Global semiconductor sales topped half a trillion U.S. dollars for the first time in 2021 as companies ramped up production to meet demand amid a worldwide chip shortage.
According to the U.S.-based Semiconductor Industry Association (SIA), global semiconductor industry sales reached a record $555.9 billion U.S. last year, up 26.2% from 2020. The industry shipped a record 1.15 trillion semiconductor chips in 2021.
The global chip shortage hurt industries from consumer electronics to automakers, and companies became unable to deal with the demand for and shortage of products.
The shortage also led to governments around the world scrambling to secure chip supplies and invest to bring manufacturing of semiconductors closer to home.
U.S. President Joe Biden announced $50 billion U.S. of government funds for semiconductor manufacturing and research as part of a $2-trillion U.S. economic stimulus package. A bill known as the "CHIPS for America Act" is now working its way through the legislative process and aims to provide incentives to enable advanced research and development and secure the supply chain.
The European Commission, the executive arm of the European Union, announced a new "European Chips Act" that will enable 15 billion euros ($17.11 billion U.S.) in additional public and private investments through 2030.
Semiconductor sales in China totaled $192.5 billion U.S. in 2021, up 27.1% year-over-year, eclipsing any other market, the SIA said.
China has been focusing on boosting its domestic chip industry over the last few years amid geopolitical tensions with the U.S. Beijing has made increasing self-sufficiency in semiconductors a priority, though China remains heavily reliant on foreign technology.
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