Global semiconductor revenue totaled $595 billion in 2021, a 26.3% increase from 2020, according to Gartner, Inc.
“The events driving the current chip shortage continue to impact original equipment manufacturers (OEMs) around the world, but the rise of 5G smartphones and the combination of strong demand and higher logistics/commodity prices have driven up average selling prices (ASP) for semiconductors, contributing to significant revenue growth in 2021,” said Andrew Norwood, vice president of research at Gartner.
Samsung Electronics regained the top spot from Intel for the first time since 2018, but by less than a percentage point, with revenue growing 28% in 2021.
Intel’s revenue fell 0.3%, gaining 12.2% market share compared to Samsung’s 12.3% market share.
Intel was followed by SK Hynix, Micron Technology and Qualcomm with 6.1%, 4.8% and 4.6% market share respectively in 2021. Broadcom held a 3.2% share.
In the top 10, AMD and Mediatek saw the strongest growth in 2021 with 68.6% and 60.2% growth respectively, with a market share of 2.7% and 3%, respectively. Texas Instruments took seventh place in the top 10 with a 2.9% share while NVIDIA took ninth place with a 2.8% market share.
The biggest change in the semiconductor vendor rankings in 2021 was HiSilicon’s removal from the top 25.
HiSilicon’s revenue decreased 81% from $8.2 billion in 2020 to $1.5 billion in 2021,” Norwood said.
“It was a direct result of US sanctions against the company and its parent company Huawei,” Norwood said.
According to Norwood, this has also impacted China’s share of the semiconductor market, which fell from 6.7% market share in 2020 to 6.5% in 2021.
South Korea saw the largest increase in market share in 2021, as strong growth in the memory market propelled South Korea to grab 19.3% of the global semiconductor market.
“2021 saw stronger demand returning to the automotive and industrial markets compared to the weak and Covid-disrupted market in 2020,” according to the report.
The automotive semiconductor market grew by 34.9% in 2021, outpacing all other end markets.
Wireless communications, which is dominated by smartphones, grew by 24.6%.
The number of 5G handsets produced reached 556 million in 2021, up from 251 million units in 2020, and companies have upgraded their Wi-Fi infrastructure for employees returning to the office.
Driven by DRAM, memory accounted for 27.9% of semiconductor sales in 2021 and saw revenue growth of 33.2%, up $41.3 billion from the prior year .
“Memory continued to benefit from the key demand trend over the past two years – the shift to work and home learning/hybrids. This trend has fueled increased server deployments by large-scale cloud service providers to satisfy online work and entertainment, as well as an increase in end-market demand for PCs and ultramobiles,” according to The report.
April 16, 2022