Chip Industry’s Next Sales Target Is $1 Trillion After A Successful Year

The industry might reach $1 trillion in sales by 2030.

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semiconductor chip industry sales
Image source: TSMC.

Despite the ongoing shortages and supply chain issues, the semiconductor chip industry had a very successful sales year. In 2021, the chip industry’s annual sales went over $500 billion for the first time. To top that off, industry experts suggest that the industry’s revenue will double in less than a decade.

The pandemic led to a significant supply crunch, ultimately leading to a global semiconductor chip shortage. Even after the industry’s commendable efforts to meet the demand failed, its sales increased significantly. To clarify, the demand increased a lot, and the chip industry did its best to catch up.

Semiconductor industry thrives despite shortages

“It took 50 years to become a half-a-trillion-dollar industry. It’ll take another eight to 10 years to reach a trillion dollars,” said Tom Caufield, chief executive of GlobalFoundries, in an interview with the Wall Street Journal. GlobalFoundries Inc. is among the world’s largest contract-chip makers.

Furthermore, research firm Gartner revealed that global chip sales increased 25% year on year to a record of $583.35 billion. Manufacturers couldn’t keep up with the increased demand but anyhow topped their previous high.

According to Gartner, if the shortages last, the chip industry’s sales revenue will increase by 9%. There is clear evidence of the chip industry’s increased sales, and better performance as other dependent industries thrived too. For instance, despite the supply crunch, the PC market’s sales broke records in 2021.

The chip shortage has alerted several industries, and everyone is making sure they don’t have a significant impact. Major companies like Samsung and Deloitte predict that the ongoing chip shortage and supply crunch will last another year.

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As WSJ highlights, if all things proceed under similar circumstances, it will only take less than a decade for the chip industry to have a $1 trillion revenue in sales. Hence, we could see the semiconductor industry to have $692.5 billion in sales by 2025 and $1 trillion by 2030.

Siddharth Dudeja

Siddharth Dudeja

An engineering student with a keen interest in most aspects of technology. Likes to write about Microsoft, Apple, Laptops, Gaming, etc.

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