Processors (Global Market)

2023

4% increase in audio processor sales to $7 billion

In 2023, costs in the global audio processor market reached $7.13 billion. The indicator of the previous year, when expenses in this area were estimated at $6.83 billion, was exceeded by about 4%. Such data are reflected in the Market Research Future study, the results of which were published in mid-December 2024.

One of the key drivers of the industry under consideration, the authors of the report cite the growing demand for high-quality sound in various areas, primarily in the consumer electronics segment. We are talking about smartphones, headphones, smart speakers, TVs, home cinemas, etc. The integration of advanced audio chips into such a technique provides the ability to improve sound quality, create immersive effects, reduce delays and improve the user experience as a whole. In addition, the development of the gaming industry is helping to increase sales of sound processors. Such chips play a vital role in creating high-quality infotainment systems for cars.

Another driver is technological advances. The integration of artificial intelligence and machine learning, as well as the application of digital signal processing, allow audio processors to provide an unprecedented level of purity and clarity of sound. At the same time, the cost of production is reduced, which makes high-quality sound solutions available to a wider audience. Increasing consumer interest in augmented (AR) and virtual (VR) reality is breaking new ground for the introduction of sound processors.

Analysts point to the growing popularity of wireless audio devices such as fully wireless submersible type (TWS) headphones. The observed trend encourages manufacturers to invest in sound processors that not only support different connectivity options, but also provide optimal performance as well as low power consumption.

Among the key areas of application of sound processors are consumer electronics, automotive technology, telecommunications, healthcare and the industrial sector. In 2023, the first of these areas provided revenue in the amount of $2.5 billion. The automotive segment accounted for $1.3 billion, the telecommunications segment - $1.7 billion. Another $1 billion was brought by solutions for health care, $0.63 billion - for the industrial sector. The key players in the market are:

• Qualcomm;
• Texas Instruments;
• Infineon Technologies;
• Kohshin Electric;
• Microchip Technology;
• Analog Devices;
• Asahi Kasei Microdevices;
• Cirrus Logic;
• STMicroelectronics;
• Maxim Integrated;
• On Semiconductor;
• ESS Technology;
• Renesas Electronics;
• Broadcom;
• NXP Semiconductors.

From a geographical point of view, North America leads with an estimate of ​​$2,5 billion in 2023: the dominance of the region is explained by the high level of development of the IT sector and the presence of many large manufacturers. In second place is the Asia-Pacific region with $2 billion, and Europe closes the top three with $1.8 billion. South America secured a contribution of $0.5 billion. Another approximately $0.3 billion was brought by the Middle East and Africa.

At the end of 2024, revenue in the segment of sound processors is estimated at $7.44 billion. Market Research Future analysts believe that in the future, the CAGR will be 4.4%. As a result, by 2032, costs on a global scale could increase to $10.5 billion.^[1]

Sales of processors for tablets in the world for the year reached $17.86 billion

In 2023, the global market for processors for tablet computers is estimated at $17.86 billion. This is 4% more compared to 2022, when the cost of such chips was $17.16 billion. Industry trends are addressed in the Market Research Future survey published in mid-December 2024.

One of the market drivers is the increasing demand for high-performance tablets. Such devices are increasingly used not only for viewing Internet sites and multimedia materials, but also for games, as well as professional tasks. As a result, customers often choose gadgets equipped with more powerful, and therefore more expensive, processors. This shift is further enhanced by the integration of artificial intelligence and machine learning capabilities: such tools require significant computational resources.

The increase in demand for tablets is facilitated by the development of models of remote and hybrid work, as well as distance learning. Gadgets have become an important tool for both students and employees of many organizations. The ability to carry a lightweight device that provides significant processing power and compatibility with demanded applications makes tablets an ideal choice for many users.

Another market driver is technology advances in processor architecture. Chips become more productive and functional while reducing power consumption. The continuous evolution of hardware components helps to expand the capabilities of end devices and increase battery life when powered by a battery. An important role in increasing sales is played by the integration of modern communications, including 5G. The observed trends highlight a shift to integrated solutions that combine features such as graphics processing and machine learning capabilities into a single chip.

