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Global semiconductor revenue to grow 13.6% to US$676b in 2022, says Gartner

Global semiconductor revenue is projected to total US$676 billion in 2022, an increase of 13.6% from 2021.

Technology and consulting firm Gartner Inc research vice president Alan Priestley in a statement on Tuesday (April 26) said the semiconductor average selling price (ASP) hike from the chip shortage continues to be a key driver for growth in the global semiconductor market in 2022, but overall semiconductor component supply constraints are expected to gradually ease through 2022 and prices will stabilise with the improving inventory situation.

He said that overall, the outlook for global semiconductor revenue has been increased from the previous quarter’s forecast by US$37 billion to US$676 billion.

He said automotive applications will continue to experience component supply constraints — particularly in microcontrollers, power management integrated circuits and voltage regulators — extending into 2023.

Slowing growth in PCs, smartphones and server end markets is expected to gradually slow down the growth of semiconductor revenue as semiconductor supply and demand gradually comes into balance during 2022, he said.

Semiconductor revenue forecast, worldwide, 2021-2023 (billions of US dollars)

 202120222023
Revenue ($B)595.0676.0700.5
Growth (%)26.313.63.6

Source: Gartner (April 2022)

Chip shortage

Gartner said the chip shortage will continue to be a concern for the supply chain of electronics equipment in 2022 and will have different effects in major electronic equipment markets depending on different semiconductor device types.

It said most semiconductor shortages eased in PCs and smartphones as production moved into the off season combined with increased semiconductor supply into the market. However, some semiconductor device types will continue to be in shortage in the automotive supply chain through late 2022.

Priestley said although unit production of automotive vehicles will grow below expectation at 12.5% in 2022, semiconductor device ASPs are expected to remain high due to continued tight supply driving the automotive semiconductor market to double-digit growth (19%) in 2022.

“Automotive HPC, EV/HEV and advanced driver assistance systems will lead the growth in automotive electronics sectors through the forecast period,” he said.

Memory market

Gartner said the memory market will remain the largest semiconductor device market through the forecast period and is projected to account for 31.4% of the overall semiconductor market in 2022.

It said DRAM and NAND are expected to be in undersupply in the second quarter of 2022.

Gartner said the NAND market will enter oversupply in the fourth quarter of 2022, while DRAM is expected to move into oversupply in the second half of 2023.

The combination of megabyte shipments and higher annual ASPs this year will sustain revenue growth for both markets in 2022, with projected growth of 22.8% for DRAM and 38.1% for NAND.

Migration to 5G

Semiconductor revenue for smartphones is forecast to increase 15.2% in 2022, as 5G smartphone unit production is expected to grow by 45.3% in 2022, reaching 808 million units and representing 55% of all smartphones produced.

Aggressive migration from 4G to 5G from major smartphone chipset vendors has temporarily led to a shortage in 4G system-on-chip integrated baseband ICs which began in the second half of 2021.

Rising 5G-integrated baseband IC inventory will result in declining prices for 5G smartphones and accelerate the penetration of 5G further through the forecast period.

Source: The Edge Markets

Global semiconductor revenue to grow 13.6% to US$676b in 2022, says Gartner


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Asian countries are moving in a swift and responsible manner in response to the call for a green transition arising from the steady stream of extreme climate events, according to a report released by the Boao Forum for Asia (BFA) on Wednesday (April 20).

By the end of 2021, 25 Asian countries had made net-zero pledges, said the BFA’s Sustainable Development: Asia and the World Annual Report 2022, reported Xinhua.

Aiming to enhance green governance, governments in Asian countries have taken measures including setting up high-level leading groups and committees overseeing the formulation and implementation of national net-zero strategies, defining decarbonisation goals and drawing up roadmaps to meet these targets, as well as establishing carbon emission trading systems, according to the report.

Asian countries sustained global mobilisation for green and sustainable finance despite the Covid-19 pandemic, as climate finance for Asia in 2020 accounted for around 50% of the global total, compared to 17% for Western Europe and 13% for the United States and Canada, the report said, citing the latest estimates from the Climate Policy Initiative.

The Asia-Pacific region ranked second in green bond issuance, accounting for 22.6% of the global total in 2021, while out of those bonds issued in Asia, 39% were denominated in the Chinese currency renminbi, according to the report.

Capital market solutions for green finance have also been developed in Asia, it said, highlighting the tightened regulatory requirements and standard-setting and the role of multilateral development banks in promoting green finance.

In terms of green technology, Asia-Pacific is a mature region in the global wind power market and Asia continued to drive new solar photovoltaic installations in 2020, the report said.

Asian companies are ambitious in the fight against climate change, with 440 of them signing up to the Science-Based Targets initiative, it said. These businesses have utilised multiple means of green transition including switching to renewable energy and setting sustainability governance structures.

Source: Bernama

Asia in action toward green transition, says report


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Global sales of semiconductor manufacturing equipment in 2021 surged 44% year-on-year to an all-time record of US$102.6 billion from US$71.2 billion, said Semiconductor Equipment & Materials International (SEMI).

In a statement on its website on Tuesday (April 12), the association said the data is now available in the Worldwide Semiconductor Equipment Market Statistics (WWSEMS) Report.

SEMI said China claimed the largest market for semiconductor equipment for the second time with sales expanding 58% to US$29.6 billion to mark the fourth consecutive year of growth.

It said South Korea, the second-largest equipment market, registered a sales increase of 55% to US$25.0 billion, after showing strong growth in 2020.

It said Taiwan logged 45% growth to US$24.9 billion to claim the third position.

It said annual semiconductor equipment spending increased 23% in Europe and 17% in North America, which continues to recover from a contraction in 2020. Sales in the rest of the world jumped 79% in 2021.

SEMI president and CEO Ajit Manocha said the 44% increase in manufacturing equipment spending in 2021 highlights the global semiconductor industry’s aggressive push to add capacity.

“This drive to expand production capabilities extends beyond the current supply imbalance, as the industry continues to ramp up to address a wide range of emerging high-tech applications that will enable a smarter digital world with countless social benefits,” he said.

SEMI said global sales of wafer processing equipment rose 44% in 2021, while other front-end segment sales grew 22%.

It said assembly and packaging showed exceptional growth across all regions, resulting in an 87% market increase in 2021, while total test equipment sales rose 30%.

Annual billings by region in billions of US dollars with year-on-year change rates

Region20212020% change
China29.6218.7258%
South Korea24.9816.0855%
Taiwan24.9417.1545%
Japan7.807.583%
North America7.616.5317%
Rest of the world4.442.4879%
Europe3.252.6423%
Total102.6471.1944%

Sources: SEMI and SEAJ, April 2022

Source: The Edge Markets

Global semiconductor equipment sales jumped 44% to record US$102.6b in 2021, says SEMI


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Investment in artificial intelligence start-ups hit a record high of US$59 billion (about RM249.84 billion) in 2021, up from US$28 billion in 2020.

In a report on Monday (April 11), Crunchbase — which tracks trends, investments and news of global companies from start-ups to the Fortune 1000 — said venture investment in AI start-ups will only continue to rise in the next five years.

It said that is because AI has finally reached a tipping point where it is powerful and affordable enough to make a real economic impact on diverse industries.

