Global semiconductor sales exceeded a half a trillion dollars for the first time last year, according to a top industry association, as chipmakers worked to meet high levels of demand amid a pandemic-induced global chip shortage.
Industry sales reached a record $555.9 billion last year, according to a report published by the Semiconductor Industry Association on Monday, rising 26.2% year-over-year. Chipmakers also shipped a record 1.15 trillion semiconductor units last year.
By region, semiconductor sales rose the most in China, totaling $192. 5 billion, up 27.1% annually, according to the SIA. Other markets like the Americas and Europe saw sales jump by 27.4% and 27.3% year-over-year, respectively, while Asia Pacific and Japan saw sales increase by 25.9% and 19.8%, respectively.
By semiconductor product, analog--microchips commonly used in vehicles, consumer goods and computes--had the highest annual growth rate of 33.1%, totaling $72 billion in sales. Logic and memory were the largest semiconductor cateriors by sales, grossing $154.8 billion and $153.8 billion, respectively, in 2021.
"In 2021, amid the ongoing global chip shortage, semiconductor companies substantially ramped up production to unprecedented levels to address persistently high demand, resulting in record chip sales and units shipped," said John Neuffer, president and chief executive officer at SIA, in a press statement. "Demand for semiconductor production is projected to rise significantly in the years ahead, as chips become even more heavily embedded in essential technologies of now and the future."
To tap into this explosive industry--which benefits from current trends like the shift towards electric vehicles, the rollout of 5G to power the growing "internet-of-things" industry, and the growth in cloud-computing, to name a few--exchange-traded funds (ETF) can provide investors with broad exposure to the industry.
Popular semiconductor ETF options include the VanEck Vectors Semiconductor ETF
