Global semiconductor revenue is forecast to increase 13.6 percent to $676 billion in 2022, according to Gartner report.
The semiconductor average selling price (ASP) hike from the chip shortage continues to be a key driver for growth in the global semiconductor market in 2022.
Overall semiconductor component supply constraints are expected to gradually ease through 2022 and prices will stabilize with the improving inventory situation, said Alan Priestley, research vice president at Gartner.
Automotive applications will experience component supply constraints – particularly in microcontrollers (MCUs), power management integrated circuits (PMICs) and voltage regulators — extending into 2023.
Slowing growth in PCs, smartphones and server end markets is expected to slow down the growth of semiconductor revenue as semiconductor supply and demand gradually comes into balance during 2022.
The chip shortage will be a concern for the supply chain of electronics equipment in 2022 and will have different effects in major electronic equipment markets depending on different semiconductor device types.
Most semiconductor shortages eased in PCs and smartphones as production moved into the off season combined with increased semiconductor supply into the market. However, some semiconductor device types will continue to be in shortage in the automotive supply chain through late 2022.
The memory market will be the largest semiconductor device market through the forecast period and is projected to account for 31.4 percent of the overall semiconductor market in 2022.
DRAM and NAND are expected to be in undersupply in the second quarter of 2022. The NAND market will enter oversupply in the fourth quarter of 2022, while DRAM is expected to move into oversupply in the second half of 2023.
The combination of megabyte shipments and higher annual average ASPs this year will sustain revenue growth for both markets in 2022, with projected growth of 22.8 percent for DRAM and 38.1 percent growth for NAND.
Semiconductor revenue for smartphones is forecast to increase 15.2 percent in 2022, as 5G smartphone unit production is expected to grow by 45.3 percent in 2022, reaching 808 million units and representing 55 percent of all smartphones produced.
Migration from 4G to 5G from smartphone chipset vendors has led to a shortage in 4G system-on-chip integrated baseband ICs which began in the second half of 2021. Rising 5G-integrated baseband IC inventory will result in declining prices for 5G smartphones and accelerate the penetration of 5G during the forecast period.
