Chip Sales Will Grow 10% in 2023

Chip sales are expected to grow by 10% this year, a new report states. Trade credit insurer Euler Hermes, the report’s author, predicts that the race for the semiconductor chips will continue strong in the new year. 

With at least 9% growth in 2022, semiconductor sales are expected to surpass $600 billion for the first time. This is no surprise since 2021 was an incredible year for chipmakers, having brought a 26% sales growth and $553 billion. 

TSMC and other leading semiconductor chip producers have already announced their plans to increase productivity. 

During the pandemic, there were months when the chip shortage was so devastating that it impacted whole industries and lasted until late last year, leaving chipmakers scrambling to satisfy the growing demand.

According to the new analysis, the demand, the prices, and the improved product mix were the factors that drove the increase in sales. 

However, it won’t be all sunshine and rainbows! The analysis also shows that chipmakers will face some significant risks in 2022. 

For example, the demand for semiconductors may take a hit if there are any extended pauses in the manufacturing process, and hardware sales may suffer even more after the demand normalizes.

On top of this, the fight between China and the US over who’ll be the world’s tech champion may hinder different companies’ efforts and affect manufacturing. Therefore, the unexpected events in the tech war between China and the US could set the tone for the changes in the new year.