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NAND flash memory market soars as demand rises

NAND flash revenue will break an all-time record this year. Despite an expected 1 per cent decline in average selling prices, the global NAND flash memory market will post strong sales growth and NAND revenue will grow 22 per cent to $67.1 billion in 2021 as unit shipments increase 23 per cent, according to researcher IC Insights. In 2020, unit shipments increased only 4 per cent but sales soared 25 per cent to $55.1 billion because of a 21 per cent increase in the average selling prices. This year revenue growth will be strong despite a 1 per cent decline…

Semiconductor distributors see strong demand, higher sales

Integrated circuit and discrete semiconductor revenue growth for distributors may top 25 per cent in 2021. Distributors that specialize in semiconductors or derive a large percentage of their revenue from sales of integrated circuits and discretes are posting strong revenue growth in 2021 and some may post record chip revenue. Demand for semiconductors is robust across a wide range of customer segments including industrial, wireless communications, consumer, computer, automotive, commercial, aerospace and defense. Strong demand has outpaced production capacity resulting in higher prices, which is contributing to revenue growth for distributors. Distributors are seeing strong sales of microcontrollers, MOSFETs, power…

Semiconductor midyear outlook: Chip revenue will rise nearly 20% in 2021

Strong revenue growth and robust demand is compelling chipmakers to add production capacity which should ease tight supply conditions later this year. The worldwide semiconductor market will increase 19.7 per cent to $527 billion in 2021 because of strong demand from multiple customer segments, limited supply and rising prices for some chips. Memory IC revenue, including NAND flash and DRAM, will rise 31.7 per cent, while sensor sales growth increases 22.4 per cent and analog IC revenue grows 21.7 per cent, according to the midyear outlook of World Semiconductor Trade Statistics (WSTS). Most other semiconductor products will post double-digit sales…

Distributors say IoT will drive sales growth opportunities

Growing use of IoT, especially in industrial applications, will result in greater component demand over the next five years. Most electronics distributors can’t pinpoint how much Internet of Things (IoT) applications are impacting component sales but most believe IoT will become a more important driver as more consumer and commercial devices and factory automation equipment become IoT capable. Much of the sales growth of components used in IoT applications will come from companies deploying IoT in factories because IoT analytics can identify potential problems in production equipment before they become more serious and cause line shutdowns. In fact, a survey…

Communications including 5G will drive the components market

While electronics content in cars and trucks is increasing, the auto industry will continue to account for a relatively small percentage of semiconductor sales over the next five years. It’s no secret that electronics buyers in the automotive industry have been scrambling to purchase microcontrollers, power management ICs and other semiconductors because of tight supply after production of many components and finished goods slowed down last year because of the COVID-19 pandemic. Exacerbating the problem for auto industry buyers that electronics content in vehicles is rising as more electronics systems are being designed into more cars and more electric vehicles…

Business booms for high-service distributors

An increase in design engineering activity and tight supply of chips and other components is resulting in skyrocketing sales for high-service distributors. High-service electronics distributors have weathered the coronavirus pandemic with some reporting a 50 per cent increase in sales during the first five months of 2021. Most high-service distributors focus on design and sell small quantities of parts to engineers designing new products. Design activity has increased significantly in the first half of 2021. However, high-service distributors also report they are seeing strong sales from buyers at OEMs and electronics manufacturing services (EMS) providers who are looking for shortage…

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