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Pandemic and Huawei were the main reasons for the growth in demand for chips
The coronavirus pandemic and the transition to remote work and study in 2021 have caused a sharp increase in demand for computers and gadgets. This, in turn, has led to an increase in orders for semiconductor components, according to analytical agency Gartner. The total volume of the chip market grew by 7.3% and amounted to $ 449.8 billion. However, partners of some companies had to increase supplies by 20% or more.
Xiaomi turned out to be the leader in terms of order volume growth – it spent 26% more on the purchase of chips in 2021 than a year earlier. This was primarily due to the online sales model that successfully fit into the pandemic realities and the weakening of competition with Huawei in the smartphone market due to the US sanctions against the latter. In addition, 2021 was a successful year for the company in the segments of the Internet of Things, smart TVs, wearable electronics and smart home appliances. Nevertheless, its share in global purchases is still only 2%.
Top 10 companies in terms of chip purchases in 2021 according to Gartner
Apple’s appetite increased slightly less – by 24%. But it topped the Gartner rankings as it accounted for 11.9% of chip shipments in 2021. The company’s need for more components was driven by the rise in demand for its laptops and tablets in self-isolation, as well as the release of new MacBooks with proprietary processors.
The second place is occupied by Samsung Electronics, which acquired semiconductor components in 2021 for an amount corresponding to 8.1% of the total market. Compared to 2021, purchases increased by 20.4%. Like Xiaomi, it was helped in this by the weakening of Huawei’s position under the yoke of sanctions. Also, the South Korean giant is faced with an increase in demand for its SSDs for data centers, provoked by the increased demand for cloud services due to the coronavirus.
Huawei’s situation is diametrically opposite – due to the ban of the US authorities to provide it with American technologies, it has reduced the volume of orders for chips by 23.5%. But a holy place is never empty, and instead of Huawei, other manufacturers began to order chips, which hastened to fill the resulting void in the market.