Crunchbase said AI is a broad category, but generally encompasses all “intelligent” software that can learn from itself in some capacity.

It said this can include machine-learning platforms and the software used by robots, and self-driving vehicles to interpret the environments around them.

It said that for decades, AI had been developed and used by computer scientists to train all kinds of autonomous systems.

But it said what had changed today is that AI is no longer stuck in the lab as it is the backbone of fast-growing start-ups with the potential to become multibillion-dollar businesses.

Crunchbase said companies in industries as diverse as finance, retail, healthcare, food production, manufacturing, logistics and transportation are deploying AI to improve everyday business processes, automate their workflows and, sometimes, to introduce autonomous robots.

Source: The Edge Markets

Investment in AI start-ups hit record high of US$59b in 2021 — data


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The International Data Corp (IDC) expects businesses in Asia Pacific (excluding Japan) to collectively spend US$32 billion (S$43.6 billion) on artificial intelligence (AI) in 2025, up from US$17.6 billion (S$24 billion) this year.

The banking industry is expected to drive the bulk of the AI spending as banks in the region increasingly leverage the technology for augmented threat intelligence and fraud analysis applications.

State/local governments will be the second-highest spender, focusing on public safety and emergency response, augmented threat intelligence, and prevention systems.

Professional services firms will also be investing heavily in AI in the next few years. The key focus area is augmented customer service agents, which help resolve customer issues. Smart business innovation and automation will optimise and streamline complex and repetitive business tasks to support organisational decision-making.

Chart: IDC

“Many of the changes caused by the pandemic will stay, and we expect the adoption momentum of practical AI use cases such as remote or contactless engagement to continue. In the long term, clear guidance on managing the associated risk factors of AI solutions will further boost the confidence level of buying organisations,” says Jessie Danqing Cai, associate research director for Cognitive Computing/Artificial Intelligence at IDC Asia/Pacific.

Vinayaka Venkatesh, senior market analyst at IDC IT Spending Guides for Customer Insights & Analysis, adds: “Increasing government regulations and mandates of AI’s trust, robustness, and its ethical use will need to be addressed by organisations. Customer-facing industries such as financial services, hospitality and tourism will take the lead in addressing these government mandates.”

Source: The Edge Singapore

AI spending in Asia Pacific to reach US$32 bil in 2025 — IDC


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Surging oil, gas and power prices together with the European Union’s (EU) goals of becoming less dependent on Russian supplies and post-Covid-19 pandemic inflation will catapult global energy spending this year to US$2.1 trillion.

According to Norway-based independent energy research and business intelligence company Rystad Energy, a concern in energy markets was that the ongoing war in Ukraine will derail the energy transition, but the latest data suggests that spending in green energies will grow faster than in the fossil fuel sector.

In a statement on Thursday (April 7), the firm said that without the invasion, however, there would have been less growth in investments in oil and gas and the share of green energies in global energy spending would be slightly more than today’s 31%.

Rystad said upstream oil and gas spending was now projected to grow 16% — or US$142 billion — compared with last year as oil and gas producers around the world up their investment budgets to increase output.

It said for green energy in 2022, based on the current pipeline of projects, global capacity would grow at 250 gigawatts (GWac) within wind and solar, and lead green energy spending to grow by 24%, or US$125 billion.

The firm said another important factor pushing energy spending to new highs was the global inflation of material prices, labour costs and shipping rates caused by the pandemic and the sanctions imposed on Russia.

It said compared with 2020 levels, project costs in oil and gas had increased by between 10% and 20%, due largely to steel price rises and a tighter market among suppliers.

It said within renewables, lithium, nickel, copper and polysilicon — which are all important materials in battery and solar PV manufacture — had sent renewable project costs up by between 10% and 35% within the same time frame.

Rystad head of energy service Research Audun Martinsen said the world was now spending more on energy than ever before.

“The year 2014 was the last time we saw similar numbers. One can see a major shift in the amount of spending on green energy, which has increased, with a drop in expenditure on oil and gas.

“However, expenditure on other fossil fuels, such as coal, has remained constant,” said Martinsen.

Europe’s energy mix

Rystad said that sourcing fossil fuels from alternative providers to Russia was just a temporary solution as the EU harboured a clear goal of reducing the bloc’s dependence on fossil fuel energy in general.

It said green energy — through solar and wind power, coupled with hydrogen and CCS initiatives — would be key to improving energy security but also delivering on member countries’ energy transition goals.

Rystad said the European Commission in March unveiled a plan to make Europe independent of Russian gas and the Commission’s REPowerEU body had set out a framework to target a 45% share of renewables in primary energy by 2030.

It said the framework demanded an overall 1,600 GWac of installed capacity in Europe by 2030.

In 2022, based on the current pipeline of projects, global capacity would grow at 250 GWac, and lead to green energy spending to grow by 24%, or US$125 billion.

Source: The Edge Markets

Oil and gas to lead global energy spend to a record US$2 trillion in 2022, says Rystad


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Global IT spending is projected to rise 4% year-on-year in 2022 to US$4.4 trillion (about RM18.56 trillion), according to technology and consulting firm Gartner Inc.

In a statement on Wednesday (April 6), Gartner distinguished research vice-president John-David Lovelock said this year is proving to be one of the noisiest years on record for chief investment officers (CIOs).

“Geopolitical disruption, inflation, currency fluctuations and supply chain challenges are among the many factors vying for their time and attention, yet contrary to what we saw at the start of 2020, CIOs are accelerating IT investments as they recognise the importance of flexibility and agility in responding to disruption.

“As a result, purchasing and investing preference will be focused in areas including analytics, cloud computing, seamless customer experiences and security,” he said.

Gartner said inflation impacts on IT hardware (e.g. mobile devices and PCs) from the past two years are finally dissipating and starting to spill over into software and services.

It said with the current dearth of IT talent prompting more competitive salaries, technology service providers are increasing their prices, which is helping to increased spending growth in these segments through 2022 and 2023.

The firm said software spending is expected to grow 9.8% to US$674.9 billion in 2022, while IT services are forecast to grow 6.8% to reach US$1.3 trillion.

Gartner said the rise of enterprise application software, infrastructure software and managed services in the near and long term demonstrates that the trend towards digital transformation is not a one- or two-year trend as it is systemic and long-term.

It said that for example, infrastructure as a service (IaaS) underpins every major consumer-focused online offering and mobile application, accounting for a significant portion of the almost 10% growth in software spending estimated for 2022.

Gartner expects digital business initiatives such as experiential end-consumer experience and optimisation of the supply chain to push spending on enterprise applications and infrastructure software into a double-digit growth in 2023.

The firm said the Russian invasion of Ukraine is not expected to have a direct impact on global IT spending.

It said price and wage inflation compounded with talent shortages and other delivery uncertainties are expected to be greater impingements on CIOs’ plans in 2022 but will not slow down technology investments.

Lovelock said CIOs anticipate having the financial and organisational ability to invest in key technologies throughout this year and next.

“Some IT spending was on hold in early 2022 due to the Omicron variant [of Covid-19] and subsequent waves but is expected to be cleared in the near term.

