Semiconductor Sector Shows Signs of Cooling

By George Leopold, EETimes (October 27, 2021)

There are indications the overheated semiconductor sector may be cooling off after roughly 18 months of record-breaking demand for silicon, wafers and production gear. However, demand for chip design services remained strong during the previous quarter, registering its highest annual growth rate in a decade.

Electronic system design revenues jumped 14.6 percent on an annual basis to $3.19 billion. The ESD Alliance also reported the industry’s four-quarter moving average, that compares the most recent four quarters with the previous year’s, rose 15.5 percent, the highest annual growth rate since 2011.

The IC design sector was driven by a 27 percent jump in revenues generated by systems-in-package tools. Computer-aided engineering, the combined printed-circuit board and multichip module category as well as EDA services all recorded double-digit growth during the second quarter.

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