Semiconductor Sales To Rise at 7.1% CAGR Through 2026 - IC Insights

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FEBRUARY 10, 2022

Semiconductor Sales To Rise at 7.1% CAGR Through 2026

Moderating growth rate from 2021-2026 follows strong 2016-2021 CAGR of 11.0%.

IC Insights has released its comprehensive forecast and analysis of the worldwide semiconductor industry

in its January Semiconductor Industry Flash Report--part of the

2022 McClean Report service.

The report forecasts total semiconductor sales will rise 11% this year following a very strong 25% increase in 2021 and an 11% increase in 2020. If achieved, it would mark the first time since 1993-1995 that the semiconductor market has enjoyed three

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Bill McClean President Phone: +1-480-348-1133 Email: bill@

consecutive years of double-digit growth. From 2016-2021, the

compound annual growth rate (CAGR) for the total

semiconductor market was 11.0%--a very strong period that included a big surge in DRAM and flash

memory markets in 2017 and 2018 and strong post-Covid recovery in 2020 and 2021. However, most

industry observers--including IC Insights--realize that the semiconductor industry is very cyclical and

ongoing annual double-digit gains are unsustainable. As a result, IC Insights now forecasts total

semiconductor sales will rise over the next five years at a more moderate compound annual growth rate

of 7.1% (Figure 1).

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