IT Brief Australia logo
Technology news for Australia's largest enterprises
Story image

Semiconductor market experiences significant growth, breaks $150bn mark

By Catherine Knowles
Mon 13 Dec 2021

Semiconductor revenue rose 7.6% in Q3 2021 from Q2 2021, and climbed above $150 billion in revenue during a single quarter.

This is a first since research group Omdia began tracking the market in 2002. Omdia experts say the development has been driven by the chip shortage, seasonal demand and strong memory revenue.

The solid quarter experienced by the memory market also drove a shakeup amongst the top 10 companies in the sector by revenue, as Samsung Electronics overtook Intel to claim the number one spot in the rankings for the quarter, according to Omdia.

Beginning in and including Q4 2020, each quarter since has set a new revenue record for the semiconductor industry, the analysts state.

Data in the Q3 release of Omdia's Semiconductor Competitive Landscape Tool (CLT) shows: 20Q4, $130.7bn; 21Q1, $131.9bn; 21Q2, $142.4bn and 21Q3, $153.2bn.

Omdia states the global pandemic caused an abrupt shift towards a more technology-focused global economy.

Increased demand for electronics and the resulting shortages for some semiconductor parts raised average selling prices (ASPs) and revenue for companies throughout the semiconductor industry.

In addition, Q3 traditionally sees increased seasonal demand as the semiconductor industry gears up for holiday demand.

The long-term quarterly growth for Q3 is 7.9%, with the next best long-term quarterly growth average in Q2 at 3.7%.

Despite the record revenue that the semiconductor market is currently experiencing, the growth rate of the recently completed quarter is average at 7.6% compared against the long-run average of 7.9%, the analysts state.

The primary driver of the 7.6% growth rate for semiconductor revenue in Q3 2021 was the memory sector.

Memory (DRAM, NAND and NOR) makes up 29% of all semiconductor revenue. This segment grew 12% quarter-over-quarter in Q3 2021.

Only display drivers (13% QoQ) and image sensors (17% QoQ) experienced stronger growth, but the memory market is five times larger than these two markets combined.

The size of the memory market means it influences the overall semiconductor market. For example, if memory revenue is removed, the remaining semiconductor market grew, but at a rate below the historical average in Q3 from Q2.

Within memory, the NAND market grew to its highest ever quarterly revenue, jumping from $16.4bn to $18.7bn.

Omdia chief analyst for semiconductor research Craig Stice says, "Preliminary data shows the NAND market reached nearly $18.7 billion in 3Q21, an impressive QoQ increase of 13.8%.

"The NAND market was fueled by strong shipment growth to meet demand coming out of the enterprise and data center markets, as well as stable demand out of the smartphone market.

"Additionally, average selling prices in 3Q21 saw a near 5% QoQ increase as supply and demand remained slightly out of balance."

Notably, after 11 straight quarters as the number one ranked semiconductor firm, Intel slipped to number two behind Samsung Electronics as the memory segment, where Samsung is the number one DRAM and NAND supplier, was the largest growth area for semiconductors in Q3 2021.

Memory semiconductor revenue rose 17% in 21Q2 from 21Q1 and another 12% in 21Q3 from 21Q2, lifting Samsung above Intel.

Strong demand for DRAM and NAND to support applications and infrastructure for work-from-home and educate-from-home has benefitted the memory sector.

Intel, the largest MPU maker, was limited as overall MPU revenue in Q3 2021 was nearly flat, up just 0.5%, according to Omdia.

Memory-focused semiconductor firms (Samsung Electronics, SK Hynix, and Micron Technology) made up three of the top four semiconductor firms in Q3 2021 and continue to dominate the quarterly revenue rankings.

