and November of this year. An individual user license for the 2022 edition of The McClean Report is available for $ 5,390 and a multi-user global enterprise license is available for $ 8,590. The Internet access password and the information available for download will be available until November 2022.

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