“CIOs who keep their eye focused on key market signals, such as the shift from analog to digital business and buying IT to building it, as well as negotiate with their vendor partners to assume ongoing risks, will fare better in the long term.

“At this point, only the most fragile companies will be forced to pivot to a cost-cutting approach in 2022 and beyond,” he said.

Worldwide IT spending forecasts (millions of US dollars)

 2021
spending
 2021 growth (%)2022 spending2022 growth (%)2023 spending2023 growth (%)
Data centre systems 207,306 6.7 218,634 5.5 230,385 5.4
Software614,49415.9674,8899.8754,80811.8
Devices809,45216.1824,6001.9837,8441.6
IT services1,185,10310.61,265,1276.81,372,8928.5
Communications services 1,443,419 3.4 1,448,396 0.3 1,477,798 2.0
Overall IT4,259,7739.54,431,6464.04,673,7285.5

Source: Gartner (April 2022)

Source: The Edge Markets

Global IT spending to reach US$4.4 trillion in 2022, says Gartner


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Policy reforms that improve tax collection and increase revenue can help Asian economies to achieve sustainable and inclusive economic growth.

Asian Development Bank (ADB) director of Macroeconomics Research, Abdul Abiad said such reforms must be carried out on a case-by-case basis, and in ways that do not stifle growth or create undue burdens on taxpayers.

“Developing Asia’s ageing population will require higher spending on pensions and healthcare while rising affluence will boost expectations for more and better public goods and services.

“Vast investments in clean energy are needed to tackle the threat of climate change; to meet these demands and others, countries will need to draw on the full range of private and public financial resources,” he said during the Asian Impact Webinar on Asian Development Outlook 2022, today.

He said solutions for governments to consider include a more efficient collection of value-added taxes, reforming tax incentives and bringing more businesses into the formal economy, as well as optimising personal income and property taxes.

According to ADB, with the reforms, developing Asia’s economies could increase tax revenue by an average of three to four percentage points.

For example, making it easier to register a business and lowering transaction costs could bring more small businesses into the formal economy, thus enhancing tax collection.

Abdul noted that in Southeast Asia, micro, small, and medium-sized businesses account for 98 per cent of all enterprises and 41 per cent of gross domestic product (GDP) as of 2020.

“Governments can also improve the collection of taxes from Asia’s burgeoning trade in digital services, which have more than tripled since 2005 to US$1.4 trillion (US$1=RM4.22) in 2020,” he said.

He also added that carbon pricing instruments and fossil fuel taxes have been proven to reduce pollution, and taxes on alcohol, tobacco and unhealthy food and drinks can raise revenue by up to 0.6 per cent of the GDP while leading to better health outcomes and reducing medical costs.

Source: Bernama

Policy reforms enable Asia to achieve sustainable, inclusive economic growth


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Global semiconductor industry sales rose 32.4% year-on-year (y-o-y) in February to $52.5 billion from US$39.6 billion a year earlier, said the US-based Semiconductor Industry Association (SIA).

In a statement on its website on Tuesday (April 5), SIA said the figure was 3.4% more than the January 2022 total of US$50.7 billion.

Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

SIA president and CEO John Neuffer said global semiconductor sales remained strong in February, increasing by more than 20% for the eleventh consecutive month on a y-o-y basis.

“Sales into the Americas continued to outpace other regional markets, increasing by 43.2% y-o-y in February,” he said.

SIA said that in addition to the year-to-year sales increase in the Americas, sales were up compared to February 2021 in Asia-Pacific/all others (41.4%), Europe (29.3%), China (21.8%), and Japan (21.6%).

Month-on-month sales increased in Asia-Pacific/all others (18.6%) and Europe (1.4%), but fell slightly in Japan (-1.3%), China (-2.3%), and the Americas (-3.0%).

Source: The Edge Markets

Global semiconductor sales rose 32.4% y-o-y in February to US52.5 billion, says SIA


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The global electronic system design (ESD) industry revenue increased 14.4% from US$3.03 billion in the fourth quarter of 2020 (4Q20) to US$3.47 billion in 4Q21.

The ESD Alliance, a Semiconductor Equipment & Materials International (SEMI) technology community in its latest Electronic Design Market Data (EDMD) report released on Monday (April 4) said the four-quarter moving average, which compares the most recent four quarters to the prior four, rose 15.8%.  

Executive Sponsor of the SEMI Electronic Design Market Data report Walden C. Rhines said the industry continued to report double-digit year-over-year revenue growth for 4Q21 and ended 2021 with US$13.2 billion total market revenue.

“Product categories Computer-Aided Engineering, Printed Circuit Board and Multi-Chip Module, Semiconductor Intellectual Property, and Services recorded double-digit growth for the quarter. Geographically, the Americas; Europe, the Middle East and Africa (EMEA); and Asia-Pacific (APAC) all reported revenue growth,” he said.

ESD Alliance said the companies tracked in the EDMD report employed 51,236 people globally in 4Q21, a 5.7% increase over the 4Q20 headcount of 48,478 and up 0.1% compared to 3Q21.

Revenue by region

ESD Alliance said the Americas, the largest reporting region by revenue, procured US$1.58 billion of electronic system design products and services in 4Q21, a 21% increase.

It said the four-quarter moving average for the Americas rose 17.2%.

Japan’s procurement of electronic system design products and services decreased 2.4% to US$222.8 million. The four-quarter moving average for Japan rose 1%.

APAC procured US$1.19 billion of electronic system design products and services in 4Q21, a 13.8% increase. The four-quarter moving average for APAC increased 18.9%.

Source: The Edge Markets

Global electronic system design industry 4Q21 revenue grew 14% y-o-y


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Global fab equipment spending for front-end facilities is expected to rise 18% year-on-year (y-o-y) to an all-time high of US$107 billion in 2022, marking a third consecutive year of growth following a 42% jump in 2021.

In its latest quarterly World Fab Forecast report released on Tuesday (March 22), the US-based Semiconductor Equipment & Materials International (SEMI) president and CEO Ajit Manocha said that crossing the US$100 billion mark in spending on global fab equipment for the first time is a historic ​milestone for the semiconductor industry.

“This ​significant achievement is a tribute to the relentless drive to add and upgrade capacity to address a diverse range of markets and emerging applications, solidifying expectations for long-term industry growth to enable electronics for the digital world,” he said.

Meanwhile, SEMI vice president of Corporate Marketing and the Market Intelligence Team Sanjay Malhotra said global fab equipment spending is forecast to have another healthy year in 2023 and is expected to remain above the US$100 billion mark.

“We expect global semiconductor capacity to maintain steady growth this year and in 2023,” he said.

Region

SEMI said Taiwan is expected to lead fab equipment spending in 2022, increasing investments 56% y-o-y to US$35 billion, followed by Korea at US$26 billion, a 9% rise, and China at US$17.5 billion, a 30% drop from its peak last year.

Europe/Mideast is forecast to log record high spending of US$9.6 billion this year, and while comparatively smaller, this would represent a staggering growth of 248% y-o-y.

Meanwhile, Taiwan, Korea and Southeast Asia are also expected to register record high investments in 2022.

In the Americas, the report shows fab equipment spending peaking at US$9.8 billion by 2023.