Related stories
Top stories
Story image
Tech job moves
Tech job moves - Adatree, Brother, Databricks, Nutanix & Rubrik
We round up all job appointments from May 20-26, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Customer experience
The importance of service level management to customer experience
Staffing shortages have impacted site reliability engineers in particular since they are under extreme pressure to ensure that digital assets perform at optimum levels 24/7.
Story image
DevOps
Deloitte expands cloud observability practice with Dynatrace
Deloitte is expanding its cloud observability practice, including DevOps principles, AI/ML, cloud complexity management and software engineering.
Story image
Contact Centre
Leveraging technology in contact centres to reduce attrition rates
Many organisations worldwide have accelerated DX to better respond to changing market drivers and business environments after the disruption of the pandemic.
Story image
Identity and Access Management
The post-pandemic workforce requires secure IAM capabilities
HID Global discusses what identity and access management means for organisations in today's convoluted digital world.
Story image
Data Protection
Information management capabilities to meet privacy requirements
Organisations with customers or operations across more than one country face a spate of new and proposed privacy and data protection laws.
Story image
Red Sift
Entrust expands strategic partnership with Red Sift
Entrust has expanded its strategic partnership with Red Sift to make it easier for businesses to adopt Brand Indicators for Message Identification (BIMI) standards for email identification and security.
Story image
Managed service provider
Barracuda MSP Day 2022 highlights MSP opportunities
Barracuda Networks has released a report showing global services-related MSP revenue is set to increase by more than a third in 2022 compared to 2021.
Story image
Symbio
Symbio consolidates TNZI business to support APAC expansion
Symbio has recently announced the consolidation of its international business (TNZI) under the Symbio brand to support its Asia Pacific expansion strategy.
Story image
NVIDIA
NVIDIA announces a spate of new innovations at Computex 2022
NVIDIA has announced its latest innovations in data center, robotics, content creation, and gaming in a virtual keynote address on the opening day of Computex 2022 in Taipei.
Story image
Digital Transformation
Digital transformation increasing business complexities
A new survey suggests businesses must re-examine their digital transformation approach to better help employees adapt to change.
Story image
Sustainability
Aligned Data Centers increases sustainability-linked loan
Aligned Data Centers has increased its sustainability-linked loan from $375 million to $1.75 billion to speed up the next phase of its strategic growth.
Story image
Informatica
Informatica, Oracle enter strategic global cloud partnership
Oracle named Informatica as a preferred partner for enterprise cloud data integration and data governance for data warehouse and lakehouse solutions on OCI. 
Story image
Cyber attacks
Devastating cyber attacks expected to hit energy sector
Energy executives anticipate life, property, and environment-compromising cyber attacks on the sector within the next two years.
Story image
Kubernetes
Sysdig unveils new Kubernetes troubleshooting and cloud innovations
Sysdig has introduced two new innovations that look to help bolster cloud services and simplify Kubernetes troubleshooting.
Story image
SaaS
The paradox of change, and how to get around it
The business decision to technologically transform should not come from an IT department but from the business itself.
Story image
Boost Mobile
Boost Mobile now makes up over 7% of Aussie prepaid market
Boost Mobile has doubled its market share over the past four years and now has more than 7% of Australia's prepaid market, equivalent to over 700,000 people.
Story image
SpaceX
Australian space tech startup secures SpaceX support
Space Machines Company has secured the support of SpaceX as a launch partner in carrying SMC's Optimus Orbital Transfer Vehicle to space next year.
Story image
Cybersecurity
What every CISO must answer to enable a best-in-class security operations program
It has been widely reported recently that South Australian government employees have been the victims of a cyberattack.
Story image
Data Center
Preventing downtime costs and damage with Distributed Infrastructure Management
Distributed Infrastructure Management (DIM) can often be a lifeline for many enterprises that work with highly critical ICT infrastructure and power sources.
Story image
Transport
Third-party automotive apps bear significant privacy risks
Mobile applications for connected cars provide various features to make life easier for motorists, but they can also be a source of risk.
Story image
Phishing
MailGuard warns of new scam targeting Telstra customers
Telstra customers in Australia are being warned of a new scam involving "Unsuccessful Payment" messages.
Story image
Sustainability
