IC Insights has published a forecast for the development of the microcircuit market for 2021. It is based on the analysis of data on all leading suppliers – both with their own facilities and ordering production from contract manufacturers. These data served as the basis for determining the final revised growth rate in 2020. According to IC Insights, compared to 2019, the growth was 13%, and not 10%, as previously thought.
Analysts are confident that in 2020 the global pandemic has accelerated the digital transformation of the global economy, leading to an increase in sales of new electronic systems and a noticeable growth in the chip market in the second half of the year. Moreover, this demand was fully preserved in the current quarter.
IC Insights expects the market to grow by 2% in the current quarter compared to the fourth quarter. If this forecast comes true, it will be the first quarter-on-quarter growth since the first quarter of 2011, when 1% growth was recorded.
In general, the market will grow by 19% in 2021. IC Insights analysts clarify that this is a rather conservative forecast. It is made on the assumption that the bulk of the growth will come from a 17% increase in supply in quantitative terms. The average price for the year will increase by 1%.
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