AMD is expected to grow by 65 percent in 2021

The shortage of circuits that began to be discerned in 2019 was significantly exacerbated by the outbreak of the corona pandemic. The contract manufacturers’ order books are filled to the brim and customers such as AMD, Mediatek, Nvidia and Qualcomm can not get enough circuits to meet demand. Consequently, sales increase at all levels, something that becomes clear in analysfirman IC Insights latest forecast.

A great majority of semiconductor companies — led by AMD, MediaTek, Nvidia, and Qualcomm — have been riding the wave of strong market growth this year. These four fabless companies are deeply entrenched in the race to provide leading edge IC solutions for artificial intelligence and machine learning applications, and 5G smartphones / infrastructure systems. – IC Insights

When the analysis company makes full-year forecasts for the 25 largest companies, there are four shining stars. The most brilliant is AMD, whose sales are forecast to grow by as much as 65 percent compared to 2020, which was already a successful year. In second place is Mediatek, which is forecast to increase by 60 percent, in third place is Nvidia with 54 percent and in fourth place is Qualcomm with 51 percent.

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It also goes well for the contract manufacturers who are responsible for the actual circuit production. China’s largest and partly state-owned Semiconductor Manufacturing International Corporation (SMIC) circuit manufacturers are expected to increase by 39 percent, US-based Globalfoundries by 34 percent, Dutch NXP Semiconductor by 28 percent and Switzerland-based STMicroelectronics by 24 percent.

In contract manufacturing, Taiwan is dominated by Semiconductor Manufacturing Corporation (TSMC), which during the second quarter of the year accounted for a market share of 52.9 percent. For TSMC, an increase of 24 percent is forecast. The other Taiwanese contract manufacturer United Microelectronics Corporation (UMC) is expected to increase its sales by 26 percent.

In the list are in place seven Samsung with a growth increase of 34 percent. While Samsung has contract manufacturing as well as sales of its own circuits, as well as memory circuits for primary memory and storage, the company also makes everything from mobile phones to white goods. It is therefore difficult to say exactly what is behind the large increase that is predicted.

Further down the list is Apple, whose growth growth relative to many others can be considered low. This is still a large forecast increase of 17 percent. The fact that Apple is not expected to increase further can probably be attributed to a lack of both circuits and components in general, something that has made it difficult to get enough products to consumers.

One problem for Intel in 2021 has been the ongoing strain on IC supplies, which has limited laptop computer sales. Intel says its partners have been unable to source enough components to build as many laptops as they’d like, which has reduced orders for Intel CPUs. Meanwhile, Intel’s newly established IFS (Intel Foundry Service) group shipped its first wafers for revenue in 3Q21. Intel is betting mightily on its foundry service group becoming a critical part of its future sales. Shipping customers’ chips for revenue is an important first step in that process.

Only two companies in the top 25 are predicted to back down. Here is AMD’s arch-rival Intel since time immemorial, which is expected to fall by 1 percent. This is due to the general lack of components, which has made it difficult for the company’s partner manufacturers to bring enough laptops to market. This in turn has damaged Intel’s order intake for processors. At the same time, it is pointed out that Intel is investing heavily in contract manufacturing and that the company delivered its first circuits to customers during the third quarter of the year.

At the bottom is Sony, whose sales are expected to decline by 3 percent. The reason here is largely due to the Playstation 5, which due to the lack of circuitry did not reach Sony’s sales target. In order to deal with similar problems in the long term, Sony recently entered into a collaboration with TSMC, which will set up a factory in Japan.

Read more about the current shortage of circuits:


Source: SweClockers by www.sweclockers.com.

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