According to a recent SIA report, despite a cyclical market downturn in the second half of 2022, global semiconductor sales hit an all-time high of $574 billion for the year, a 3.3% increase from 1921.

From the perspective of the end use of semiconductors, the PC/computer and communication end markets generally account for about two-thirds of total sales, and industries such as automotive, industrial and consumer electronics account for the rest. But in the 2022 Semiconductor End Use Survey, sales by end market in 2022 have changed significantly.

The table below presents the change in market share.

While the PC/computer and communications terminal markets still accounted for the largest share of semiconductor sales in 2022, the lead narrowed. Meanwhile, automotive and industrial applications saw the largest growth for the year.

According to a McKinsey analysis, the automotive and industrial sectors will account for an average 14% and 12% growth in chip sales, respectively, through 2030, driving demand growth for the decade, illustrating the growing demand for chips in these industries .

Despite the current short-term downturn in the global semiconductor market, demand for chips is expected to show strong growth in the long run.