, Vice President Analyst at Gartner, to learn what’s happening in the semiconductor market, including why the U.S. is a hotbed for chip manufacturers and the cause and effects of ongoing semiconductor shortages.
For example, the CHIPS for America Act, part of the National Defense Authorization Act for fiscal year 2021, authorizes $52 billion in funding to support the expansion of the U.S. semiconductor market. Irrespective of the shortages, Intel and other vendors need new fabrication plants to support the next generation of process nodes. As the U.S. continues to demonstrate its willingness to invest in semiconductor manufacturing, it is becoming an appealing market for such expansion.
It’s important to note that the growth in the market is not due to high demand alone. The chip shortage led to logistics and raw material price increases, which in turn drove semiconductors’ average selling price higher. Coupled with high demand, ASP increases contributed to the overall growth of the market in 2021. All 10 of the top semiconductor vendors experienced revenue growth from 2020-2021, with some reaching growth rates upward of 50% for the year.
Gartner_IT viaPhoton
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