While the trend of increasing semiconductor content has been evident for the past 30 years, the big jump in the average semiconductor content in electronic systems in 2018 is expected to be primarily due to the huge surge in DRAM and NAND flash ASPs and average electronic system sales growth this year. After slipping to 30.2% in 2020, the semiconductor content percentage is expected to climb to a new high of 31.5% in 2022. IC Insights does not anticipate the percentage will fall below 30% any year through the forecast period.
The trend of increasingly higher semiconductor value in electronic systems has a limit. Extrapolating an annual increase in the percent semiconductor figure indefinitely would, at some point in the future, result in the semiconductor content of an electronic system reaching 100%. Whatever the ultimate ceiling is, once it is reached, the average annual growth for the semiconductor industry will closely track that of the electronic systems market (i.e., about 4%-5% per year).
The 250+ page Mid-Year Update to the 2018 edition of The McClean Report further describes IC Insights’ IC market forecast data for 2017-2022.
Report Details: The 2018 McClean Report
Additional details on the IC market forecast and other trends within the IC industry will be provided in the Mid-Year Update to The McClean Report—A Complete Analysis and Forecast of the Integrated Circuit Industry . A subscription to The McClean Report includes free monthly updates from March through November (including a 200+ page Mid-Year Update , and free access to subscriber-only webinars throughout the year. An individual-user license to the 2018 edition of The McClean Report is priced at $4,290 and includes an Internet access password. A multi-user worldwide corporate license is available for $7,290.