The authors of the study highlight five key areas, the development of which contributes to the increase in demand for tablet processors: games, education, entertainment, productivity applications and communication applications. In 2023, the first of these sectors accounted for $4.5 billion, the second - $2.8 billion. The need for entertainment provided a contribution of $5.2 billion. Productive applications and communication applications brought in $3 billion and $2.4 billion, respectively. The key players in the market in question are:

• Spreadtrum Communications;
• Nvidia;
• Texas Instruments;
• Rockchip;
• MediaTek;
• Allwinner Technology;
• Samsung;
• HiSilicon;
• Intel;
• Broadcom;
• Qualcomm;
• Cavium;
• Amlogic;
• Marvell Technology;
• Apple.

North America leads geographically with an estimate of $6.2 billion in 2023: this is due to the high level of development of the IT sector and the presence of many large manufacturers. In second place is the Asia-Pacific region with costs of $5 billion. Europe closes the top three, where sales of chips for tablets amounted to $4.5 billion. The contribution of South America is estimated at $1.5 billion, the Middle East and Africa - at $0.6 billion.

In the future, stable positive dynamics are expected to remain. At the end of 2024, sales of processors for tablets are estimated at $18.6 billion. Market Research Future analysts believe that in the future, the CAGR (average annual growth rate in complex percentages) will be 4.12%. As a result, by 2032, costs on a global scale could rise to $25.69 billion.^[2]

Smartwatch chip sales in the world rose 11% to $3.83 billion

In 2023, the global chip market for smartwatch reached $3.83 billion. This is 11% more compared to 2022, when sales of such products were estimated at $3.44 billion. A key driver for the industry is the increasing demand for wearable gadgets, according to the Market Research Future review published at the end of October 2024.

Analysts note that smartwatches are becoming more and more popular among consumers around the world. At the same time, there is a noticeable shift towards monitoring health and fitness, as well as other functions that improve the user experience. Customers are looking for devices that not only show time, but also provide information about physical activity, heart rate and overall body health. As people become increasingly aware of the importance of health and wellbeing, sales of smartwatches equipped with specialised chips to track vital signs are on the rise.

Another stimulating factor, the authors of the study call technological advances. Next-generation processors consume less power while delivering improved performance. This expands the capabilities of gadgets and increases the battery life on a single battery charge. Smartwatches are overgrown with artificial intelligence-based features that provide a personalized user experience. At the same time, cloud services facilitate real-time data synchronization, increasing the usefulness of wearable devices. The indicators collected by the clock can be transmitted, for example, to the attending physician, who will be able to identify dangerous deviations and prescribe the necessary therapy in a timely manner.

By product type, the market is segmented into three categories: special purpose integrated circuits (ASIC), "systems on a chip" (SoC) and microcontrollers. In 2023, ASIC sales generated about $1.21 billion in revenue. SoC accounted for $1.15 billion, while microcontrollers provided $1.47 billion. In terms of the ultimate use of smartwatch chips, the report's authors highlight consumer electronics, healthcare and sports. The first of these segments dominates in 2023, which is due to the increasing popularity of intelligent connected devices. The health sector is showing steady growth, driven primarily by attention to health monitoring and monitoring of vital signs of the body. In addition, gadgets are in demand among athletes and fitness fans: in this segment, smartwatches help to collect detailed information about training.

Geographically, in 2023, North America became the leader with an estimate of $1.53 billion. This is followed by the Asia-Pacific region with a result of $1.05 billion, and Europe closes the top three, where sales amounted to $0.98 billion. South America, the Middle East and Africa together provided $0.27 billion. Among the leading players in the market in question are:

• Marvell Technology Group;
• Rockchip;
• Intel;
• Texas Instruments;
• STMicroelectronics;
• Huawei;
• Spreadtrum Communications;
• MediaTek;
• Qualcomm;
• Apple;
• Broadcom;
• Cypress Semiconductor;
• Ambarella;
• NXP Semiconductors;
• Samsung.

At the end of 2024, revenue in the global smartwatch chip market is estimated at $4.26 billion. Market Research Future analysts believe that in the future, the CAGR (CAGR in complex percentages) will be 11.25%. As a result, by 2032, costs globally will reach $10 billion.^[3]

Sales of chips for data centers in the world for the year reached $11.93 billion. Leaders - Fortune Business Insights

At the end of 2023, the global data center (DPC) chip market reached $11.93 billion. In the future, steady growth is expected, which is associated with the rapid introduction of artificial intelligence, the development of cloud services and the increasing need for high-performance computing (LDC). This is stated in a study by Fortune Business Insights, the results of which were published at the end of September 2024.

