According to the latest data published by the Semiconductor Industry Association (SIA), the technology embargo imposed by the USA on China does not seem to have worked very well. China currently remains the single largest semiconductor market.According to the SIA report, semiconductor sales worth $573.5 billion were realized in 2022, an increase of 3.2 percent. This is also the highest amount of global sales ever reported by the industry despite the ongoing US-China tech war and economic downturn.
China is the leader of the semiconductor market
China, on the other hand, continues to hold the number one position in the semiconductor market, while generating a third of global revenue alone. The Chinese semiconductor industry plays an important role in the technology sector, which accounts for about 30 percent of the country’s GDP. However, it would be completely wrong to say that the US sanctions did not work. Yes, China is still the leader, but revenues have fallen, especially in the second half of 2022. Fourth-quarter sales of $130.2 billion were down 14.7 percent from the same period in 2021 and 7.7 percent from the third quarter of 2022.
SIA President and CEO John Neuffer said the global semiconductor market experienced significant ups and downs in 2022, with record high sales at the beginning of the year followed by a cyclical decline later in the year.Moreover, despite the short-term fluctuations in sales due to market volatility and macroeconomic conditions, the growing role of chips in making the world smarter and more efficient is undeniable. Neuffer also notes that the long-term outlook for the semiconductor market is incredibly strong.
Why are semiconductors so important?
Today, more precisely, before the last ten years, the most important thing for independence was energy. But whatever the type, the value of energy is declining, as semiconductor technologies and semiconductor product manufacturing are becoming a much larger market and more strict dependency.Semiconductors are one of the most important technology items of the age. All major technology sectors such as wired communications, consumer electronics, industrial electronics, automotive electronics, wireless communications, computing and data storage need semiconductors more than ever before. If progress is to be made in artificial intelligence, military and weapon systems, space technology, and more, it is not possible without having the latest and most advanced semiconductor technology.
Microprocessors generated the highest revenue at $176 billion in 2022, followed by memory chips, which reported sales of $130 billion. The biggest revenue growth was seen in analog chips used in cars, computers and other consumer goods. Analog chips generated $89 billion in revenue in 2022, up 7.5 percent.
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