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IC Insights raises 2021 IC market forecast to 19% growth

IC Insights has raised its IC market growth forecast for 2021 to 19%, up 7pp from its previous estimate of 12% growth.

The 19% market growth is forecast to be driven by a 17% surge in IC unit volume shipments and a 1% increase in IC ASP this year, IC Insights indicated.

In 2020, the global pandemic accelerated the digital transformation of the worldwide economy, which led to an increase in sales of new electronic systems and a marked uptick in the IC market in the second half of the year, IC Insights said. "This demand has continued in full force in 1Q21," it continued.

The global IC market registered an about 13% on-year increase in 2020, which outperformed IC Insights' previously estimate of 10% growth.

IC Insights expects the IC market to grow 2% sequentially to US$113.1 billion in the first quarter of 2021. "If this forecast comes to fruition, it would be the first 1Q/4Q sequential IC market increase since a 1% growth rate was registered 10 years ago in 1Q11," said the research firm.

IC Insights also provided its growth estimates for the following three quarters: 3% sequential growth in the second quarter, followed by an 8% increase in the third quarter and flat growth in the fourth.