The published data takes into account the sales of central processing units (CPUs), graphics chips (GPUs), specialized integrated circuits (ASICs) and user-programmable gate arrays (FPGAs). Such products, as noted, are critical to supporting large-scale applications, cloud services, AI workloads, and big data analytics . The CPU segment occupies the largest share, which is explained by the versatility and ability to perform a wide range of computing tasks. At the same time, the GPU sector is showing the highest growth rates.

Sales of chips for data centers - $11.93 billion

North America is the leader in terms of chip spending for data centers. This is due to the developed data center infrastructure, significant investments in IT technologies and high demand for data processing. In 2023, the region accounted for $4.37 billion. In second place in terms of costs in the market under consideration is, Europe while the Asia-Pacific region shows the highest growth.

Among the leading players in the industry are named, Intel,, AMD,, Nvidia,, Broadcom,,, and Qualcomm Micron Technology. Samsung Marvell Huawei Cisco Arm Fortune Business Insights analysts believe that in the future, the CAGR (compound percentage CAGR) in the data center chip market will be 7.4%. As a result, by 2032, costs on a global scale will reach $22.53 billion.^[4]

Global Server Processor Sales Up 6% to $23.01 Billion - Market Research Future

In 2023, the global server processor market reached $23.01 billion. This is almost 6% more compared to 2022, when sales of such products amounted to $21.78 billion. A key driver for the industry is the increasing demand for high-performance computing (HPC), cloud services and artificial intelligence, according to Market Research Future materials published in late August 2024.

The rapid development of AI and machine learning is driving increased demand for server chips, which are purchased in large quantities by operators of large data centers and hyperscalers. In addition, server processors play a critical role in HPC systems, allowing them to perform complex simulations, analyze huge amounts of information, and simulate. Such complexes are in demand in various scientific, engineering and research applications that require large computing power. In turn, cloud platforms offer customers numerous benefits, including scalability, cost-effectiveness, and flexibility. This leads to companies around the world continuing to actively move their workloads to the cloud, which stimulates the expansion of such infrastructures. As a result, server chip sales are increasing.

The server processor market is segmented by architecture into x86, Arm, RISC-V, and PowerPC. In 2023, the x86 category occupied the largest share. The popularity of this architecture is primarily due to its widespread use in enterprise and cloud computing environments. It provides high performance, scalability, and compatibility with a vast ecosystem of software and hardware. In turn, the Arm architecture is gaining momentum due to low power consumption, as well as a high ratio of performance and power consumption. It is especially well suited for applications that require high energy efficiency, such as mobile and peripheral computing. The open RISC-V architecture is also gradually gaining popularity in the server market: it provides flexibility and cost-effectiveness, making it an attractive option for new applications and specialized segments. The PowerPC architecture developed by IBM is primarily used in the HPC field.

Among the leading players in the global server chip industry are named, Baikal Electronics, Zhaoxin Phytium Technology,,, Intel Broadcom Hygon Information Technology,,,,,, Nvidia, AMD Qualcomm Marvell Cavium Kunpeng Xilinx Technology and. Arm North America is the largest regional market, accounting for more than 30% of server chip sales in 2023. It is home to many of the world's largest and leading data centers cloud service providers, including, and. Accounting for Amazon Web Services (AWS) Microsoft Azure Google Cloud Europe about 25% of all sales, the region is home to a large number of small and medium-sized enterprises, as well as a growing number of hyperscale data centers. Asia Pacific is the third largest market with a share of about 20%. South America, the Middle East and together Africa control approximately 15% of the industry.

It is estimated that in 2024 global server chip sales will amount to about $24.32 billion. According to Market Research Future analysts, in the future, the CAGR (CAGR in complex percentages) will be at 5.68%. Thus, by 2032, the volume of the industry will reach $37.82 billion.^[5]

The volume of the global market for processors for data centers for the year grew by 13% to $21.13 billion - Market Research Future

In 2023, the global data center (data center) processor market reached $21.13 billion. This is about 13% more compared to 2022, when the costs in this segment were estimated at $18.64 billion. A key driver for the industry is the growing need for cloud computing, artificial intelligence and machine learning. This is stated in a study by Market Research Future, the results of which were published at the end of August 2024.

Amid the digital transformation, companies around the world continue to move their workloads to the cloud. At the same time, the volume of generated data is growing rapidly, the processing of which requires huge computing power. Against this background, data center operators and hyperscalers are expanding their capacities by purchasing additional equipment. As a result, chip sales for data centers are increasing.

