Specialists of the analytical company IC Insights claim that in 2021, the share of semiconductor products in the cost of electronic systems last year reached 33.2%. This is a record value. The previous record was set in 2018.
Historically, the driving force behind the higher average annual growth rates of the semiconductor industry compared to the electronic systems market is an increase in the cost or content of semiconductors used in electronic systems. Given that the global growth rates of smartphone, car and PC shipments have been showing maturity and slowing down over the past 10 years, analysts attribute the difference between the average annual growth rate of 3.5% in the period from 2011 to 2021 recorded in the electronic systems market and the average annual growth rate of 6.5% recorded in the same period in the semiconductor market to an increase in the share of semiconductor products and their cost.
The first year in the entire history of observations when the content of semiconductor products in electronic systems increased while simultaneously reducing the market for semiconductor products was 2009. This situation was repeated again in 2015. The total volume of the semiconductor market decreased by 1%, but the share of semiconductor products increased from 24.5% in 2014 to 24.8% in 2015. Until 2017, 2010 with 25.9% was a record for the content of semiconductor products in electronic systems. This mark was easily surpassed in 2017 by 28.9%. A new maximum was reached in 2018. The dynamics is clearly shown on the graph.
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| The share of semiconductor products in the cost of electronic systems. |
| Source: IC Insights |
Of course, the trend of increasing the cost of semiconductor products in electronic systems has a limit. Whatever it may be, after its achievement, the average annual growth of the semiconductor industry will exactly match the growth of the electronic systems market, i.e. it will be about 4%. According to IC Insights, the "ceiling" is at least 40%, and it will not be reached in the next five years.
