McKinsey: Semiconductor Industry Faces Decade of Growth

17. February 2022 | Market

E-mobility is not only driving demand for rare earths, the need for semiconductors will also increase significantly.


The global semiconductor industry could become a trillion-dollar industry in 2030, writes management consultancy McKinsey & Company in a recent analysis. In 2021, sales stood at 600 billion U.S. dollars.

Growth would be driven primarily by rising demand from the automotive industry. This is due in particular to the high demand for chips for the control electronics of e-cars and autonomous driving. The areas of computing and data storage are also expected to grow significantly in the future and increase chip consumption. As German newspaper Handelsblatt recently reported, semiconductors made of gallium nitride are likely to gain significant market share in these sectors in the future, even if they are currently still significantly more expensive than those made of silicon. The same applies to mobile communications applications, which McKinsey sees as a further driver of semiconductor demand.
In view of this forecast, companies should adjust research and development capacities, production facilities and materials purchasing accordingly, advises McKinsey partner Ondrej Burkacky.

According to McKinsey & Company, the currently tight supply of electronic components will not return to normal until next year, when the additional production capacities created are likely to have an impact on supply and demand.

Photo: iStock/kynny

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