The authors of the report call the development of AI-related technologies another stimulating factor. Researchers and engineers are working to improve the performance and efficiency of data center chips, as well as creating specialized solutions optimized for AI tasks. Various government initiatives are also helping to expand the industry: authorities around the world are supporting the development of data center infrastructure and cloud computing. Such services are critical to maintaining business operations. The "pay-as-you-go" capability allows companies to dynamically adjust computing power without having to manage their own data center.

Analysts divide the data center processor market into x86, Arm, and Power segments. The lion's share of revenue falls on x86 products - approximately 75% at the end of 2023. At the same time, the Arm architecture is gaining popularity in the data center sector due to lower power consumption and cost-effectiveness. In terms of chip applications, data center cloud computing, high-performance computing (HPC), artificial intelligence and big data analysis stand out. In 2023, about 40% of all costs were provided by cloud platforms. Structurally, Market Research Future categorizes products into three categories: SOC (system-on-chip), MCM (multi-chip module), and FPGA (user programmable gate array). In 2023, sales of such solutions brought in $12.3 billion, $5.1 billion and $3.6 billion, respectively.

Among the leading players in the industry are named, Intel,, AMD,, Xilinx,, Micron Technology SK Hynix Samsung Maxim Broadcom Integrated Products,,,,,, and. Renesas Electronics Analog Devices Nvidia Marvell Western Digital Qualcomm Geographically, North America dominates due to the presence of large cloud service providers and hyperscalers. In 2024, the region is expected to account for more than 35% of total revenue in the data center chip market. It follows where Europe there is significant demand from the telecommunications and financial sectors. The Asia-Pacific region is experiencing rapid growth, helped by the actively expanding infrastructure of data centers in countries such as, and. China India Japan

In 2024, global spending on data center processors is expected to be $23.95 billion. Market Research Future experts believe that in the future the CAGR (average annual growth rate in complex percentages) will be at the level of 13.35%. As a result, by 2032 the volume of the industry will reach $65.3 billion.^[6]

Global sales of processors for military and aerospace electronics rose to $6.26 billion over the year

In 2023, global sales of processors and memory chips for military and aerospace electronics reached $6.26 billion. The demand for these products is growing steadily, as stated in a study by Market Research Future, the results of which were released in June 2024.

Analysts take into account the supply of various products, including graphics processors (GPUs), programmable gate arrays FPGA (), special-purpose integrated circuits (ASICs), NAND, NOR, DDR, LPDDR memory modules, etc. Among the key players in the global industry are named,,, AMD,, Infineon Technologies,, STMicroelectronics,, Intel,,, NXP Semiconductors Texas Instruments Renesas Nanya Microchip Technology Micron Technology Honeywell Western Digital Technology, etc. Samsung

Sales of processors for military and aerospace electronics for the year rose to $6.26 billion

Processors and high-reliability memory chips are used in the military and aerospace industries, including aircraft, spacecraft, unmanned aerial vehicles, weapons systems and communications. In 2023, Market Research Future estimates that the aerospace industry accounted for about 63.18% of the total costs. Geographically, the largest market for the products in question is North America, followed by Europe and the Asia-Pacific region. Processors of different types for military and aerospace electronics in 2023 provided 80.55% of total sales, and the rest were memory chips.

Market Research Future analysts believe that in 2024 the costs in the area under consideration will rise to $7.52 billion. In the future, the CAGR (compound percentage CAGR) is expected to be 11.4%. As a result, by 2032, the global market size could reach approximately $16.61 billion.^[7]

2022

The global market for processors for data centers sank 4.4%

Global revenue in the data center processor (CPU) market () DPC in 2022 decreased by 4.4% compared to the previous year. This is stated in a study by Counterpoint Technology Market Research, the results of which were published at the end of February 2023.

Analysts report that several factors had a negative impact on the global CPU market in 2022. These are rising energy costs and macroeconomic uncertainties that have forced some data center operators to reduce investment in expanding their infrastructures. In addition, graphics accelerators (GPUs) or specialized accelerators are actively used to solve many problems, which reduces the need to increase the number of central chips.

[[Image:840px|thumb|

At the end of 2022, Intel remained the largest supplier of CPUs for data centers with a share of 70.77% versus 80.71% a year earlier. The corporation's revenue in the corresponding segment decreased by 16% on an annualized basis. AMD is in second place: the company controls 19.84% of the industry, while in 2021 the result was 11.74%. AMD was able to increase sales by 62% year-on-year.

