"This Year’s Global Sales of Memory and Automotive Semiconductors Show Double-Digit Growth"

[Asia Economy Reporter Suyeon Woo] Amid worsening supply shortages since early this year and signs of rising semiconductor prices, global sales in the memory and automotive semiconductor markets are expected to achieve double-digit growth this year.

On the 7th, global market research firm IC Insights forecasted that among the 33 products defined by the World Semiconductor Trade Statistics (WSTS) organization, DRAM and NAND flash sales will grow by 18% and 17%, respectively, ranking first and second in semiconductor sector growth this year. These figures exceed IC Insights' projected overall global semiconductor market growth rate of 12%.

DRAM sales, which recorded a 37% decline last year due to price drops in 2019, returned to positive growth last year as untact demand surged amid COVID-19. This year, demand for server DRAM is expected to increase as inventory levels at server DRAM customers decline, making the DRAM market outlook the brightest among the 33 product groups.

The NAND flash market saw a 24% sales increase last year driven by laptops, tablets, and cloud service providers expanding their servers, and double-digit growth of 17% is expected again this year. Additionally, the accelerated transition to 5G smartphones is anticipated to further boost NAND flash market growth.

Examples of Automotive Semiconductor Applications / Source=Samsung Electronics Semiconductor Blog

Furthermore, IC Insights predicted that following DRAM and NAND flash, the automotive semiconductor market will achieve significant sales growth of 16% this year. The automotive semiconductor market experienced a downturn last year due to a global decline in vehicle production caused by COVID-19, but from the second half of last year and early this year, delayed vehicle production surged, leading to a shortage in automotive semiconductor supply.

IC Insights expects the average price of automotive semiconductors to rise above $550 this year due to the surge in vehicle production demand and advancements in connected car and autonomous driving technologies. Recently, due to the shortage of automotive semiconductors, U.S. automaker GM has begun production cuts at four plants, including its Korean factory, and major global automakers such as Volkswagen, Audi, Ford, Toyota, and Honda are reportedly reducing production volumes.

Industry insiders expect this automotive semiconductor supply shortage to continue for at least six months. Dongwon Kim, a researcher at KB Securities, stated, "Although the U.S. and Taiwan governments have held emergency meetings and are demanding foundry expansions, the supply shortage is expected to persist for six months."

This content was produced with the assistance of AI translation services.