Capacity

SEMI said capacity growth is expected to continue increasing, rising 6% in 2023.

It said the fab equipment industry last saw a y-o-y installed capacity growth rate of 8% in 2010, when it topped 16 million wafers per month (200mm equivalents) – nearly half of the 29 million wafers per month (200mm equivalents) projected for 2023.

It said over 83% of equipment spending in 2022 will stem from capacity increases at 150 fabs and production lines, a proportion expected to edge down to 81% next year as 122 known fabs and lines add capacity.

SEMI said the foundry sector, with a share of about 50%, will account for the bulk of equipment spending in 2022 and 2023, followed by memory at 35%.

The two sectors also represent most of the capacity increases, it said.

Source: The Edge Markets

Global fab equipment spending to hit record US$107 billion in 2022, says SEMI


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GOVERNMENTS around Southeast Asia (SEA) are prioritising investments to strengthen digital capabilities among local enterprises. Particular in Malaysia, we have seen both the public and private sector put in place an increasing number of upskilling initiatives, many of which focus on equipping the current and future workforce with the skills needed to meet the demands of a digital-first economy. For instance, under the recently announced RM4.8 billion JaminKerja Keluarga Malaysia initiative, the Malaysian government aims to provide various training and skills upgrading programs in where a priority is given to equipping Malaysians with digital skills.

As these initiatives encourage firms to accelerate technology adoption, hiring and training to address immediate digital skills gaps across all functions, there are four areas that they can focus on to gain a competitive advantage in the digital-first economy.

Commerce

Every business is a digital business today. While the initial stages of the pandemic in 2020 saw a frantic rush to e-commerce, 2021 was more about adapting to ongoing uncertainty.

As businesses recalibrate for 2022, online retail spending is expected to grow. Consumers have enjoyed an explosion of choices over the past 18 months, and personalisation will be the key differentiator for brands to stand out. Businesses that invest in omnichannel commerce capabilities will be able to optimise their personalisation efforts and deliver relevant experiences across touchpoints, improving customer loyalty and retention.

For example, Aldo, who operates 80 stores across Malaysia, Singapore, Thailand, and Indonesia, revitalised their online stores with Adobe Commerce. They integrated its websites and offline point-of-sales into a single cloud inventory, gaining the ability to scale quickly and the flexibility to manage complex, personalised promotions – which in turn ensured that they delivered a local e-commerce experience to their customers across the region.

Content creation

While the Metaverse may seem like a futuristic sci-fi concept, investing in your team’s capabilities now to create for the 3D, VR, AR space will futureproof your business. Beyond the gaming and entertainment industries, businesses globally are increasingly experimenting with new forms of digital and 3D content, NFTs, retail formats, and engagements with customers in the Metaverse.

Amazon, for example, creates immersive shopping experiences with photorealistic 3D assets for key product categories, including furniture and fittings. Customers can spin a product 360 degrees to inspect it from every angle or use Amazon’s “View in Your Room” feature to preview what furniture will look like in their homes. By doing this, Amazon is not only bringing shoppers closer to the products and enhancing their online shopping experience, but also accelerating content velocity by eliminating the need to manufacture prototypes and take photos of millions of products.

And with the Metaverse gaining momentum, there will also be new streams of digital customers, digital journeys, and data to track and manage.

Effective customer data management

As brands increasingly shift their focus to first-party data in preparation for the deprecation of third-party cookies, there will be new data privacy challenges as well as opportunities to tap into.

Effective customer data management requires the right technology and platforms and demands strategic collaboration across internal teams – including IT, marketing, finance, and legal – as well as a corresponding shift in skills and mindset among the employees. Functional teams will need to develop new skills to understand how and where data can be leveraged to inform decisions and connect all possible touchpoints where data can be collected from, tested, and refined to improve customer experiences.

U Mobile, for instance, launched its refreshed website and customer experience delivery platform, powered by Adobe Experience Cloud, to enhance personalised and individually tailored experiences for its Malaysian customers. Today, U Mobile is able to have greater autonomy and agility in managing content to deliver an enahnced, trilingual customer experience to help the telco better service their customers on digital channels.

Hybrid work

Businesses organised for speed, collaboration and innovation are best positioned to turn possibilities into commercial opportunities. However, many organisations today are being constrained by outdated working practices and technology, stifling creativity and speed to market. While the trend of hybrid work is here to stay, many SEA firms are not ready to embrace this future – posing a further challenge to talent acquisition and retention. Organisations must reorientate for agility by modernising working practices and technology infrastructure – including document processes and workflows and collaboration tools – and adapting to a hybrid working world.

Looking ahead in 2022, change is here to stay. Now that consumers are rewired for digital, their expectations for personalised experiences have intensified. SEA businesses must create change at every level of their organisation to compete in the digital-first economy – from embracing first-party data to increasing experience investment.

This article is contributed by Adobe managing director, Southeast Asia & Korea, Simon Dale.

Source: The Sun Daily

4 digital capabilities SEA businesses should focus on in 2022


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The US-based Semiconductor Equipment & Materials International (SEMI) is expecting another healthy year for the global semiconductor industry in 2022.

In an exclusive interview, SEMI president and CEO Ajit Manocha (pictured) said the longer-term growth outlook is exceptional and exciting, with projections pointing to the industry more than doubling revenue to approximately US$1.3 trillion (RM5.43 trillion) by 2030.

In an email interview with theedgemarkets.com, Manocha said that during the current chip shortage, one major benefit for the industry has been the broader realisation that semiconductors are ubiquitous building blocks, omnipresent in all electronic devices.

He said accelerating digital transformation and the convergence of AI, IoT, AR/VR, (Internet of Things, artificial intelligence, augmented reality/virtual reality) quantum computing, autonomous machines and many other emerging technologies will touch virtually every end market, resulting in tremendous opportunities ahead for the semiconductor industry.

“I truly believe [that] this is the most exciting time in the industry’s history,” he said.

Challenges

Manocha said the industry had witnessed unprecedented challenges with the Covid-19 pandemic and increasing geopolitical tensions in the past few years.

However, he explained that the semiconductor industry has coped well and shown strong growth.

He added that while there are still challenges on those fronts, a more serious obstacle to industry growth is the widening talent gap.

“The industry is expanding operations and production capacity to address the current chip shortage and to prepare for growing demand, but the workforce shortage is more difficult to overcome in a short time span.

“SEMI is diligently working with our member companies and partners from industry, government and academia to build on our holistic workforce development program to address STEM (science, technology, engineering and mathematics) education [in] schools and university, through an industry worker’s career path,” he said.

Resources

Manocha said the recent helium shortage is due to a number of factors: declining production at the world’s largest helium source – the US government’s Bureau of Land Management facility in Amarillo, Texas, plus long outages at other helium facilities in the US and Algeria.

“That said, SEMI is working closely with the industry and relevant governments, and the various helium sources to avoid disruptions in supply,” he said.

Helium is an important element in the processing of silicon into functioning chips done in a fabrication facilities (fabs).

Lessons from pandemic

Manocha said the most important lesson from the pandemic has been how crucial semiconductors are to all facets of lives.