Counterpoint analysts say Arm processors continue to gain popularity in the data center segment due to their high energy efficiency. For example, the share of Graviton Arm chips Amazon used by the cloud platform AWS reached 3.16% in 2022, while a year earlier they occupied 1.82% of the global industry in the data center segment. Another 1.52% in 2022 fell on Arm development products. Ampere Computing At the same time, for the first time, revenue from the sale of server Arm processors exceeded $1 billion. All other CPU suppliers for data centers in 2022 jointly controlled about 4.71% of the industry against 4.62% in 2021.^[8]

Share of U.S. chip supplier revenue from China business

The strongest market decline in 30 years

The global market for computer processors with x86 architecture experienced its strongest decline in 30 years by the end of 2022. This is evidenced by the results of a study released by Mercury Research in early February 2023.

At the end of 2022, on a global scale, it is estimated that approximately 374 million x86-compatible chips were shipped (Arm products are not taken into consideration). The revenue of suppliers amounted to about $65 billion. These results, respectively, are 21% and 19% less compared to the indicators for 2021. Analysts note that low demand for computers and excess inventory from retailers and suppliers led to a rapid decline in processor shipments two years after the market saw an active increase in laptop sales and a sharp increase in demand for graphics cards for desktops. Instead, sales returned to a more familiar order in 2022 amid lingering inflation and an ongoing economic slowdown.

While the situation looks very bleak, note that total revenue in the processor market in 2022 was higher than in any other year earlier, with the exception of 2020 and 2021, said Dean McCarron, president of Mercury Research.

According to the report, the decrease in shipments may largely be due to excess supplies of chips in previous periods. As a result, processor manufacturers "deliberately restrict supplies" to get rid of existing inventory.

At the end of 2022, the company AMD significantly increased its share: it amounted to 29.6% against 23.3% in 2021. Intel continues to dominate the x86 segment with a score of 70.4% versus 76.7% in 2021. AMD, analysts say, is strengthening its position for a number of reasons. The company was able to achieve some success in the server segment - one of the few sectors where there was good demand in 2022 due to the development of cloud platforms and data centers. In addition, AMD has partially increased its share due to [[What is Internet things (Internet of Things,)|IoT ]]][[Internet of Things (IoT)|Internet of Things (IoT)]]]]]]]]]]]]]]] and its semi-order products, in particular, chips for game consoles such as 5 PlayStation Xbox and Series X 'S.

By the end of 2022, AMD's share of the server market reached 17.6% versus 10.7% at the end of the previous year. At Intel, on the contrary, the indicator decreased to 82.4% from 89.3% at the end of 2021. Thus, AMD increased its share entirely due to the weakening of Intel's position. In the segment of desktop personal computers, AMD's share for the year rose from 16.2% to 18.6%, while for Intel - decreased from 83.8% to 81.4%. However, AMD faced a deterioration in the processor market for laptops: by the end of 2022, the company's share was 16.4%, although a year earlier it controlled 21.6% of the segment. Intel showed a result of 83.6% against 78.4% at the end of 2021.

AMD, experts emphasize, is now one step away from claiming a third of the x86-compatible processor market, since, according to Mercury Research, the company has benefited from inventory adjustments and price increases from rival Intel. The share increase also came as the overall processor market experienced its largest quarterly and annual decline in 30 years as the research firm tracked such data.

While Mercury did not collect statistics during the 1985-1986 PC market downturn, the decline in market revenue in 2022 was worse than Intel's performance in either of those years, likely making the current slump in processor sales the worst in industry history in both piece and monetary terms, Mercury Research said.[9]

Mass production of the first 3nm processors began

On December 29, 2022, contract manufacturer TSMC announced the start of serial production of the first 3nm microchips. The new line was launched at the company's facility in southwest Taiwan. Read more here

2021

Microprocessor market up 14%

The volume of the global microprocessor market in 2021 reached $103.7 billion, an increase of 14% compared to 2020. Such data are provided by analysts at IC Insights.

According to their estimates, the quantitative supply of chips amounted to 2.49 billion units, which is a record value for the market. The previous maximum dates back to 2018, when chip shipments were measured at 2.28 billion units.

The record results are driven by unprecedented high demand for CPUs and SoCs and high average sales prices as manufacturers try to improve the performance of their solutions and empower them with an expanded set of functions. Electronics developers, in turn, prefer the most powerful solutions.

In 2021, $48.4 billion worth of processors for computers and servers were sold globally, which is 4% higher than a year ago. This segment remains the largest in the market in terms of revenue. In physical terms, in 2021 it grew by 6% compared to 2020.

