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Brands Placing Orders For 2023 Products As Chip Demand Surges

Demand for processors is surging as brands launch more products than ever before that need a processor, some brands are now placing orders for 2023 products.

And while order books are bulging Countries such as Taiwan and Malaysia that produce global processors have reported new outbreaks of COVID-19 which could slow down manufacturing.

A recent surge in COVID infections in Taiwan and Malaysia is threatening to worsen the component shortfall as automotive Companies shutter production lines due to shortages.

According to a forecast released by the World Semiconductor Trade Statistics last night the worldwide semiconductor market is expected to increase by 19.7 percent to $527 billion in 2021 from a year earlier and continue to grow by 8.8 percent in 2022.

The biggest growth is set to come from the Asia Pacific region that includes Australia.

The latest forecast for 2021 has nearly doubled from the institution’s initial forecast of 10.9 percent growth made in March.

The largest growth contributor would be memory chips with a 31.7 percent growth, followed by sensors with 22.4 percent and analogue with 21.7 percent, the data showed.

The figures are based on online forecasting by WSTS member companies, as the institution was unable to have a physical forecast meeting due to the COVID-19 situation, it said.

All other major product categories are also expected to show double-digit growth rates, with the exceptions of optoelectronics with 9.8 percent and micro components with 8.1 percent.

By region, the statistics agency mentioned that the Asia-Pacific region is forecast to show the strongest growth rate of 23.5 percent, followed by Europe with 21.1 percent, Japan at 12.7 percent and the Americas with 11.1 percent.

Demand for notebooks is expected to remain robust through the end of 2021, and Taiwanese notebook and graphics card makers have reported strong sales for May.

According to DigiTimes foundry supply is expected to remain extremely tight throughout 2021, with some clients having already booked capacity for next year and even 2023.

Surging COVID-19 infections in Taiwan and Malaysia could further constraint notebook component supply: With Asia Pacific countries such as Taiwan and Malaysia witnessing COVID-19 infections surging, sources from the upstream supply chain believe shortages of notebook components could worsen.

Notebook, graphics card makers see strong May: Taiwan-based notebook and graphics card makers have reported strong sales for May and are poised to enjoy a strong second-quarter 2021.

Tight foundry capacity to persist throughout 2021: Taiwan-based pure-play foundries continue to see customers pull in orders despite concerns about overbooking and will see their fab capacity stay extremely tight throughout 2021, according to industry sources.

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