He said within the semiconductor industry, companies used lessons from the pandemic to revamp and expand business continuity plans to mitigate future manmade and natural disasters.

He explained that additionally, companies in the industry have taken a huge step forward in advancing remote diagnostics and smart manufacturing in general.

“At SEMI, we had to shift a lot of our in-person events to a virtual format over the past couple of years.

“While there were a lot of lessons around this and our broader digital transformation, I do feel a key lesson during the pandemic has been how much people miss attending face-to-face events.

“We are definitely looking forward to SEMICON Southeast Asia’s return to Malaysia and getting back to networking with colleagues in the region,” he said.

Clean energy

Manocha said SEMI member companies and their executives are very committed and focused on sustainability.

“It is clear that key stakeholders – such as investors, current and potential employees, governments and customers – care deeply about this issue.

“The SEMI Sustainability Initiative is helping to align the industry on goals and further BKMs (best known methods) around clean energy,” he said.

Chip shortages

Manocha highlighted that while the semiconductor industry, including chip and equipment manufacturers, is working very closely with the industries that use chips in order to meet demand, SEMI has taken a leading role in bringing together the key players to mitigate a similar shortage situation in the future.

He said SEMI has launched a survey for participants to better understand the impact they are seeing and the collaborative actions that can be taken to prevent this from happening again.

Secondly, he said SEMI has worked to raise the awareness of the situation.

“I have personally spoken with top government officials, industry leaders and visionaries to highlight the dire situation so that they can help to alleviate near term pain.

“Finally, the industry is investing significantly to add production capacity.

“The SEMI World Fab Forecast database is tracking 86 fabs with major capacity coming online between 2020 and 2024.

“Semiconductor fabs cost billions of dollars to build and can take two years to bring online, so it does take time to see [the] impact of these incredibly complex facilities,” he said.

Source: The Edge Markets

Global semiconductor equipment materials industry revenue to hit US$1.3tril by 2030, says SEMI


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Global semiconductor industry sales rose 26.8% year-on-year to US$50.7 billion in January 2022, from US$40 billion a year earlier, said the US-based Semiconductor Industry Association (SIA).

In a statement on its website on Thursday (March 3), SIA said the figure was 0.2% less than the December 2021 total of US$50.9 billion.

Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

SIA president and CEO John Neuffer said following record sales and units shipped in 2021, global semiconductor sales remained strong at the beginning of 2022, reaching the second-highest-ever monthly total in January.

“Global sales in January increased by more than 20% for the tenth consecutive month on a year-to-year basis, and sales into the Americas increased by 40.2% year-to-year in January to lead all regional markets,” he said.

SIA said that in addition to the year-to-year sales increase in the Americas, sales were up compared to January 2021 in Europe (28.7%), China (24.4%), Asia Pacific/All Other (21.0%), and Japan (18.9%).

Month-to-month sales increased in Europe (3.4%) and Asia Pacific/All Other (0.4%), but fell slightly in China (-0.7%), the Americas (-1.1%), and Japan (-1.3%).

Source: The Edge Markets

Global semicon sales rose 27% y-o-y in January to US$50.7 billion, says SIA


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Southeast Asian countries are focusing on going the sustainable way via clean energy and a green economy, with specific strategies and actions to accelerate the energy transition, according to the ASEAN Centre for Energy (ACE).

In a report, the agency said that Thailand is taking steps to curb carbon emissions in its energy and transport sectors under its 2022 national energy plan, in order to return to a cleaner economy.

It noted that Thailand’s greenhouse gas emissions amounted to an average of 350 metric tonnes of carbon dioxide equivalent per year.

Meanwhile, the Philippines is focusing on earth-friendly energy, with one of its largest power retailers planning to tap nuclear, solar and wind energy to power its way to green energy transition.

Elsewhere in the region, Indonesia’s state-owned oil and natural gas firm, Pertamina plans to install rooftop solar power plants at its 5,000 gas stations.

Singapore is also looking to diversify its energy sources by exploring hydrogen and nuclear power for energy resilience and energy security, and to reduce its carbon footprint, said ACE.

The report highlighted that around 95 per cent of the republic’s electricity is generated through using natural gas, which carries serious risks.

In terms of the capital markets, Malaysia is ahead of its ASEAN peers in sustainable and responsible investing (SRI).

As of November last year, the country’s sukuk issuance stood at US$3.9 billion (US$1=RM4.18), or 56 per cent of ASEAN’s total SRI sukuk issuance.

“This significantly improves the implementation of environmental, social and governance strategies and practices amidst the evolving global finance and investment landscape”, the report said.

The ACE is an intergovernmental organisation within the ASEAN structure that represents the 10 member states’ interests in the energy sector.

Source: Bernama

Southeast Asia ramps up energy transition initiatives


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Asean manufacturers saw an improvement in business conditions last month, according to IHS Markit Purchasing Managers’ Index (PMI) data.

The latest survey results showed demand continued to rebound, as order book volumes rose at the fastest pace since October last year, with factory production expanding solidly as a result. At the same time, inflationary pressures remained elevated.

Input costs rose steeply, albeit at the slowest pace for five months, while goods producers raised their charges at the quickest rate on record. At 52.5 in February, the headline PMI pointed to a fifth successive monthly improvement in the health of the Asean manufacturing sector.The latest figure was little-changed from January’s reading of 52.7 and remained among the highest on record. Manufacturing conditions improved in six of the seven constituent Asean nations in February.

or the third month running, Singapore registered the highest headline figure, which at 58.3 in February, signalled the quickest upturn in the health of the manufacturing sector on record.

Second in the rankings was Vietnam, where business conditions improved at the fastest pace since last April (PMI at 54.3).

The Philippines registered a return to expansion territory midway through the first quarter of 2022. The headline Index rose from 50.0 in January to 52.8 in February, indicative of a marginal improvement in the health of the sector.

Growth also accelerated in Thailand, with the headline PMI hitting a fresh series high of 52.5 and signalling a strong overall upturn.

Meanwhile, Malaysia too saw an accelerated pace of growth during February, although at 50.9, the headline figure pointed to only a mild improvement in conditions overall.Indonesia was the only nation to record a slower pace of improvement in manufacturing conditions during February.

Source: The Star

Asean manufacturers see improved conditions


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THE pandemic-driven surge in demand for online goods and services has spurred digitalisation as the world went into lockdown. As a result, big-tech companies have enjoyed strong revenue and earnings growth in 2020 and 2021 driving their share prices up.

However, we see signs of an earnings slowdown in 4Q21, with big names like Amazon and Apple facing supply chain disruptions, and Meta Platforms experiencing the impact of Apple’s new privacy policies.

The strong earnings growth delivered by internet companies over the past year may be difficult to sustain in the coming quarters, which could put a lid on further share price appreciation for the time being.

Share price performance of the O’Shares Global Internet Giants ETF

Earnings growth has declined from peak growth in late 2020 and early 2021

Corporate digital transformation the next growth driver

Within the digital economy sphere, we expect segments that are exposed to corporate demand, such as cloud, software-as-a-service (SaaS), and cybersecurity to do well in the coming years. The pandemic was a wake-up call for businesses to speed up the adoption of technology in order to remain competitive as the global economy becomes increasingly digitalised.