The second largest segment is single-chip systems for smartphones, sales of which in 2021 increased by 34% on an annualized basis - up to $35.7 billion. The rise in revenue is largely due to a 20% increase in average selling prices for mobile chips, which, in turn, is caused by an increase in the number of computing cores in processors and the integration of 5G modems.

Sales of microprocessors for embedded systems in 2021 amounted to $19.7 billion. Despite the acute deficit in this segment, it grew by 11%. This segment leads the way in quantitative product deliveries, as more than a billion such chips are used in industries such as automotive, consumer electronics, industry, the Internet of Things, medicine, network and telecommunications equipment.^[10]

The market for tablet processors has grown in money over the year, but has fallen in pieces. Leaders

At the end of 2021, 8% fewer tablet processors were sold worldwide than a year earlier. Such data were released on June 31, 2022 in the research company Strategy Analytics.

Analysts did not specify the volume of the market in physical terms, but announced the revenue for 2021 - $3 billion. This is 12% more than a year ago. Thus, sales of processors for tablet computers in 2021 increased in dollars, but sank in quantitative terms. At the same time, relative to 2019, when there was no COVID-19 coronavirus pandemic, piece supplies of microcircuits rose by 13%.

According to the study, about 89% of tablet processors delivered to the global market in 2021 were based on the ARM architecture. The average cost of the chip increased by 21% due to an increase in the range of more expensive models and restrictions on the supply of semiconductor wafers.

Just over 84% of tablet processor sales in 2021 came from three companies (Apple, Intel and Qualcomm). Moreover, Apple retained its leadership due to the fact that the iPad by 2021 remained the most popular tablets in the world. The American company installs its own central processors in the iPad.

Apple, MediaTek and Unisoc saw shipments grow in 2021, while Allwinner, HiSilicon, Qualcomm, Rockchip and Samsung LSI saw shipments shrink, says Shravan Kundozhayala. - MediaTek holds the lead among non-Apple processor manufacturers, boosted by orders from Amazon, Lenovo, Samsung and other brands. Qualcomm has turned its attention to premium tablets and registered a 15 percent drop in shipments at the end of 2021.[11]

Global Smartphone Processor Market Up 23%

The global market for processors for smartphones (AP) grew in 2021 by 23% compared to 2020 and reached $30.8 billion. Such data at the end of March 2022 was presented by researchers at Strategy Analytics. Shipments of processors for smartphones with artificial intelligence (AI) exceeded 900 million in 2021, the figure remained practically unchanged from 2020.

For the first time on an annualized basis, MediaTek overtook Qualcomm in the smartphone processor market and established a lead of more than 75 million units. However, Qualcomm maintained its lead in revenue share and ended 2021 with more than 43% higher revenue than MediaTek. Qualcomm, MediaTek, Apple, Samsung LSI and Unisoc ranked the top five in terms of revenue share in the smartphone processor market in 2021, according to a report by Strategy Analytics.

Qualcomm maintained its lead in smartphone processors with a 38 percent share of revenue, followed by MediaTek and Apple with a 26 percent share. Apple (26%), MediaTek (26.3%), Qualcomm and Unisoc (2.5%) increased market share, while HiSilicon and Samsung LSI lost share. 5G processor shipments are up 84% from a year ago, 46% of the total number of smartphone processors shipped in 2021.

However, increased shipments of mid-range processors without AI limited growth. Among the best-selling Android AI solutions: Snapdragon 888/888 +, 765/G, 750G and 662, as well as Dimensity 700. TSMC has produced three of the four smartphone processors shipped in 2021. In addition, semiconductor foundries, including TSMC and Samsung Foundry, held up well despite supply constraints and helped the industry achieve growth.

In 2021, processors for smartphones manufactured using the 7 nm process technology and below accounted for 43% of the total supply of processors for smartphones. Google entered the smartphone processor market in 2021 with its Pixel Tensor chip, taking in roughly 0.1% of its product units and revenue share. One of the authors of the Strategy Analytics study, Compared Kundoijala, noted:

For the first time on an annualized basis, MediaTek overtook Qualcomm in terms of units sold and established leadership, selling more than 75 million units of processors for smartphones in 2021.

MediaTek benefited from Qualcomm's de-focus on mid-to-low-end 4G LTE processors and increased its sales share. Qualcomm ended 2021 with more than 43% higher revenue than MediaTek, thanks to an increase in processors for premium smartphones. Both companies performed well in the 5G-enabled processor segment and hit a 13-year high ASP (average unit price) on their processors.