SoftIron named global leader for efficient DC infrastructure solutions
SoftIron has been named a global leader for supplying energy-efficient data infrastructure solutions for core-to-edge data centers after an assessment by Earth Capital Ltd.
Story image
APAC
Top data and tech challenges for APAC banks - report
InterSystems’ new report finds that 87% of A/NZ banks experience frustrations and concerns in using their data to drive decision-making.
Story image
Rackspace
Skills shortages hold orgs back from capitalising on cloud 2.0
Organisations are becoming more comfortable with sophisticated 'cloud 2.0' technologies, even as they confront difficulties in hiring and retaining IT talent.
Story image
GapMaps
GapMaps Live to improve brand decisions on physical locations
GapMaps has released its latest service GapMaps Live, giving more insights and features to help brands make better decisions about physical locations.
Story image
MEC
MEC spending for private cellular networks to reach $5.8b
A new ABI Research report finds the revenue for Multi Access Edge Compute (MEC) deployments for private cellular networks will reach USD$5.8 billion by 2030.
Story image
Infosys
Consumer relationships with digital services continues to change
Two years of pandemic-induced reliance on technology for work has altered our relationship with digital apps and services, new research has found.
Story image
Digital wallets
Australians lead the way in digital payment use - report
Australian consumers are at the forefront of mobile wallet use and adoption of digital banking tools, abandoning cash and physical payment experiences.
Story image
Microsoft
Microsoft previews Power Platform website design offering
Microsoft has announced the preview of Power Pages, the fifth product in its Power Platform family, designed for low-code makers and professional developers.
Story image
Malware
Fortinet introduces self-learning AI in latest offering
Fortinet is introducing self-learning AI capabilities in its new network detection and response offering, FortiNDR.
Story image
Artificial Intelligence
Gartner reveals top three tech trends for banks this year
Gartner says generative artificial intelligence, autonomic systems and privacy-enhancing computation are gaining traction in banking and investment services.
Story image
Digital Signage
MAXHUB's Digital Signage range to bolster boardroom productivity
The new MAXHUB Digital Signage technology is purpose-built to make every kind of team meeting more effective.
Story image
Hybrid Cloud
Barracuda expands cloud-native SASE platform
"The expansion of Barracuda's cloud-native SASE platform for hybrid deployment models and IIoT environments solves a number of challenges."
Story image
Silver Peak
The path to an adaptive, modern network
Managing and securing the network looks different than it did just two years ago—especially given that most of these networks are made up of multi-generations of infrastructure stitched together over time.
Story image
Cybersecurity
Accenture - a collective security approach a driving factor for cyber resilience
With the approaching Davos World Economic Forum upon us, it is even more imperative to discuss the impact of cybersecurity on business operations leading into the future.
Exabeam
Find out how a behavioural analytics-driven approach can transform security operations with the new Exabeam commissioned Forrester study.
Link image
Story image
Check Point
Check Point and CCTV expert join forces to boost protection
The partnership will involve Check Point Quantum IoT Protect Nano Agent being embedded in Provision-ISR’s CCTV cameras for on-device runtime protection.
Story image
DaaS
NetApp launches Spot PC, a new Desktop-as-a-Service solution
This is a new managed cloud DaaS solution with security, automation, observability and optimisation capabilities, designed for the needs of today.
Story image
Training
Infosec unveils role-guided cybersecurity training roadmaps
Infosec Skills Roles maps hands-on training and certifications to the 12 most in-demand cybersecurity roles to maximise training efficiency.
Story image
Microsoft
Microsoft, Cloudian partnership offers data center flexibility
Cloudian’s HyperStore object storage platform is now integrated and validated to work with Microsoft SQ Server 2022, offering more flexible and scalable data centers.
Story image
VPN
The most common online scams in Australia
No one is safe from online scammers, and many of these scammers have capitalised on the pandemic, using this confusing time to attack more people than ever.
Story image
Digital Transformation
Harnessing digital innovations to maximise loyalty programmes and improve CX
When it comes to the retail sector, merchants have never had access to so many different client touchpoints and data to understand their customers better.
Story image
SaaS
MedCart achieves close to AUD$10 million in sales with help from Marketplacer tech
Australian health and medical start-up MedCart has achieved annual sales of close to AUD$10 million in less than 12 months, utilising Marketplacer marketplace technology to help achieve successful results.