Among the big-tech companies, Microsoft and Google have managed to outperform the other big tech players over the past few quarters. A key reason for this is because both these companies are more exposed to corporate demand, offering cloud, digital advertising, and a variety of software products and services. This goes to show that corporate digital transformation will likely be the next growth driver for the digital economy.

Based on our analysis, leading US vendors confirm that corporates have begun implementing a big push towards digital transformation. Additionally, corporate digital transformation will also drive the growth of the cloud computing industry.

From a Goldman Sachs IT spending survey, the majority of the 100 CIOs interviewed expect IT spending to increase from last year, with cloud adoption to double over the next three years.

Although we are not extremely bullish on the near-term prospects of the digital economy, in the long-term, we remain positive on the growth of the digital economy and expect a smooth uptick in demand for digital services as corporates ramp up their digitalisation efforts.

Nasdaq 100 versus the US 10 year treasury rate – 2 year

Companies that have higher exposure to corporate demand are doing well, such as Microsoft and Google

Digital transformation opportunities hold for traditional industries

In the long-term, the growth potential for the digital economy is significant, as many industries have yet to embark on a large scale digital transformation. Over the past decade industries that have gone ahead in digital transformation include the retail, entertainment, and advertising industries which are led by the Internet giants.

However, many industries, including logistics, supply chain, and manufacturing lag behind. But the tides are turning and these industries are expected to catch up over the next few years, making the digital economy an ever more significant aspect of economies.

In the case of the logistics industry, several catalysts including the recent labour shortages in the US, as well as the supply chain disruptions may potentially speed up the pace of digital transformation.

The unemployment rate in the US has plunged to a 22-month low of 3.9 per cent in December 2021, suggesting the labour market is rapidly tightening. As companies scramble for scarce workers, wages are expected to jump to 3.9 per cent in 2022.

Alongside the tight labour market comes the supply chain disruptions, which have resulted in delays across the world. The industry is disrupted across all layers from truck drivers to port managers, to shipping companies, and to businesses.

Bottlenecks persist due to many market inefficiencies. For example, unlike the many seamless apps in e-commerce or e-services, the logistics industry lacks such a smooth seamless booking system, which has exacerbated the disruptions.

Hence, the shortages of manpower and inefficiencies in the logistics industry have pushed companies to accelerate their digital transformation process towards smart factories/manufacturing, which includes automation and transferring workloads to the cloud. According to MarketsandMarkets, the smart factory market is expected to grow at an 11 per cent CAGR from 2021 till 2026 to US$135 billion.

The digital transformation of such industries would in turn drive demand for enterprise softwares such as cloud, software, cyber security and database management, which makes up a total of 44 per cent of the O’Shares Global Internet Giants ETF.

In the near-term, supply chain disruptions should continue to impact Internet companies as goods are delayed. But, in the long-term, we expect these disruptions to spur companies towards digital transformation, reiterating our thesis about the digital economy becoming an ever more significant aspect of economies.

Cloud & SaaS to grow more than double the rate of other digital economy segments

Automation to drive digital transformation

Wages in the US on the rise

Maintain neutral on near-term risks

To sum up, in the long-term we are positive on the digital economy. Digital transformation of corporates and industries is expected to be a growth driver for the digital economy, and we like that the O’Shares Global Internet Giants ETF gives higher exposure to attractive segments such as enterprise software.

It is for this reason we recommend investors to include the digital economy as part of their core allocation.

However, US big-tech stocks have reached record highs as companies continued to beat earnings estimates, pushing valuations to a record high. While share prices of Internet companies have come down recently, as of February 16, 2022, the O’Shares Global Internet Giants ETF is still trading at 44X 2023 earnings, suggesting that it is more or less fairly valued based on the fair PE multiple of 45-times we have assigned for this sector.

The strong earnings growth seen over the past year may be difficult to sustain in the coming quarters. This, coupled with regulatory risks, and a rising interest rate environment may limit the upside of Internet companies in the near-term and hence we maintain a 2.5 Stars neutral rating for the digital economy.

Investors who have yet to include the digital economy in their portfolios but wish to do so at this point may consider using a regular savings plan, before switching to a lump sum investment should valuations come down even further. This will ensure that they buy more units when prices are low and less when prices are high, bringing the weighted average cost down.

For investors looking for actively managed funds to gain exposure to the digital economy, you may consider the TA Global Technology Fund.

Source: The Borneo Post

Digital Economy: Long-term growth, but limited upside


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Since the valuation of the US tech sector fell and the Chinese technology stocks were hit by regulatory and other policy factors, the Asian technology sector has become increasingly attractive.

It is expected that this sector would be led by the new economy and semiconductor stocks. Asian semiconductor is a sector you should watch out for.

This sector covers semiconductor companies in various regions, including South Korea, Japan, Taiwan, China and so on. Companies from these regions have their own competitive advantages in the industrial chain.

For instance, South Korea is home to the world’s leading memory chip manufacturers. Also, it has a considerable-scale foundry business.

Japan has advantages in semiconductors in terms of raw materials and equipment, while its strength in automotive chip manufacturing should not be ignored as well.

Taiwan is a world leader in semiconductor manufacturing, and it dominates the foundry market at over 50 per cent of the global market share.

At the same time, the rise of China’s semiconductor industry is just around the corner with the policy support from the Chinese government.

It is undeniable that Asia plays a pivotal role in the global semiconductor industrial chain.

Looking back at last year’s performance, FactSet Asia Semiconductor Index, which represents the Asian Semiconductor Sector, significantly outperformed the MSCI Asian Index by 24.9 percentage points.

As the earnings growth of Asian semiconductor companies remains strong this year, we expect this sector to remain strong and beat the overall Asian equity market. As such, investing in ETF is a good way to tap into this sector.

In this article, we will talk about Global X Asia Semiconductor ETF (3119.HK), the only ETF related to Asian Semiconductor on HKEX.

Chart shows the top 10 holdings and geographic breakdown.

Global X Asia Semiconductor ETF focusing on Asian semiconductors

Currently, Global X Asia Semiconductor ETF is the only ETF focusing on the Asian Semiconductor industry listed on HKEX.

Issued by Mirae Asset Global Investment Group on 23 July 2021, Global X Asia Semiconductor ETF primarily uses a full replication strategy to track FactSet Asia Semiconductor Index.

This index was launched on June 29, 2021 with a base date set on 24 March 2017. It is designed to track the performance of companies in Asian regions that derive the majority of their revenues (revenue exposure with more than 50 per cent) from a semiconductor-related industry and demonstrate “Market Leadership”.

As to the definition of “Market Leadership”, the index provider, FactSet, makes use of its RBICS Focus System for stock selection. Besides, these companies should generate USD 10 billion or more revenue in the latest fiscal year or rank among the global top five in a segmented semiconductor sector in terms of USD revenue.

Currently, this index holds 39 stocks, but the top 10 holdings take up 68.2 per cent in total, which means it has a relatively concentrated investment.

The top 10 holdings shows the feature of this index again: an overview of market-leading semiconductor companies from key Asian regions (China, Japan, South Korea and Taiwan).