Kundoijala also added that Unisoc in 2021 managed to return to its previous performance thanks to the updated portfolio of processors with LTE support and victories in the design of the first level. Strategy Analytics believes Unisoc has the potential to take away the AP's LTE stake from MediaTek in 2022 as the latter changes its focus on 5G.

Samsung LSI, on the other hand, has faced a sharp decline in shipments of its products as its main customer, Samsung Mobile, has partnered with Qualcomm, MediaTek and Unisoc. As a result, for the first time in six years, Samsung shipped less than 100 million processors in 2021. However, Samsung could regain market share with its new mid-range 5G solution, the Exynos 1280, in 2022.^[12]

The global x86 processor market grew by 11.6%, to $74 billion

The global market for microprocessors based on the x86 architecture (the most popular in the world) reached $74 billion in 2021, an increase of 11.6% compared to 2020, when sales of such chips were measured at $66.6 billion. This is evidenced by data from the analytical company Mercury Research, released in February 2022.

If we take into account all types of processors for computers, including microcircuits based on architecture ARM and their own chips, Apple the processor market in 2021 also showed healthy growth, Dean McCarron, president of Mercury Research, told VentureBeat. According to him, in 2021, a total of 500 million chips were sold, and excluding ARM solutions - 471 million units.

We are talking about processors used in personal computers, servers, laptops, game consoles and Internet of Things equipment.

As Bloomberg notes on February 9, 2022, Intel still accounts for most of the processor market, but the company does not have the previous technological superiority. This prompted customers to look for alternatives - whether in AMD chips or in their own projects. Intel CEO Pat Gelsinger previously said the company will be able to stem AMD's skyrocketing with new products that he said will outperform competing solutions.

ARM chips were once a tiny niche in the PC processor market, according to news agency reviewers. But the situation began to change when Apple began to release computers based on such chips of its own design. As a result, the share of Arm products in the global computer processor market by the end of 2021 reached 9.5%, which is three times more than a year earlier.

AMD's share of the global x86 processor market reached a record 25.6% by the end of 2021, compared to 21.7% a year earlier. At Intel, the indicator in comparison with the same periods, on the contrary, decreased - by 3.9 percentage points, to 74.4%. Thus, Intel and AMD continue to actually control the entire market. The study features VIA, which also produces chips, but their supply is too small compared to giants, so analysts attribute zero market share to VIA.

According to the researchers, AMD's share in the global processor market grew for 11 consecutive quarters, and at the end of all 2021 it amounted to 23.3%, which is 3.6 percentage points more than in 2020. The figure for the company turned out to be a record, the previous maximum dated 2006, when it was measured at 22.9%. At the same time, Intel's share in sales of x86 processors in 2021 decreased to 76.6% from 80.3% a year earlier.

Most of the decline that Intel experienced was due to a drop in shipments of Celeron laptop processors in the third. In the fourth quarter, the company was able to show growth thanks to the Intel Core i5/i7 1100 series chips for laptops.

AMD's main efforts in 2021 were aimed at releasing expensive processor models with the greatest profit for the company. Because of this, fewer budget chips went on sale, which allowed Intel to strengthen in the category of desktop processors. Compared to the fourth quarter of 2020, AMD's market share here fell by 3.1 percentage points, to 16.2%.

In the segment of processors for laptops, Intel also managed to increase supplies - here the leaders were the productive models of the Tiger Lake family, which showed themselves better than budget options. In the future, of course, they will be replaced by the new Alder Lake.^[13]

Intel lost a fifth of the server processor market in 4 years

Intel has lost a fifth of the server processor market in 4 years. Omdia analysts announced this in December 2021.

According to them, in 2017, Intel's share in the chip market for chips servers was measured at 98%, in 2019 it dropped to 92%, in 2020 - to 85%. According to the preliminary results of 2021, the decisions of the American company occupy 77% of the market under consideration. Thus, Intel's decline is accelerating, said Manoj Sukumaran, lead analyst at Omdia.

According to him, AMD, on the contrary, is rapidly strengthening its position: in 2017, the company's platforms accounted for only 1-2% of sales of processors for servers, and in 2020 - already 10%. In 2021, the share increased to 18%.

Researchers in December 2021 noted that AMD has been in the shadow of Intel for the past few years, but in recent years the situation has begun to change, which reflects the rate of quotations and financial indicators. In 2017, the value of AMD shares was $10.37, and by the end of 2021 it exceeded $138.

