Analyst agency IDC says the worldwide semiconductor trade is displaying indicators of “potential for overcapacity in 2023 as bigger scale capability expansions start to come back on-line in the direction of the tip of 2022”.
A short be aware on the trade’s prospects states: “devoted foundries have been allotted for the remainder of the yr , with capability utilization at practically 100 per cent.
“Entrance-end capability stays tight however fabless suppliers are getting the manufacturing they want from their foundry companion,” the be aware states, including “Entrance-end manufacturing is beginning to meet demand in 3Q.”
However we’re not out of the woods, as a result of the agency predicted “bigger points and shortages will stay in back-end manufacturing and supplies”. The be aware would not say if, or how, materials shortages will ease by 2023. However it’s bullish on manufacturing capability catching as much as demand in that yr.
Prices are additionally predicted to rise. “Semiconductor wafer costs elevated in 1H21 and IDC expects will increase to proceed for the remainder of 2021 on account of materials prices and alternative price in mature course of applied sciences,” the be aware states.
The be aware additionally presents some market predictions for 2021, amongst them:
- Shortages in automotive silicon will probably be “mitigated by yr finish”, with 22.8 per cent income development to observe;
- 24.6 per cent income development for semiconductors utilized in x86 servers;
- An unsurprising increase in 5G silicon, with income anticipated to develop by 128 per cent, slightly sooner than the 28.5 per cent for the general cell phone market;
- Pocket book laptop semiconductor income development of 11.8 per cent.
“Total, IDC predicts the semiconductor market to succeed in $600 billion by 2025 – representing a CAGR of 5.3 per cent by the forecast interval,” the be aware concludes. “That is greater than the standard three to 4 per cent mature development seen traditionally.” ®