DataCenterNews Asia Pacific logo
Specialist data center news for Asia Pacific
Story image

Semiconductor market continues to experience uncertainty, IDC finds

With COVID-19 continuing to impact the global economy in its second year, the semiconductor market continues to experience uneven shortages and tight supply, according to analysts IDC.

The general theme for semiconductors in 2021 was shortages in mature process technology nodes. IDC expects tight semiconductor supply to continue through the first half of 2022 as the industry builds up inventory to normal levels.

New COVID-19 surges have slowed manufacturing, but the real concern will be labour shortages. The automotive market continues to be impacted as chips move upstream, limiting automobile manufacturing and driving OEMs to utilise their semiconductor supply for higher value vehicles, which raised the average selling price of vehicles for 2021.

IDC research manager enabling technologies and semiconductors Nina Turner says, "Automotive semiconductors will continue to be a limiting constraint on the automotive market through the first half of 2022, but barring any unforeseen shutdowns or semiconductor manufacturing issues, supply should gradually improve through the second half of the year.

"Adding in the time to manufacture the vehicle, this means the automotive market will begin to improve towards the end of 2022 and into 2023 if there are no other supply chain shocks."

One of the key supply constraints for the semiconductor market was in mature process nodes. While the automotive semiconductor market largely depends on these older processes, many other semiconductors are made on these mature manufacturing process technologies at 40nm and above, such as LCD drivers, power management ICs, power, Auto ICs, and microcontrollers.

According to the IDC presentation, Semiconductor Manufacturing and Foundry Market Assessment, and the forthcoming report, Semiconductor Manufacturing and Foundry Services Market and Technology Assessment, IDC estimates that 67% of semiconductors were manufactured at mature process nodes in 2021.

Utilising largely depreciated assets, these semiconductors are sold at lower average selling prices (ASPs) compared to leading edge process nodes, defined as 16nm or below.

IDC found that while leading edge manufacturing only makes up 15% of the semiconductor wafer volume, revenue from these semiconductors represents 44% of the total.

This disparity helps explain the focus of capital spending on the leading edge for the foundry market and the limited investment in mature process technology manufacturing.

Another key finding outlined in the new report is the continued growth of fabless semiconductor revenues and the continued growth of foundry capacity in Asia/Pacific.

IDC research manager enabling technologies and semiconductor Rudy Torrijos says, "IDC forecasts fabless semiconductor revenues will grow from 41% of the market in 2020 to 49% in 2025, highlighting the sustainable growth of the foundry market. Foundry capacity will continue to grow in Asia/Pacific."

The overall foundry market is forecast to grow at a five-year compound annual growth rate (CAGR) of 12% from 2020 to 2025.

While new fabs and investment announcements are a welcome sign for semiconductor manufacturing capacity over the next five years, this new capacity will not come online in 2022, the analysts state.

Companies are slowly adding what capacity they can, but capacity improvement will be incremental this year and accelerate in 2023 and beyond.

IDC group vice president enabling technologies and semiconductors Mario Morales says, "The shortages that began early last year have given way to sustainable ASP increases for most semiconductor suppliers this year, except in memory.

"Demand remains robust across most system markets but inventory levels by the middle of the year and slower economic activity in the second half could be what ultimately eases the constraints.

"OSAT and material shortages are the new challenge for the semiconductor supply chain, which will require investment over the next couple of years, especially as the ongoing trend toward systems in package accelerates."

The IDC Worldwide Semiconductor Technology Supply Chain Intelligence (STSI) service serves as the basis for IDC's semiconductor supply-side research, including market forecasts and custom market models.

