Global Chip Sales Rose 6.5 Percent in 2020 After Year-End Rush: Report

World semiconductor gross sales rose 6.5 p.c general in 2020, as a restoration over the past three months of the 12 months helped offset a pointy dropoff in March and April, when pandemic stay-home orders rolled out around the globe.

World gross sales had been $439 billion (roughly Rs. 32,08 lakh crores) in 2020, in accordance with knowledge from the Semiconductor Business Affiliation (SIA), a commerce group that represents most US chipmakers together with many worldwide corporations. The group mentioned gross sales from US chipmakers had been about $208 billion (roughly Rs. 15,20 lakh crores), or about 47 p.c of the whole.

Chip gross sales into the US had been $94.15 billion (roughly Rs. 6,87 thousand crores), up 19.8 p.c from the earlier 12 months.

Falan Yinug, SIA’s director of business statistics and financial coverage, mentioned a lot of the rise in US buying was pushed by high-end reminiscence chips utilized in purposes akin to knowledge facilities.

American tech corporations akin to Amazon.com, Microsoft and Alphabet’s Google all noticed dramatic rises in using cloud computing over the course of 2020 as companies tailored to working from house.

Whereas US-based corporations represented almost half of semiconductor gross sales, they represented solely about 12 p.c of chip manufacturing capability in 2020. That’s down from 37 p.c in 1990, as most US corporations now supply their chips from factories in Asia.

John Neuffer, president and chief govt of the business group, mentioned laws handed final 12 months to offer incentives to chip factories in the US might assist change that determine this 12 months. The regulation might present funding to US corporations akin to Intel or GlobalFoundries, in addition to international corporations akin to Samsung Electronics or Taiwan Semiconductor Manufacturing Firm.

“Over the following 10 years, semiconductor manufacturing goes to develop 56 p.c,” Neuffer mentioned. “We need to make certain we’re getting a much bigger piece of the manufacturing pie.”

© Thomson Reuters 2021

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