Spending in the semiconductor sector reached a record $412.2bn last year, according to figures released by the Semiconductor Industry Association (SIA). The total number represents a rise of 21.6% when compared to 2016.
“The global market experienced across-the-board growth in 2017, with double-digit sales increases in every regional market and nearly all major product categories,” John Nueffer, SIA President, and CEO said.
Sales during December 2017 were $38bn, 0.8% more than November 2017 and a year-on-year increase of 22.5%. Last year’s fourth quarter sales were also 22.5% higher than the same period in 2016. Both Q42017 and December 2017’s sales figures were the semiconductor industry’s best ever quarterly and monthly results.
Unsurprisingly, perhaps, memory products accounted for the most sales within in the industry, accounting for $124bn of the $412.2bn total. Memory was also the fastest growing sector with sales increased by an astonishing 61.5% according to the SIA’s official figures.
This is due to supply shortages and the overall price of memory devices rising substantially during the past twelve months. Information released by market experts DRAMeXchange indicate that the average selling price from DRAM and NAND flash products both rose by 40% last year.
But even without accounting for the sales of memory products, the semiconductor market would still have increased like-for-like sales by 10%. The sales of logic and micro ICs components grew last year and rapidly-advancing categories such as rectifiers and diodes also posted strong sales figures.
“As semiconductors have become more heavily embedded in an ever-increasing number of products – from cars to coffee makers – nascent technologies like artificial intelligence, virtual reality, and the internet of things has emerged, global demand for semiconductors has increased, leading to landmark sales,” John Nueffer explained.
However, despite a remarkable upturn in 2017, Nueffer believes that growth will calm down this year and return to more ‘modest’ levels.
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- On February 21, 2018