There are four iconic companies from Japan, which includes: Sony – a leader in image sensor technology, Tokyo Electron – one of the top three semiconductor equipment makers globally, as well as Shin-Etse and HOYA – global leaders in upstream semiconductor materials.

Three companies come from Taiwan, which are: TSMC–the largest market share in the foundry business, United Microelectronics – the local status of foundry business only second to TSMC, and MediaTeck – one of the two major suppliers in smartphone SoC (system on chip).

South Korea has two well-known companies in the top holdings and they are familiar to the investors, which are: Samsung and SK Hynix – they take up 74 per cent of the DRAM market shares in the world, also with a sizable NAND market share.

There is also a Chinese company LONGi, which is the world’s leading photovoltaic product manufacturer.

As for the geographic breakdown, Japan occupies the largest portion of the index (30.28 per cent), followed by China (26.14 per cent), Taiwan (25.20 per cent) and South Korea (18.36 per cent), which is quite balanced.

It is not hard to understand why the portion of Japan is the largest.

Japan’s strengths in semiconductors are in raw material, equipment and integrated device manufacturer with matured development.

Although China’s global market share remains relatively low at the moment, it may catch up soon with strong national policy support. It will see strong potential growth.

Chart shows performance comparison.

Index performance

As this ETF is newly established, we cannot analyse its track record in detail. However, based on the long-term accumulative returns of its tracking index, the FactSet Asia Semiconductor Index, the performance is exponential.

From Chart 2, as at December 31, 2021, the accumulative return rate stood at 170.5 per cent since March 24, 2017, outperforming MSCI AC Asian Technology Index (138.4 per cent) and MSCI Asia Index (32.6 per cent).

Global digital transformation has been accelerated by the breakout of Covid-19. Meanwhile, the semiconductor industry is probably the most crucial sector in technology development, which has a structural growth in the past two years.

Thus, this index records an exponential growth in 2020 (48.03 per cent) and 2021 (21.26 per cent), significantly outcompeting MSCI Asia Index’s 17.88 per cent and minus 3.67 per cent at the same period.

Table shows calendar year performance of indexes.

Conclusion

Currently, Global X Asia Semiconductor ETF’s ongoing charges over a year are 0.68 per cent. As at January 27, 2021, its total net asset value has reached HK$124 million over half a year since the launch date on 23 July, which is quite favoured by investors.

However, the ETF’s top 10 holdings take up a large proportion of the ETF, which means that it has high concentration risks. Also, its average daily trading volume is relatively small.

Despite the abovementioned disadvantages, investors who are optimistic about the future of the Asian semiconductor industry and intend to invest in ETF, investing in Global X Asia Semiconductor ETF, which tracks the FactSet Asia Semiconductor Index, would be a great choice.

Source: The Borneo Post

Asian semiconductor is a sector you should watch out for


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The Organisation for Economic Cooperation and Development (OECD) and ASEAN inked a memorandum of understanding (MoU) aimed to accelerate the region’s digital transformation by better managing some of the associated and growing risks, challenges and disruptions.

The MoU was signed in conjunction with the Ministerial Conference on the OECD Southeast Asia Regional Programme (SEARP) in Seoul, South Korea, which was held in hybrid format on Wednesday (Feb 9).

Through the MoU, OECD and ASEAN will assess the connectivity divides in Southeast Asia to facilitate improvements in the quality of broadband services across the region.

According to the OECD Secretary General Mathias Cormann, during the pre-pandemic era, Southeast Asia was one of the fastest growing digital economies with the number of digital consumers growing from 90 million in 2015 to 250 million in 2018.

It increased further to 300 million digital consumers in 2020, turbocharged by the Covid-19 related lockdown.

Nevertheless, he noted that uptake, penetration and infrastructure in communication and information technology remained uneven across and within countries in Southeast Asia.

“Broadband for example remains more accessible and faster in urban environments than in rural and remote areas,” he said.

Building a digital future would require a coordinated whole of government approach, he said adding that this would also include investing in communication infrastructure and digital skills to narrow existing digital divides among people, regions and businesses.

He stressed the importance of investing in digital skills which will ensure everyone has the best possible opportunity to participate in and benefit from the digital economy.

Source: Bernama

OECD, ASEAN to work on accelerating region’s digital transformation


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The semiconductor shortage and the COVID-19 pandemic disrupted global original equipment manufacturers’ (OEMs) production in 2021, but the top 10 OEMs increased their chip spending by 25.2% and accounted for 42.1% of the total market.

In a statement on Tuesday (Feb 1), technology and consulting firm Gartner Inc research director Masatsune Yamaji said semiconductor vendors shipped more chips in 2021, but the OEMs’ demand was far stronger than the vendors’ production capacity.

Gartner said the semiconductor shortage prevented OEMs from increasing production of not just those for vehicles but also various electronic equipment types, including smartphones and video game consoles.

However, it said the chip shortage significantly increased selling prices, which meant OEMs spent much more on semiconductor procurement in 2021 than in prior years.

Yamaji said the average selling prices (ASPs) of semiconductor chips, such as microcontroller units, general-purpose logic integrated circuits, and a wide variety of application-specific semiconductors, increased by 15% or more in 2021.

“The semiconductor shortage also accelerated OEMs’ double booking and panic buying, causing a huge spike in their semiconductor spending,” he said.

Gartner said Apple and Samsung Electronics retained the top two spots since 2011 while swapping ranks through the years.

Huawei struggled to buy chips and dropped down from the No 3 spot to the No 7 position in 2021.

Other Chinese smartphone OEMs, such as BBK Electronics and Xiaomi, significantly increased their semiconductor spending as they successfully compensated for the loss of market share by Huawei in the smartphone market in 2021.

Apple remained at the top of the semiconductor spending customer ranking in 2021. Apple increased its spending on memory chips by 36.8% and on non-memory chips by 20.2% in 2021.

However, it decreased its demand for computing microprocessing units due to the shift to its own in-house-designed application processors.

Samsung Electronics increased its memory spending by 34.1% and non-memory chip spending by 23.9% in 2021.

The increase of memory spending was the result of not just a rise of memory price, but also Samsung’s growth in its target electronic equipment markets, especially the smartphone and solid-state drive markets.

Source: The Edge Markets

Top 10 semiconductor buyers increased chip spending by 25.2% in 2021, says Gartner


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Global semiconductor revenue rose 25.1% in 2021 to total US$583.5 billion (about RM2.44 trillion), crossing the US$500 billion threshold for the first time.

In its preliminary results released last week, technology research and consulting firm Gartner Inc research vice-president Andrew Norwood said as the global economy bounced back in 2021, shortages appeared throughout the semiconductor supply chain, particularly in the automotive industry.

“The resulting combination of strong demand as well as logistics and raw material price increases drove semiconductors’ average selling prices higher, contributing to overall revenue growth in 2021,” he said.

Norwood added that the 5G smartphone market also helped drive semiconductor revenue, with unit production more than doubling to reach 555 million in 2021, compared with 250 million in 2020.

“US sanctions imposed on Huawei resulted in other Chinese smartphone OEMs (original equipment manufacturers) gaining share and fuelling growth for 5G chipset vendors such as Qualcomm, MediaTek and Skyworks.

