Photo: GM
While the lack of semiconductors has caused massive disruptions in almost every single industry sector out there, the big winners of this once-in-a-lifetime struggle are none others than the chipmakers themselves.
Working around the clock on producing the chips their clients need, these companies have already recorded impressive growth in the last couple of years.
An analysis recently released by trade credit insurer Euler Hermes estimates the semiconductor market recorded a 26 percent growth last year to reach a record $553 billion. And given the production still hasn’t been aligned with the demand, the growth is likely to continue this year.
In other words, chip sales are likely to go up another 9 percent, this time exceeding $600 billion, despite the chip shortage.
But while chipmakers are clearly having the time of their lives, the analysis warns that this whole frenzy could come to an end abruptly this year. And it’s all because of four different factors.
First and foremost, there’s a chance the hardware sales will slow down, pretty much because the demand may no longer be as high as in the last couple of years. Most people have already purchased the devices they need to work remotely, and the rate of upgrades is likely to decrease.
Then, the demand for chips could be impacted by customers forced to temporarily stop their production due to government restrictions and lockdowns. The tensions between the United States and China could contribute to this sudden change as well, the analysis notes, and so could the advertise climatic events affecting the manufacturing of chips.
At the end of the day, it just looks like 2022 may not be a lot different from 2021, at least if nothing unexpected happens overnight. The demand for chips will probably remain strong throughout the year, especially as the world is gearing up for another health crisis wave impacting the production of certain goods.
An analysis recently released by trade credit insurer Euler Hermes estimates the semiconductor market recorded a 26 percent growth last year to reach a record $553 billion. And given the production still hasn’t been aligned with the demand, the growth is likely to continue this year.
In other words, chip sales are likely to go up another 9 percent, this time exceeding $600 billion, despite the chip shortage.
But while chipmakers are clearly having the time of their lives, the analysis warns that this whole frenzy could come to an end abruptly this year. And it’s all because of four different factors.
First and foremost, there’s a chance the hardware sales will slow down, pretty much because the demand may no longer be as high as in the last couple of years. Most people have already purchased the devices they need to work remotely, and the rate of upgrades is likely to decrease.
Then, the demand for chips could be impacted by customers forced to temporarily stop their production due to government restrictions and lockdowns. The tensions between the United States and China could contribute to this sudden change as well, the analysis notes, and so could the advertise climatic events affecting the manufacturing of chips.
At the end of the day, it just looks like 2022 may not be a lot different from 2021, at least if nothing unexpected happens overnight. The demand for chips will probably remain strong throughout the year, especially as the world is gearing up for another health crisis wave impacting the production of certain goods.
Google News