Global Semiconductor Sales Expected to Surpass $600 Billion

(Photo by Bloomberg News)

[Asia Economy Reporter Yujin Cho] This year, global semiconductor sales are expected to surpass $600 billion (approximately 716 trillion KRW) for the first time ever.

On the 2nd (local time), U.S. economic media CNBC cited the forecast from the German credit insurer Euler Hermes to report this.

Global semiconductor sales this year are projected to increase by about 9% compared to the previous year. Last year, sales reached $553 billion, a 26% growth compared to 2019, which recorded the worst market conditions in history.

The increase in semiconductor sales was driven by the surge in demand for IT-related products benefiting from the expansion of remote work and contactless culture due to COVID-19, combined with the rising demand for automotive semiconductors following economic recovery.

Euler Hermes stated that the semiconductor industry, having emerged from the worst slump in 2019, became the biggest winner during the COVID-19 era and expects strong momentum to continue this year as well.

Euler Hermes said, "As semiconductor companies struggled to keep up with unprecedented demand during the COVID-19 economic recovery, the semiconductor supply shortage that persisted throughout the pandemic affected a wide range of industries, from automobiles to electronics such as gaming."

Due to favorable market conditions, major semiconductor chip manufacturers have posted record earnings and are expanding their businesses through factory expansions. The stock price of TSMC, the world's largest semiconductor chip manufacturer, has surged more than 80% over the past two years.

However, as we enter the third year of COVID-19, the extraordinary sales boom is expected to return to normal levels, and the gradual increase in supply due to large-scale facility investments by the industry could pose risks to the semiconductor sector.

Additionally, Euler Hermes added that increasing external uncontrollable factors such as abnormal weather and the so-called new Cold War between the U.S. and China could also become risk factors burdening the semiconductor industry.

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