Increased production lines of semiconductors - the much-needed chips used in cars and computers and many other electronic devices - have been predicted to reach record highs in 2021, according to IC Insights.

“According to forecasts, next year, 10 production lines for 300 mm silicon wafers will be added worldwide. Based on this forecast, by 2024, the average annual growth rate of semiconductor production capacity will be 5.9%. Compared with the average annual increase rate (5.1%) of semiconductor production capacity in the past 5 years (2014 ~ 2019), the growth rate slightly increased,” MarketWatch reported.

World Semiconductor Trade Statistics predicts that chip sales will accelerate to 8.4% growth next year, reaching $469 billion in revenue. For 2020, it estimated that chip sales would rise 5.1% to $433 billion. That's after semiconductor industry sales fell 12% to $412 billion in 2019.

“UBS forecasts that semiconductor industry revenue will rise 12% in 2021 to about $492 billion. UBS estimates that semiconductor revenue grew about 7% to $439 billion in 2020, bucking a challenging economic climate from the coronavirus pandemic,” Investor’s Business Daily reported

Other analysts have suggested the increase in production and revenue could be over 14%. “Consolidation in the semiconductor industry is likely to be a major theme in 2021, Deutsche Bank said. However, after a flurry of mergers and acquisitions announced in the second half of 2020, the list of potential targets has become shorter,” the firm said.

Interestingly, Q3 2020 semiconductor sales were up 11% y-o-y as demands from various electronic manufacturing needs like laptops for use in work from home situations.