The report below gives a good overview of the Fall 2021 M&A activity in the Semiconductors & Advanced Materials Industry Sector. During the pandemic, the semiconductor industry had remarkable success and has become highly prevalent in finding solutions for a variety of economic and public health issues, but it still faces enormous hurdles. One of the most significant issues is the worldwide scarcity of semiconductors. There was an unexpected high demand for semiconductors, which were required during the pandemic to enable remote healthcare, work-at-home, and virtual learning. The scarcity is still affecting a variety of downstream industries, including automobiles, consumer electronics, household appliances, industrial robots, and a variety of other essential items. The semiconductor industry is expected to expand 17.3 % in 2021, compared to 10.8% in 2020, according to a report by International Data Corporation ("IDC"). By the middle of 2022, the industry is anticipated to be normalized and balanced, with the possibility of overcapacity in 2023. In July 2021, global semiconductor sales remained strong, with high demand in all key regional markets and semiconductor product categories. According to data published by The Semiconductor Industry Association ("SIA"), worldwide semiconductor industry sales were $45.4 billion in July 2021, up 29.0 % from $35.2 billion in July 2020. Europe had the largest year-over-year sales growth of 38% in 2021, followed by Asia Pacific (30.9 %), China (28.9%), the Americas (26.8%), and Japan (20.9%).
Posted by Gunther Hofmann.