Semiconductor shortages in automotive will ease in 2022
Chipmakers are adding production capacity and demand is expected to weaken which will lead to improved supply conditions for semiconductor purchasers. Electronics purchasers in the auto industry can expect shortages of microcontrollers, MOSFETs and a range of other chips used in automotive systems to continue until the second half of next year and maybe longer. While integrated device manufacturers (IDMs) and foundries are adding semiconductor production capacity, much but not all of the investment is for chips produced on leading-edge technology nodes, such as 5nm, 7nm and 10nm and on 12-inch wafers. With a few exceptions, chips produced on such…
Distributors expand warehouse facilities, enhance web capabilities
Electronics distributors are enlarging distribution facilities or building new ones to attract new customers and better serve existing ones. Many electronics distributors are adding warehouse space, investing in automation equipment and enhancing their website capabilities to make it easier for buyers and engineers to find and purchase components. While there are allocations or long lead times for a wide range of semiconductors, passives and connectors, distributors say shortages won’t last forever. The extra warehouse capacity will be needed as more electronics is used in more products. Many distributors are expanding existing warehouse facilities and equipping facilities with a range of…
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…