Semiconductor Industry Update: Chip Shortage Will Be Eased in The Third Quarter of 2021
Manufacturing leaders, including the US and Germany, rely heavily on Taiwan for semiconductor chips. These countries are currently facing an intermittent shortage of chips. The shortage was the result of increased demand for electronics during the COVID-19 epidemic.
The Taiwanese Semiconductor Industry
The shipment value of the Taiwanese semiconductor manufacturing industry reached USD 15.2 billion in the fourth quarter of 2020, up 3.2% sequentially and 24.4% year-on-year, according to a new report. Based on current findings, the growth was attributed mainly to the bullish sales of foundries. Their sales contributed mainly from smartphone application ICs and HPC (High-Performance Computing) ICs, as well as notebook PC ICs.
Taiwanese Semiconductor Manufacturing Industry Shipment Value by Business Type, 1Q 2019 - 2Q 2021
Source: MIC
TSMC started to adopt the 5nm process into its fabrication process in the third quarter of 2020, marking a new chapter for 5nm chips. TSMC’s 5nm process chips in the fourth quarter of 2020 accounted for 20%, up from merely 8% in the third quarter.
Taiwanese Semiconductor Manufacturing Industry Report presents shipment value forecast and recent quarter review of the Taiwanese semiconductor manufacturing industry. The content of this report is based on primary data obtained from interviews and publicly available information.
OR
The Global Semiconductor Industry
Global semiconductor market value is estimated to reach USD 488.3 billion in 2021, up 10.9% compared to 2020, according to the new research report. The growth momentum will continue into 2022 with an annual growth rate of 12.7%, owing mainly to the surge in demand for notebook PCs, 5G, HPC (High-Performance Computing), and automotive electronics services. With increasing sales of electronic products, the demand for logic ICs also rises significantly over the years.
Taiwan Semiconductor Industry Shipment Value, 2014-2021
Source: MIC
The chip shortage is deteriorating in 2021, spanning from foundry to packaging and testing. As a result, the lead-time will extend and chip price will keep rising. Insufficient production will cause crowding-out effects on application ICs with fewer profit margins such as display driver ICs while the demand for automotive chips is increasing to perpetuate the shortage. Therefore, it has been expected that the chip shortage will be eased in the third quarter of 2021 but will not be resolved until 2022.
Other Semiconductor Industry Reports
-
Global Semiconductors Market
-
Semiconductor Manufacturing International Corporation - Strategy, SWOT and Corporate Finance Report
-
Taiwan Semiconductor Manufacturing Company Limited - Strategy, SWOT and Corporate Finance Report
-
NXP Semiconductors N.V. - Strategy, SWOT and Corporate Finance Report
-
Emerging Technology Sentiment Analysis Q1 2021 - Thematic Research