According to data, sales of semiconductors around the world has risen by 6.5% overall in 2020, with economic recovery during the last three months of the year helping to offset a sharp dropoff in March and April, when coronavirus-induced pandemic stay at home orders were issued by countries across the globe.
The global sales of semiconductors touched $439 billion in 2020, according to data from the Semiconductor Industry Association (SIA), a trade group that represents most U.S. chipmakers along with many international firms. The share of U.S. chipmakers to this pool was around 47% of the total, amounting to $208 billion.
Chip sales into the United States were $94.15 billion, up 19.8% from the previous year.
According to Falan Yinug, SIA’s director of industry statistics and economic policy, much of the rise in U.S. purchasing was driven by high-end memory chips used in applications such as data centers.
U.S. tech companies, including Microsoft Corp, Amazon.com Inc, and Alphabet Inc’s Google saw significant rises in the use of cloud computing over the course of 2020 as they adapted to employees working from home.
Although U.S.-based companies represented nearly half of semiconductor sales, they represented only about 12% of chip manufacturing capacity in 2020, down from 37% in 1990, since most U.S. companies now source their chips from factories in Asia.
“Legislation passed last year to provide incentives to chip factories in the United States could help change that figure this year”, said John Neuffer, president and chief executive of the industry group.
The law could provide funding to U.S. companies such as Intel Corp or GlobalFoundries, as well as foreign firms such as Samsung Electronics Co Ltd or Taiwan Semiconductor Manufacturing Co Ltd.
“Over the next 10 years, semiconductor manufacturing is going to grow 56%,” said Neuffer. “We want to make sure we’re getting a bigger piece of the manufacturing pie.”