Related stories
Top stories
Story image
Data Protection
iseek acquires south Australian data centre, YourDC
The acquisition broadens iseek’s co-location, cloud, and connectivity offering to seven data centres across Brisbane, Northern Queensland, Sydney, and Adelaide.
Story image
Microsoft
Putting the data horse ahead of the technology cart
There’s one question I often ask myself: Are we over-indexing on thinking about technology rather than data?
Story image
Artificial Intelligence
Versa announces partnership with Nabiq to deliver 5G services
Versa’s VOS enables a unique approach to 5G edge solutions by combining virtual machines with SASE multi-tenancy to enable 5G UPF data plane
Story image
Data analytics
COVID-19 relief innovation takes 2022 SAS Hackathon crown
In COVID-19’s wake, more than 287,000 MSMEs joined JakPreneur, a collaborative government platform that links entrepreneurs and stakeholders
Story image
Data Centre Cooling
The world is heating up, but data centres should keep their cool
With the world heating up, the challenge of keeping data centres cool becomes more complex, expensive and power intensive.
Story image
Sustainable IT
Equinix partners NUS to use hydrogen tech in data centres
The partners will develop hydrogen fuel technologies for green data centres in tropical climates, and for use in Equinix’s global network.
Story image
IT Automation
Juniper Networks announces expansion of Apstra Software with Apstra Freeform
The newly announced Apstra Freeform technology will give customers the ability to manage and automate operations for data centers regardless of the architecture.
Story image
Software-as-a-Service
Honeywell launches Data Center Suite for business outcomes
Honeywell has launched its Data Center Suite, a portfolio of outcome-based software offerings to help data centre managers and owners.
Story image
Gartner
SnapLogic named Visionary in two Magic Quadrant categories
SnapLogic has announced that it is the only iPaaS (Integrated Platform as a Service) vendor to be named a Visionary in two Magic Quadrant categories.
Story image
Google Cloud Platform
Google Cloud to open first cloud region in NZ - among others
Google Cloud has announced plans to bring three new cloud regions, one each in New Zealand, Malaysia and Thailand.
Story image
Software Defined Wide Area Network
Axiata, Versa Networks partner for enterprise SASE in Asia
Axiata has partnered with Versa Networks to deliver Secure Access Service Edge (SASE) technology to rapidly digitalising Asian enterprises.
Story image
Startup
Zetaris is changing the way we think about data virtualisation
Zetaris was launched on the Microsoft Marketplace and Ingram Micro Cloud Marketplace in Australia in 2020 and has since expanded into nine global markets.
Story image
Sustainable IT
New report calls for tighter guidelines on data centre sustainability
A new Cushman & Wakefield report is calling for water consumption and carbon emissions to be measured in addition to power usage.
Story image
Multi-cloud
VMware advances multi-cloud management with VMware Aria
Managing apps and infrastructure in a multi-cloud, especially public cloud, and multi-technology environment is complex.
Story image
Digital Transformation
NTT launches its Cyberjaya 6 data center in Malaysia
NTT expands its hyperscaler footprint in Malaysia with its sixth data center facility, supporting the growing digital economy.
Story image
Firewall
Fortinet unveils compact firewall for hyperscale data centres, 5G networks
"Fortinet’s dedication to pushing the boundaries of what is possible in security performance has yielded the most powerful compact firewall yet."
Story image
Data analytics
Srisawan Hospital to enhance patient experience with InterSystems TrakCare
The new Srisawan Hospital in Bangkok has chosen InterSystems TrakCare to help create enhanced patient experiences and promote further digital engagement.
Story image
Storage
Seagate announces next gen advanced storage arrays
The new Exos X systems feature up to twice the performance of the previous generation and enhanced enterprise-class durability, the company states.
Story image
IT infrastructure
Bentley Systems announces finalists for the 2022 Going Digital Awards in Infrastructure
The company says that this annual awards program honours the work of Bentley software users who are advancing infrastructure design, construction, and operations throughout the world.
Story image
Storage
DCI Data Centers breaks ground on AKL02 center
DCI Data Centers has commenced construction on Auckland's largest data center.
Story image
Melbourne
Equinix invests $23m to expand ME2 data centre in Melbourne
Equinix has completed the second phase expansion of its ME2 International Business Exchange data centre, located in Port Melbourne.
Story image
Hyperscale
Growth in hyperscale data centres to increase shortage of IT workers
New Zealand's tech worker capacity is set to come under increasing pressure as the number of hyperscale data centres grows.
Story image
Digital Transformation
Nanyang Technological University Singapore builds digital brand presence
Leveraging the customisation features of Sitefinity DX, non-technical users could upload content and create design pages and boost work productivity. 
Story image
Digital Transformation
NEXTDC opens $1b+ next gen sovereign data centre in Sydney
Australian data centre as a service provider has officially opened S3, its largest Sydney development to date. 
Story image
Data Centre Maintenance / Management
Schneider Electric backs new Leading Edge data centre in Australia
As a result of the new project, regional Australian businesses and communities will likely have greater access to distributed cloud networks.
Story image
Network Infrastructure
Vertiv launches solutions to better manage edge computing
Vertiv has introduced new power and cooling solutions for the edge of the network, including the addition of lithium-ion models to a leading on-line UPS family.
Story image
Data center
Australia’s data centre pioneer still leading after 22 years
We look at the fascinating success of Macquarie data centre's over its 22 year life span and how they continue to innovate in a highly contested sector.
Story image
Machine learning
Oracle announces MySQL HeatWave for Amazon Web Services
MySQL HeatWave is a service that combines OLTP, analytics, machine learning, and machine learning-based automation. 
Story image
Superloop
Stellar financial result after major strategic moves by Superloop
We get a glimpse under the hood at the financial results from 2022 for the connectivity giant Superloop.
Story image
5G
Worldwide 5G mobile data traffic exploding - report
"With 5G, there is a wider range of deployment scenarios, forcing vendors to provide comprehensive solutions to support every need."
Story image
Data Protection
iseek secures Queensland Government data centre contract
iseek secures the Queensland Government's core network data centre as-a-service contract after a competitive procurement process undertaken by the CITEC.
AWS Marketplace
Whitepaper: A practical guide for mitigating risk in today’s modern applications
Link image
Story image
Data
Talend announces support for Amazon Redshift Serverless
Talend has announced its support for Amazon Redshift Serverless, with the company saying the integration reinforces its commitment and leadership in supporting businesses.
Story image
Microsoft
VMware extends collaboration with Microsoft for enterprise workloads in Azure
Mutual customers will have the choice to purchase Azure VMware Solution through the VMware Cloud Universal program.
Story image
Cloud
SoftIron announces its newest flagship offering, HyperCloud
SoftIron has announced HyperCloud, the world's first full turnkey, completely integrated and supported Intelligent Cloud Fabric and the company's newest flagship offering.
Story image
Update
InterSystems releases updates to its IRIS data platform
Provider of next-generation solutions InterSystems has announced a series of new releases to its award-winning InterSystems IRIS data platform.
Story image
Edge Computing
NTT launches Edge-as-a-Service to accelerate automation
"Minimum latency, maximum processing power, and global coverage are exactly what enterprises need to accelerate their digital transformation journeys.”
Story image
Software-as-a-Service
Cloudera launches all-in-one data lakehouse cloud service
CDP One makes it faster, easier and less risky for businesses to move to the cloud and migrate existing workloads to a modern data architecture.
Story image
Sustainable IT
Empyrion DC announces 40MW green data center in South Korea
Empyrion DC has announced it is developing a 40MW green data center in Gangnam, Seoul, South Korea (GDC).
Aws Marketplace
Learn how to implement a backup and recovery plan for a new generation of Kubernetes-based modern applications
Link image
Story image
Optical Networking
NEC predicts AON as a next-generation infrastructure
NEC's open optical transmission devices support multi-vendor configurations, allowing customers to procure and combine equipment from multiple vendors.