The global semiconductor market is expected to grow 10.9 percent in 2021 due to strong demand for notebook computers, internet-related devices and other electronic products, according to a major government think tank.

The semiconductor market's value is expected to reach US$488.3 billion this year, up 10.9 percent from 2020, according to the Institute for Information Industry's Market Intelligence & Consulting Institute (MIC).

The forecast was given by MIC during a forum held online on May 19.

The market is expected to grow another 12.7 percent in 2022 to US$550.3 billion, driven mainly by higher demand for notebook PCs, 5G applications, high performance computing, and automotive electronics, said Cheng Kai-an, a senior MIC industry analyst.

This growth spurt can be attributed to the COVID-19 pandemic, the U.S.-China trade conflict, and robust demand for semiconductor devices, resulting in price increases in peripheral sectors, such as chip foundries and the packaging and testing sector, Cheng said.

Semiconductor foundries are expected to be running at full capacity in the second half of the year amid strong demand for finished products, Cheng said, but bringing the COVID-19 pandemic under control will be key to the sector's development.

MIC forecast the production value of Taiwan's semiconductor industry at NT$3.26 trillion (US$116.94 billion) this year, which would be up 11.4 percent from NT$2.93 trillion last year.

That optimism reflects increasing demand for notebook PCs and other devices as people have spent more time working, studying, and being entertained at home amid the pandemic and anticipated growth in demand for 5G services and automotive ICs in the second half, Cheng said.

Also, the global chip shortage seen this year because of demand for semiconductors surging far beyond supply is expected to continue into next year, Cheng said.

By: DocMemory
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