Semiconductor unit shipments are forecast to increase to 1,005.8 billion devices in 2016 from 32.6 billion in 1978, which amounts to average annual growth of 9.4% over the 38 year period and demonstrates how increasingly dependent the world is on semiconductors. From 2008 to 2013, the average annual growth rate of semiconductor units cooled to only 5% due to global economic doldrums, but stronger 8% annual growth is forecast from 2013 to 2018 as global economies regain momentum and a healthier market prevails for electronic systems, IC Insights indicated.

The strongest increase in semiconductor unit growth over the time span was 34% in 1984; the biggest decline was 19% in 2001 following the dot-com bust. Semiconductor unit shipments first topped the 100-billion mark in 1987, exceeded 500-billion units for the first time in 2006 and then surpassed 600-billion units in 2007 before the global financial meltdown and recession caused semiconductor shipments to fall in 2008 and 2009, the only time the industry has experienced a back-to-back decline in unit shipments. Semiconductor unit growth then surged 25% in 2010, the second-highest growth rate since 1978. IC Insights forecasts semiconductor unit growth of 8% in 2014, 11% in 2015, and 12% in 2016, which will result in annual shipments surpassing one trillion devices for the first time in 2016.

Interestingly, the percentage split of IC and O-S-D devices within total semiconductor units has remained fairly constant despite advances in integrated circuit technology and the blending of functions to reduce chip count within systems. In 1978, O-S-D devices accounted for 79% of semiconductor units and ICs represented 21%. Almost 40 years later in 2016, O-S-D devices are forecast to account for 74% of total semiconductor units, compared to 26% for ICs.

By: DocMemory
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