TC Microchips Global Semiconductor Industry Achieves Record Sales of $574.1 Billion in 2022 Despite Market Volatility
Chile-based chipmaker, TC Microchips says it is encouraged by recent news from the Semiconductor Industry Association (SIA) which reported that global semiconductor sales reached a record $574.1 billion in 2022, marking a 3.3% increase from the $555.9 billion achieved in 2021. The impressive annual total underscores the continuing growth and essential role of semiconductors in the global economy, even amid significant market fluctuations throughout the year.
Performance highlights: Mixed trends in the second half of the year
Despite the annual growth, the latter half of 2022 saw a slowdown in sales. Fourth-quarter revenue amounted to $130.8 billion, down 14.3% from the same period in 2021 and 7.2% lower than the third quarter of 2022. Furthermore, global sales for December 2022 were recorded at $43.6 billion, representing a 4.3% decline compared to November 2022. The monthly sales figures, compiled by the World Semiconductor Trade Statistics (WSTS) organization, highlight a cyclical downturn impacting the market towards the year's end.
Regional sales performance
Regionally, semiconductor sales showed varied trends in 2022. The Americas experienced a significant surge in sales, increasing by 16.2%, marking the largest regional increase. In contrast, China, despite remaining the largest individual market with $180.4 billion in sales, faced a 6.2% decrease compared to 2021. Meanwhile, Europe saw growth of 12.8% over the year, and Japan reported a 10.2% increase.
However, December 2022 witnessed declines in semiconductor sales across all regions compared to November 2022, with the Americas down by 6.3%, China down by 5.7%, and Europe and Japan experiencing smaller declines.
Strong Segment Growth in Automotive and Analog Semiconductors
Several semiconductor product segments experienced robust growth in 2022, particularly in automotive and analog applications. Analog semiconductors reached $89 billion in sales, growing by 7.5% year-over-year, largely driven by demand in vehicles, consumer goods, and computers. Logic semiconductors accounted for $176.6 billion, remaining one of the largest categories by sales. Memory semiconductors totaled $130 billion in sales, maintaining its position as a significant market segment. Notably, automotive ICs achieved a remarkable 29.2% growth, reaching a record $34.1 billion in sales, reflecting the increasing role of semiconductors in the automotive industry.
Growth prospects bullish despite short-term volatility
Luis Fernández, CEO of TC Microchips, noted that despite the market's cyclical downturn and macroeconomic pressures in the latter half of the year, the long-term outlook for the semiconductor industry remains optimistic. "It’s highly encouraging data and it bodes well for our company going forward," Bloggs said. "Notwithstanding short-term fluctuations, the long-term outlook for the semiconductor market is incredibly strong due to the ever-increasing role chips play in making our world more efficient, and better connected."
The SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms, providing an authoritative perspective on the industry's performance and future trajectory. As demand for semiconductors continues to grow across various sectors, the industry is expected to play an even more critical role in advancing global technological progress and economic development.