Data recently released by the Chip Industry Association of America (SIA) on semiconductor sales in 2022 by broad product category, known as “end-use,” reveals which product types will see the largest increase in sales in 2022.
Despite a cyclical slowdown in the market that took over in the second half of 2022, global semiconductor sales reached an all-time high of $574 billion for the year, a 3.3% increase over 2021 sales. Data recently released by the Chip Industry Association of America (SIA) on semiconductor sales in 2022 by broad product category, known as “end use,” reveals which product types saw the largest increase in sales in 2022.
Historically, the computer and computer and communications end markets accounted for about two-thirds of total sales, with sectors such as automotive, industrial and consumer electronics accounting for the remainder. But sales by end market in 2022 showed a marked change, according to the 2022 Semiconductor End-Use Survey by the World Organization for Semiconductor Trade Statistics (WSTS). While the PC and communications end markets still accounted for the largest share of semiconductor sales in 2022, their lead has shrunk. Meanwhile, automotive and industrial applications experienced the greatest growth this year.
The table below shows the change in market share.
Source: WSTS and SIA analysis
To illustrate the growing demand for chips in these industries, the automotive and industrial sectors will represent 14% and 12% of average chip sales growth through 2030, respectively, and will drive demand growth throughout the decade, according to McKinsey analysis (see table below). Despite the current short-term slowdown in the global semiconductor market, demand for chips in the long term is expected to show vibrant growth. And to meet this growing demand, our industry has recently committed to expanding US manufacturing capacity through private investment of more than $200 billion to date.