Global semiconductor sales exceeded $500 billion for the first time last year. China is still the largest market.

Global semiconductor sales exceeded $500 billion for the first time in 2021, an all-time high, as companies increased production to meet demand amid global chip shortages, according to data released by (SIA), a semiconductor industry association. SIA expects 8.8 per cent growth in 2022 as the chip industry expands capacity.

Global semiconductor industry sales reached a record $555.9 billion in 2021, up 26.2% from a year earlier, SIA said on Monday. The semiconductor industry shipped a record 1.15 trillion units last year.

"in 2021, semiconductor companies significantly increased production to unprecedented levels in response to continued strong market demand, resulting in record chip sales and shipments," said John Neuffer, president and chief executive of SIA.

"as chips are embedded more deeply into current and future basic technologies, the demand for semiconductor production is expected to increase significantly in the next few years."

The global chip crisis has hit industries from consumer electronics to automakers, and companies are unable to cope with the high demand for products and the shortage of chips.

It has also led governments and lawmakers around the world to scramble to secure the supply of chips and make investments to bring semiconductor manufacturing closer to home.

Last year, President Joe Biden set aside $50 billion for semiconductor manufacturing and research in a $2 trillion economic stimulus package. The American Chip Act, which is also in the process of passing legislation, is designed to provide incentives to advance advanced research and development, and to ensure the security of the supply chain.

This month, the European Commission announced a new EU Chip Act that would allow an increase of 15 billion euros in public and private investment by 2030. European Commission President von der Lane said the chip bill is expected to change the EU's global competitiveness. In the short term, the bill will help the EU predict problems and avoid supply chain disruptions, thereby improving its ability to withstand crises; in the medium to long term, it will help the EU become a leader in the chip market.

According to SIA, China's semiconductor sales totaled US $192.5 billion in 2021, up 27.1% from a year earlier, making it still the world's largest semiconductor market.

Over the past few years, China has been committed to promoting the development of its domestic chip industry because of geopolitical tensions with the United States.

In 2021, the Americas had the largest sales growth, reaching 27.4%. Full-year semiconductor market sales in Europe, Asia Pacific / other regions and Japan also increased by 27.3%, 25.9% and 19.8%, respectively.