“Meanwhile, HiSilicon, Huawei’s chip subsidiary, saw revenue decline from US$8.2 billion in 2020 to around US$1 billion in 2021,” he said.

Gartner added that Samsung Electronics regained the top spot from Intel for the first time since 2018, with revenue increasing 31.6% in 2021.

Its memory revenue grew 34.2% in 2021, in line with the growth rate of the overall memory market.

Intel dropped to the No. 2 position with a 0.5% growth in 2021, delivering the lowest growth rate among the top 25 vendors.  

Top 10 semiconductor vendors by revenue worldwide in 2021 (millions of US dollars)

2021 rank2020 rankVendor2021 revenue2021 market share (%)2020 revenue2020-2021 growth (%)
12Samsung Electronics75,95013.057,72931.6
21Intel73,10012.572,7590.5
33SK Hynix36,3266.225,85440.5
44Micron Technology28,4494.922,03729.1
55Qualcomm26,8564.617,63252.3
66Broadcom18,7493.215,75419.0
78MediaTek17,4523.010,98858.8
87Texas Instruments16,9022.913,61924.1
910NVIDIA16,2562.810,64352.7
1014AMD15,8932.79,66564.4
  Others (outside top 10)257,54444.1209,55722.9
  Total semiconductor583,477100.0466,23725.1

Source: Gartner (January 2022)

Source: The Edge Markets

Global semiconductor revenue rose 25.1% in 2021, breached US$500b mark, says Gartner


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The global electronic system design (ESD) industry’s revenue rose 17.1% year-over-year (y-o-y) to US$3.46 billion from US$2.95 billion in the third quarter of 2021 (3Q2021).

In a statement on its website Jan 17, US-based Semiconductor Equipment & Materials International (SEMI) cited the Electronic System Design Alliance (ESD Alliance) as saying the four-quarter moving average, which compares the most recent four quarters to the prior four, rose 16.1%.  

ESD Alliance is a SEMI technology community, an international association of companies providing goods and services throughout the semiconductor design ecosystem.

SEMI Electronic Design Market Data (EDMD) report executive sponsor Walden C Rhines said the industry reported double-digit y-o-y revenue growth for 3Q2021.

“Geographically, all regions reported double-digit growth, with product categories CAE, printed circuit board and multi-chip module, SIP, and services also showing double-digit growth,” he said.

The companies tracked in the EDMD report employed 51,182 people globally in 3Q2021, an 8.7% increase over the 3Q2020 headcount of 47,087 and up 2.4% compared to 2Q2021.

Source: The Edge Markets

Global electronic system design revenue up 17% y-o-y to US$3.46b in 3Q2021, says SEMI


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Global semiconductor industry sales rose 23.5% year-on-year in November to US$49.7 from US$40.2 billion a year earlier.

In a statement on its website on Jan 3, the US-based Semiconductor Industry Association (SIA) said the figure was 1.5% more than the October 2021 total of US$49.0 billion.

It said the cumulative annual total of semiconductors sold through November 2021 reached 1.05 trillion, which is the industry’s highest-ever annual total.

Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

SIA president and CEO John Neuffer said global semiconductor sales remained strong in November, increasing substantially on a year-to-year basis across all major regional markets and semiconductor product categories.

“With one month of 2021 sales data still to be reported, the industry has already set a new annual record for total semiconductor sales and units shipped, as chipmakers have substantially ramped up production to address high demand,” he said.

SIA said that regionally, year-to-year sales increased in the Americas (28.7%), Europe (26.3%), Asia-Pacific/all others (22.2%), China (21.4%), and Japan (19.5%).

Month-to-month sales increased in the Americas (4.2%), Europe (3.1%), Japan (1.1%), and Asia-Pacific/all others (0.9%), but fell slightly in China (-0.2%).

Source: The Edge Markets

Global semiconductor sales rose 23.5% y-o-y in November to US$49.7 billion, says SIA


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Investment in biotech and healthcare boomed during the Covid-19 pandemic as thousands of venture capital (VC) firms turned their attention to breakthrough artificial intelligence, cancer-detection technology, mental health treatments, digital doctor visits, diagnostics and more.

In a report on Wednesday (Dec 29), Crunchbase, which tracks trends, investments and news of global companies from start-ups to the Fortune 1000, said two of those investment firms had emerged as major leaders, not only in the number of biotech funding rounds led, but also in overall dollars invested in the industry.

It said Boston-based RA Capital Management and New York-based OrbiMed ranked first and second respectively on the two lists compiled using Crunchbase data.

The report said although the two firms emerged as leaders in the data, they still made up a small part of the more than US$120 billion (about RM500.46 billion) in venture capital funds globally that poured into health and biotech start-ups as of Dec 1 this year.

Crunchbase said while health and biotech are often almost inextricably linked, it’s worth noting that of that investment, a significant portion is heading directly to companies that place themselves specifically in the biotechnology category.

Venture capital firms led most funding rounds for biotech start-ups 

The report said leading a funding round is a big undertaking.

It said the lead investor often acts as the liaison between the start-up’s founder(s) and the other participating investors, or is implicitly trusted by other investors to find the best terms for everyone.

It said these VC firms led the most funding rounds for biotech start-ups between Jan 1 and Dec 1 this year.

It said this data also illustrates the total number of biotech industry investment rounds each lead investor participated in during that time, including those rounds the firm led and those it let others lead.

Source: The Edge Markets

Investment in biotech and healthcare boomed during pandemic — data


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Global renewable energy installations broke industry trends in 2021 as residential solar outpaced commercial and industrial capacity additions for the first time and new onshore wind ones declined.

According to Norway-based independent energy research and business intelligence company Rystad Energy, this year has been a record-breaker for renewables globally, with 227 gigawatts (GW) of new capacity installed, a 4.7% increase over 2020 levels.

The firm said that installed utility solar photovoltaic (PV), residential solar PV, offshore wind, battery and other forms of energy storage had all increased in additions in 2021.

It said utility battery storage set a record high, growing threefold, while new offshore wind installations doubled compared to 2020.

Rystad said hydrogen electrolyser capacity also made sizeable gains, albeit from a small starting position, reaching 0.8 GW of capacity additions, up from 0.04 GW in 2020.

Looking ahead, renewable capacity additions are expected to skyrocket to over 270 GW of installed capacity in 2022, driven primarily by solar and hydrogen expansion.

Rystad head of renewables research Gero Farruggio said the renewable energy industry is facing some of its most significant challenges yet over the short term, but the future had never looked brighter with new and aggressive commitments from governments and companies alike.

“The carbon-neutral pledges set forth at the COP26 climate conference in Glasgow this year will help spur major growth in the coming years,” he said.

Rystad said driving the decline in total onshore wind is the winding down of Chinese subsidies, which are projected to cause a 40 GW drop in capacity additions for the Asian powerhouse, skewing global numbers as a result.

The firm said global onshore wind additions are expected to fall to around 85 GW in 2021, a 20 GW drop year-on-year, and a further 15 GW in 2022.

However, it said this trend will likely be short-lived from 2023 onwards as demand for renewable generation soars to achieve the capacities required for the 1.5°C target.

Source: The Edge Markets

2021 trend-breaking year for renewables, says Rystad


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