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The Chip Market Will Set a New Record This Year, Shortage Still Not Going Away

It’s becoming more and more obvious that the chip shortage wouldn’t go away in 2022, as most carmakers out there already get ready for a very difficult 2022.
The chip marker growth will continue this year 6 photos
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But while manufacturers are turning to aggressive solutions to deal with the disruptions caused by the constrained semiconductor inventory, chipmakers see their revenues skyrocketing.

And according to a recent forecast shared by IC Insights, 2022 is likely to witness a new record for the chip industry as a whole.

Last year, the total semiconductor sales climbed no more, no less than 25 percent, versus the year before. This means sales of chips reached some of the highest levels in history, especially as companies out there spent big money in an attempt to recover after the nightmare that hit the planet in 2020.

Unfortunately, we all know that building chip inventory right now is mission impossible, despite semiconductor manufacturers working around the clock not only for the current production but also for expanding their capacity.

This will all pay off in the short term, it seems, as 2022 is likely to witness another big milestone for the industry. The total semiconductor sales for the year should jump another 11 percent, meaning they should now exceed $680 billion, another major record for this side of the market.

Unfortunately, chipmakers seeing their revenues going through the roof doesn’t mean our problems are gone. Most industries, and carmakers included, will continue to struggle with the lack of semiconductors, and in the short term, they are very likely to turn to more painful decisions like shipping cars without certain systems.

For the time being, however, the majority of forecasts project a rather challenging climate in terms of chip supply in the first half of the year, with some subtle signs of recovery to be recorded towards the end of the year. If we’re lucky enough, the recovery should speed up substantially at some point in 2023.


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