As the global semiconductor market expands, it is expected to exceed $1 trillion within 10 years, doubling from the current value.
The Wall Street Journal (WSJ) reported on the 30th (local time) that worldwide semiconductor sales surged 25% last year to $583.5 billion, citing research and consulting firm Gartner. This is the first time that semiconductor sales exceed $500 billion.
The semiconductor industry's net profit is also increasing significantly. According to Gartner, semiconductor makers' net profit grew 9% last year, outpacing the previous growth trend.
Peter Hanbury, the head of semiconductors at consulting firm Bain & Co, predicted that “Semiconductor sales growth will be driven by high-priced, high-performance semiconductors.” These semiconductors are used in machine learning and high-performance computers.
Although semiconductor makers are expanding production facilities, the trend of excess semiconductor demand is expected to continue for some time as it takes time to expand facilities. Once the expansion of production facilities complete, the excess supply will be expected again.
Accordingly, the industry is concerned that there is a risk of semiconductor oversupply in 2025. Andrew Norwood, vice president of research at Gartner, predicted that "If the best-case scenario is followed, the global semiconductor industry's revenue will reach $692.5 billion by 2025."
The market is also projected to reach $1 trillion in sales by 2030. If it achieves $1 trillion in sales, the size of the semiconductor industry will overwhelm the size of the global fast food industry.
By Staff Reporter Dong-jun Kwon (djkwon@etnews.com)