Although it took recent chip shortages to cement their “critical” status, semiconductors have now established their place as a truly essential industry. So what’s next? Our 2022 semiconductor outlook takes a closer look at four key trends expected to shape the industry in the year ahead.
In 2022, the global semiconductor chip industry is expected to reach about US$600 billion. But while it’s still dwarfed by farming, oil, and gas—industries that are worth an annual US$10 trillion and US$5 trillion in revenue respectively—80% of the world’s food or fuel doesn’t come from a handful of manufacturers concentrated in a just a few countries.
Across multiple end markets, the absence of a single critical chip, often costing less than a dollar, can prevent the sale of a device worth tens of thousands of dollars. Based on our analysis, the chip shortage of the past two years resulted in revenue misses of more than US$500 billion worldwide between the semiconductor and its customer industries, with lost auto sales of more than US$210 billion in 2021 alone.
Over the long run, semiconductor revenues are likely to oscillate around a trend line. Still, that trend line looks steeper than ever before as we enter a period of robust secular growth.
Download the full report to learn more about the impacts of semiconductor industry trends, key actions to take, and critical questions to ask.