Chipmakers are the clear winners in the new pandemic, and the strong momentum in the semiconductor sector will continue in 2022, according to a report released on Monday by trade credit insurer Yue an an (Euler Hermes).
"the current semiconductor cycle has been running at full speed since 2019, when the semiconductor industry emerged from its worst recession," said an analyst.
Analysts predict that global semiconductor sales are expected to grow by another 9% in 2022, breaking the $600 billion mark for the first time. In 2021, semiconductor sales rose 26% to $553 billion.
Novel coronavirus's months-long shortage of semiconductors during the epidemic has affected industries ranging from cars to game consoles. This is because chipmakers are struggling to meet unprecedented demand as global economic activity recovers from the novel coronavirus crisis.
Although major chipmakers such as TSMC have announced plans to increase capacity, it usually takes years for these plants to start production.
Analysts at Yuli Anyi said that so far, there are three factors that have pushed up sales of chips: 1, demand: strong demand for consumer electronic products such as personal computers and smartphones; 2, prices: price increases caused by tight supply and demand; 3. Improvement in product structure: the increase in the price of semiconductor products and the launch of a new generation of chips further improve the structure of semiconductor products.
Risks in the chip industry
Looking ahead to the new year, analysts believe that the three major market drivers are expected to weaken as demand growth normalizes and new capacity accelerates production. In addition, analysts point to some of the risks facing the semiconductor industry.
1. After strong growth in 2020 and 2021, demand in the semiconductor industry returned to normal and hardware sales (products such as computers and televisions) were hit more than expected.
2. The novel coronavirus epidemic may cause continuous damage to the supply chain, and the long-term stagnation of manufacturing activity will hit the demand for semiconductors.
3. "extremely adverse climate events are becoming more and more frequent" has proved to be a major challenge for the semiconductor industry, which relies on optimal capacity utilization to make a profit.
Aurelien Duthoit, a technology and retail consultant at Yuli Anyi, said several other factors were expected to "set the tone for the chip industry in 2022".
He pointed out that in addition to the normalization of demand in areas such as computers and servers, factors such as "unpredictable contingencies" will affect major semiconductor manufacturing bases such as Taiwan and South Korea.
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