Global semiconductor gross sales rose 6.5 % general in 2020, as a restoration over the past three months of the yr helped offset a pointy dropoff in March and April, when pandemic stay-home orders rolled out world wide.

Global gross sales had been $439 billion (roughly Rs. 32,08 lakh crores) in 2020, in response to knowledge from the Semiconductor Business Affiliation (SIA), a commerce group that represents most US chipmakers together with many worldwide corporations. The group mentioned gross sales from US chipmakers had been about $208 billion (roughly Rs. 15,20 lakh crores), or about 47 % of the overall.

Chip gross sales into the USA had been $94.15 billion (roughly Rs. 6,87 thousand crores), up 19.eight % from the earlier yr.

Falan Yinug, SIA’s director of trade statistics and financial coverage, mentioned a lot of the rise in US buying was pushed by high-end reminiscence chips used in purposes equivalent to knowledge facilities.

American tech firms equivalent to, Microsoft and Alphabet’s Google all noticed dramatic rises in using cloud computing over the course of 2020 as companies tailored to working from dwelling.

Whereas US-based firms represented practically half of semiconductor gross sales, they represented solely about 12 % of chip manufacturing capability in 2020. That’s down from 37 % in 1990, as most US firms now supply their chips from factories in Asia.

John Neuffer, president and chief government of the trade group, mentioned laws handed final yr to supply incentives to chip factories in the USA might assist change that determine this yr. The legislation might present funding to US firms equivalent to Intel or GlobalFoundries, in addition to international corporations equivalent to Samsung Electronics or Taiwan Semiconductor Manufacturing Firm.

“Over the following 10 years, semiconductor manufacturing goes to develop 56 %,” Neuffer mentioned. “We wish to be sure that we’re getting an even bigger piece of the manufacturing pie.”

© Thomson Reuters 2021

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