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Semiconductor production has skyrocketed by 20% this year
26.eleven.2021 [12:57],
Alexey Razin

The DigiTimes Research agency claims that the volume of production of semiconductor components in physical terms by the end of the current year will grow by more than 20%, while next year the growth, although it will be less, will remain significant. Component demand will be fueled by proliferation of 5G networks and pandemic.

Image source: TSMC

Forced self-isolation as a result of the spread of coronavirus infection has pushed many industries to accelerate digital transformation. Business processes began to move online faster than expected. The development of digital infrastructure required more semiconductor components, some of which will remain in short supply next year.

Another phenomenon is also observed – a lack of production capacity using silicon wafers with a standard size of 200 mm. As the resource DigiTimes explains, in the fourth quarter, GlobalFoundries, UMC and VIS have already raised their prices by 10 %15%, but the number of people who want to process them by forces of 200 mm silicon wafers is not decreasing. This will allow them to raise prices by another 20-40% next year.

TSMC should end the current year with a record revenue, but the company’s management emphasizes that it is not going to cash in on customer problems, and therefore is not ready to raise prices for its services in the short term. This week, the company celebrated the completion of a new facility in southern Taiwan, where 3nm mass production will be rolled out in the second half of 2022. It is expected that it will create about 5,000 new jobs and will allow to process up to 55 thousand silicon wafers with a standard size of 300 mm per month.

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