The IC market will grow 11% this year, following strong growth of 26% in 2021 and 13% in 2020, according to the latest forecast published by IC Insights.
If realized, it would mark the first three consecutive years of double-digit growth in the IC market in 25 years. The last time there was such an increase was in the four-year period from 1992 to 1995. Between 1978 and 2021, years with an increase of more than 25% occurred a total of 11 times.
IC Insights noted that global IC sales are expected to grow by 11% this year to a new high of $565.1 billion, after breaking the $5 trillion plateau for the first time to $509.8 billion in 2021.
There was also exciting news from the Electronic Systems Design (ESD) industry, another industry that will post double-digit quarterly growth in 2021 and set a new high for the fourth-quarter moving average.
In its latest Electronic Design Market Data (EDMD) report, the ESD Alliance, a SEMI technology community, announced that the Electronic System Design (ESD) industry revenue increased 17.1% year over year to $3,458.1 million in the third quarter of 2021 from $2,953.9 million. The fourth-quarter moving average, which compares the most recent four quarters to the previous four, rose 16.1%.
The quality of the double-digit growth achieved by the ESD market in Q3 2021 is quite high, firstly, with double-digit growth levels in all regions of the world; secondly, by product category, CAE, printed circuit boards and multichip modules , SIP and services all showed double-digit growth.
The industry’s pace of expansion in 2021 should not be underestimated either, with companies tracked in the EDMD report employing 51,182 globally in the third quarter of 2021, an 8.7% increase from 47,087 in the third quarter of 2020, and an increase of 8.7% compared to 2021 Compared with the second quarter of this year, it increased by 2.4%, which is particularly prominent in the global epidemic environment.
In this report, the year-over-year change in revenue by product application category is:
CAE Income:
Up 13.7% to $1,054.7 million. The moving average growth of CAE in the fourth quarter was 11.8%.
IC Physical Design and Verification Revenue:
Up 0.7% to $612.6 million. The category's fourth-quarter moving average rose 16%.
Printed circuit board and multichip module (PCB and MCM) revenue:
Up 14.5% to $298.3 million. The Q4 moving averages for PCB and MCM are up 10.9%.
SIP revenue:
Up 30.6% to $1,373.3 million. The SIP moving average grew 22.1% in the fourth quarter.
Service revenue:
Up 12.5% to $119.1 million. Services moving average growth of 9.2% in the fourth quarter.
Revenue and year-over-year changes by global region are:
America:
The largest reporting region by revenue, purchased $1,494.5 million in electronic system design products and services in the third quarter of 2021, an increase of 14.3%. The Americas Q4 moving average rose 15.8%.
Europe, Middle East and Africa (EMEA):
Revenue rose 22.6% to $451.7 million. EMEA's Q4 moving average grew by 11.9%.
Japan:
Revenue rose 11.8% to $259.8 million. Japan's fourth-quarter moving average rose 3.3%.
Asia Pacific (APAC):
Revenue rose 19.7% to $1,252.1 million. The Asia-Pacific moving average grew 21.3% in the fourth quarter.
