The semiconductor industry witnessed an unanticipated rise in demand during the COVID-19 pandemic due to the varied use of semiconductors in electronic devices, wireless connectivity, life-saving equipment, and critical infrastructure. The heightened demand led to a supply-demand imbalance globally, which still exists. The importance of semiconductors across industries has compelled the government to move to fortify America’s semiconductor supply chains through robust investments in U.S. chip production and innovation.
The market is slowly stabilizing with the semiconductor component supply constraints “expected to gradually ease through 2022, and prices will stabilize with the improving inventory situation,” according to Alan Priestley, research vice president at Gartner. According to the organization, global semiconductor revenue is projected to reach $676 billion in 2022, representing an increase of 13.6% from 2021. The industry is expected to hit $700.60 billion in 2023.
