SCOTTSDALE, AZ – The global electronic systems market will grow 5% to $1.62 trillion in 2018, while the worldwide semiconductor market is expected to surge 14% this year to $509.1 billion, exceeding the $500 billion for the first time, according to IC Insights.

If the forecasts come to fruition, the average semiconductor content in an electronic system will reach 31.4%, breaking the all-time record of 28.8% set in 2017, says the firm.

Global unit shipments of cellphones, automobiles, and PCs are forecast to be weak in 2018, down 1%, up 3%, and down 1%, respectively. The disparity between the moderate growth in the electronic systems market and high growth of the semiconductor market is directly due to the increasing content of semiconductors in electronic systems, says IC Insights.

The increase in the average semiconductor content in electronic systems in 2018 is expected to be primarily due to the surge in DRAM and NAND flash ASPs and average electronic system sales growth this year. After slipping to 30.2% in 2020, the semiconductor content percentage is expected to climb to a new high of 31.5% in 2022.


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