” ANTIQ” refers to a collection of top semiconductor stocks. Advanced Micro Devices (AMD), Analog Devices (ADI), Broadcom (AVGO), Nvidia (NVDA), Texas Instruments (TXN), Taiwan Semiconductors (TSM), Intel Corp. (INTC), and Qualcomm (QCOM) are among the companies represented in the ANTIQ portfolio. As the name implies, these are some of the most powerful and long-standing corporations.
Most industries have been affected by the global shortage of semiconductor chips, which has also hampered supply chains. The biggest impact of decreased chip supply has been seen by the automotive and consumer tech industries, where several companies have been forced to delay product introductions, which will likely result in revenue loss.
In 2021, the global semiconductor revenue increased by 26.3%; in 2022, it is expected to fall to just 7.4%. Additionally, it is less than the 13.6% growth forecast for 2022 from the previous quarter. The semiconductor market is also expected to decline by 2.5% through 2023 as it enters a period of weakness.
The automotive, computation and data storage, and wireless industries are expected to account for almost 70% of growth.
More than 169 sectors have been impacted by the global chip supply deficit that has existed since 2020. This shortage is the result of a number of causes, including a growth in the demand for electronics, an unstable global economy, and the COVID-19 pandemic.
ASIC chips made in-house by many digital behemoths, like Apple, Tesla, Google, and Amazon, are now produced particularly for their own devices. They are able to stand out from the competition while gaining more control over the software and hardware integration.
The shortfall is anticipated to last until 2023, despite the fact that the world economy is finally beginning to recover from the pandemics. It is possible that the market will require a few more years to address the supply deficit.
Chip manufacturers are rushing toward more aggressive sustainability plans to lessen the environmental impact of chip production after the Taiwan drought dramatically delayed the production of TSMC.
Smartphones may be responsible for the majority of wireless sector growth as emerging markets transition from lower to mid-tier segments, supported by the rollout of 5G.
The semiconductor indices have declined considerably, so far this year. The MSCI semiconductor index and S&P semiconductor index both fell 44.68% and 43.37%, respectively, while the PHLX semiconductor index dropped 41.71%, during the period.
Just five years ago, China’s semiconductor device sales were $13 billion, accounting for only 3.8% of global chip sales. In 2020, however, the Chinese semiconductor industry registered an unprecedented annual growth rate of 30.6% to reach $39.8 billion in total annual sales, according to an SIA analysis.
If China’s semiconductor development continues its strong momentum – maintaining 30% CAGR over the next three years – and assuming growth rates of industries in other countries stay the same, the Chinese semiconductor industry could generate $116 billion in annual revenue by 2024, capturing upwards of 17.4% of global market share.
A record $556bn in revenue was generated by the sector in 2021, and it is expected to reach $640bn in 2022. Many industry insiders think the chip shortage will continue into 2023 and would continue to have an impact on end markets globally as supply chains struggle to meet that demand.
Up to 2030, McKinsey predicts that the industry’s total annual growth would likely range between 6 and 8%, which essentially means that the industry will be worth $1tn by the end of the decade, assuming a 2% annual price increase on average and a restoration to supply-demand equilibrium following the current instability.
For details on Overview of the Industry and YTD performance feel free to refer to the following ANTIQ – Semiconductor YTD Industry report from CrispIdea.
–By Shreya Shetty and Rashmitha Selvaraj
Shreya Shetty is an Industry Research Analyst at CrispIdea. She covers industry such as Cyber-security, Ad-Healthcare IT, Cloud, Semiconductor, etc.
Rashmitha Selvaraj is relationship manager who looks into Investor Relations and Corporate Affairs at CrispIdea and she also looks after the digital communication of the company.