IC Insights has announced the release of its 2021 edition of The McClean Report. The McClean Report has delivered timely, sound, and resourceful semiconductor market data and analysis since it was first published in 1997. This 24th edition of The McClean Report features more than 400 pages and over 375 charts and figures. A one-hour webcast covering some of the highlights of the new report is also now accessible for subscribers.
Throughout its history, the IC industry has experienced amazing highs and endured gut-wrenching lows. Nothing, however, has quite matched the challenge presented in 2020 when the Covid-19 coronavirus pandemic swept around the world. The damaging impact on individuals as well as regional/global economies was evident early on. Yet, through it all, the total IC industry largely avoided the catastrophic sales decline seen in many other industries.
Global IC sales increased 10% in 2020 fueled by demand for portable computers and powerful large-screen smartphones, which were used to access the Internet and cloud computing when the Covid-19 crisis was rapidly spreading. Investment in expansion of data-center computers also gave IC sales a boost.
Computing has long been the growth engine for the IC industry, but remarkable emerging applications in communication, consumer, automotive, and industrial/medical systems are fueling development of new complex, high-speed, and/or low-power ICs. Cloud computing, 5G technology, artificial intelligence, virtual reality, the Internet of Things, autonomous vehicles, robotics, and many other technologies are rapidly advancing and will change the way consumers live and businesses operate. IC Insights expects a strong, three-year wave of double-digit growth for the IC industry based on these emerging technologies.
After a decline of 4.4% in 2020, IC Insights expects 4.8% global GDP growth in 2021, its highest increase since 1976. Moreover, throughout the forecast period, IC Insights believes that annual worldwide IC market growth will continue to track closely with the performance of worldwide GDP.
Electronic system sales are forecast to rise eight percent while the 2021 IC market is forecast to rise 12% and set a new all-time high sales level of $441.5bn, which would surpass the previous high mark of $421.7bn set in 2018.
A big 15% surge in semiconductor industry capital spending is forecast for this year as TSMC and Samsung are moving to expand their respective 7nm and 5nm manufacturing capacity. TSMC also expects to ramp production of 3nm devices by the end of the year.