Chip income rose 6.5% globally in 2020 following calendar year-close rush

By Stephen Nellis

(Reuters) – Worldwide semiconductor revenue rose 6.5% overall in 2020, as a restoration in the course of the final a few months of the 12 months aided offset a sharp dropoff in March and April, when pandemic keep-residence orders rolled out all over the globe.

World-wide profits have been $439 billion in 2020, according to facts from the Semiconductor Business Affiliation (SIA), a trade group that represents most U.S. chipmakers along with lots of intercontinental companies. The group said income from U.S. chipmakers were being about $208 billion, or about 47% of the overall.

Chip gross sales into the United States were $94.15 billion, up 19.8% from the previous calendar year.

Falan Yinug, SIA’s director of industry statistics and financial policy, reported significantly of the increase in U.S. paying for was driven by high-finish memory chips utilised in programs this sort of as data facilities.

American tech firms these types of as Amazon.com Inc, Microsoft Corp and Alphabet Inc’s Google all saw extraordinary rises in the use of cloud computing about the system of 2020 as enterprises tailored to performing from property.

When U.S.-centered corporations represented virtually fifty percent of semiconductor profits, they represented only about 12% of chip producing capability in 2020. That is down from 37% in 1990, as most U.S. businesses now source their chips from factories in Asia.

John Neuffer, president and main government of the industry team, stated laws passed last calendar year to provide incentives to chip factories in the United States could assistance adjust that figure this calendar year. The law could deliver funding to U.S. organizations this kind of as Intel Corp or GlobalFoundries, as very well as foreign corporations these as Samsung Electronics Co Ltd or Taiwan Semiconductor Production Co Ltd.

“About the upcoming 10 many years, semiconductor production is likely to increase 56%,” Neuffer mentioned. “We want to make absolutely sure we’re having a even larger piece of the manufacturing pie.”

(Reporting by Stephen Nellis in San Francisco Editing by Invoice Berkrot)