IC Insights: Global IC market will grow by 12% in 2021

IC Insights recently released the latest report, which provides a forecast update of the global IC market data in 2021.

IC insights pointed out that In 2020, the global pandemic accelerated the digital transformation of the worldwide economy, which led to an increase in sales of new electronic systems and a marked uptick in the IC market in the second half of the year. Moreover, this demand has continued in full force in 1Q21. While the Covid-19 situation is still very fluid, many semiconductor companies have released strong 1Q21 guidance and expect healthy demand to continue throughout this year.

IC Insights believes that the 1Q21/4Q20 IC market will show a 2% increase. If this forecast comes to fruition, it would be the first 1Q/4Q sequential IC market increase since a 1% growth rate was registered 10 years ago in 1Q11.

Figure 1 provided by IC Insights shows that if total 1Q21/4Q20 IC sales increase 2% to $113.1 billion and remain flat from 2Q21 through 4Q21, the full-year 2021 worldwide IC market would register a 12% increase.

However, Figure 1 also shows that if incorporating IC Insights’ moderate quarterly expectations for 3% growth in 2Q21, an 8% increase in 3Q21, and 0% growth in 4Q21, the global IC market will display a 19% increase this year, which IC Insights believes is a rather conservative global IC market forecast for 2021. The 19% market growth is forecast to be driven by a 17% surge in IC unit volume shipments and a 1% increase in IC ASP this year.