According to the report, China was the largest market for semiconductors in 2021 -- with sales of 192.5 billion -- and the Americas, Europe and elsewhere in Asia also reported strong growth. File Photo by tartaruga1988/Shutterstock
Feb. 15 (UPI) -- Amid a shortage that caused supply chain disruptions, sales of semiconductor chips worldwide last year reached a record level -- more than $550 billion, according to an industry report.
The assessment by the Semiconductor Industry Association said total sales in 2021 reached about $556 billion, an increase of 26% over 2020. The group noted that fourth-quarter sales also showed tremendous growth.
SIA President John Neuffer said chip sales last year reflect a significant rebound after the supply shortages, which were partly caused by growing demand and COVID-19 restrictions around the world.
"Demand for semiconductor production is projected to rise significantly in the years ahead, as chips become even more heavily embedded in the essential technologies of now and the future," Neuffer said in a statement, while also calling for legislative help in Washington, D.C.
"To ensure more semiconductor production and innovation is located in America over the long term, the U.S. government must swiftly fund CHIPS Act investments in semiconductor research, design and manufacturing as part of bipartisan competitiveness legislation."
Neuffer said the proposal would strengthen the economy, national security, critical infrastructure, supply chains and tech leadership.
According to the report, China was the largest market for semiconductors in 2021 -- with sales of 192.5 billion -- and the Americas, Europe and elsewhere in Asia also reported strong growth.
China, which is somewhat reliant on foreign technology for semiconductors, has been working for years to increase domestic production, partly due to trade restrictions with the United States.