According to a publication in Light Reading, by the end of 2021 AMD is the main buyer of licenses for the x86 processor architecture, the company has repeatedly complained about Intel's strong control for days. Despite this, AMD has achieved high chip performance and may even have outperformed Intel in some areas. By the end of 2021, demand for AMD solutions is growing among operators of hyperscale data centers.

Manoj Sukumaran considers AMD to be one of the advantages of high core density and large cache per processor socket. Such products have greatly interested cloud providers, he added.

According to analysts Digitimes Research, AMD is supported in strengthening its position in the data center market by TSMC, which produces advanced graphics processors for the American partner. AMD remains the only chip developer to offer hybrid APU solutions with built-in CPUs and GPUs, and this should help build its own server ecosystem. AMD's share of the server processor market is expected to reach 20% by the end of 2021 versus 2-3% for several years.

According to Barclays analyst Blayne Curtis, AMD will be able to significantly increase its market share in server and personal computer processors in 2021-2022 due to its leadership in chip performance, while Intel will have difficulty mastering the 7/10nm process. Curtis recommends investors buy AMD shares (Overweight rating) and set the forecast for their value at $135.

In addition to AMD, ARM is putting strong pressure on Intel in the server processor market. In 2021, solutions on this architecture occupied about 5% of the market, which is twice as much as a year earlier. Based on ARM technologies, large companies such as Marvell Technology, Nvidia and Qualcomm build their processors.

Credit Suisse analyst John Pitzer will explain the growth in the share of ARM platforms in the server market by the fact that the owners of the largest data centers, for example, Amazon, are developing their own chips adapted for specific workloads, and use the ARM architecture for this purpose.

In addition, US sanctions against Huawei also contributed to the growing popularity of ARM solutions. Unable to buy components in the US, Huawei has moved from x86 platforms to ARM processors for its own cloud business, the latter being created under the Kunpeng brand.^[14]

2020: MediaTek beats Qualcomm in global smartphone processor market

For the first time, the leader has changed in the global market of processors for smartphones. In 2020, MediaTek rose to the first place, ahead of Qualcomm, Omdia analysts reported.

According to their estimates, in 2020 MediaTek increased the supply of chips for smartphones by 47.8% compared to 2019 - up to 351.8 million units. As a result, the market share of the Taiwanese company increased from 17.2% to 27.2% over the year.

Xiaomi is named the largest buyer of MediaTek processors, which in 2020 delivered 63.7 million smartphones based on these chips, which is more than three times the volume of a year ago.

MediaTek's second largest client is Oppo, which shipped 55.3 million smartphones running the Taiwanese partner's chipsets in 2020. In 2019, Oppo released 46.3 million such pipes. Under the Oppo and Realme brands, 83.19 million smartphones powered by MediaTek processors were released in 2020.

The highest dynamics of purchases of MediaTek processors was demonstrated by Samsung. This South Korean giant in 2020 launched 43.3 million smartphones running such chips on the market, which is 254.5% more than a year earlier.

MediaTek's business was also positively affected by sanctions against the Chinese company, Huawei which, as a result of the restrictions imposed, began to use the decisions of the Taiwanese partner more often instead of its single-chip systems. Kirin

The most important for MediaTek's growth in 2020 were the key price segments amid how the world suffered from the pandemic in the first half of the year, and the smartphone market recovered in the second half of the year, says Omdia analyst Zaker Li. - Entry and mid-range devices were popular with customers. MediaTek's competitive ability to provide an alternative to Qualcomm's chips in this price segment has helped the company grow.[15]

2019

Samsung outperforms Apple in the mobile processor market

The top three in the world of processor manufacturers for smartphones 2019 has changed: Samsung ahead Apple and climbed to the third position in the ranking. This is evidenced by data from the analytical company Counterpoint Research.

According to experts, in 2019, Samsung and its Exynos chipsets accounted for 14.1% of the global mobile processor market, up 2.2 percentage points from a year earlier. Apple's share during this time decreased by 0.5% and amounted to 13.1%.

Analysts linked Samsung's strengthening position in the market under consideration to the growth of the company's semiconductor business in North America and India.

Qualcomm remained the largest manufacturer of single-chip systems for smartphones in 2019, having recorded about 33.4% of the sales of such chips. In second place is MediaTek with a 24.6 percent result.

In the top five, only Samsung and Huawei were able to increase their market shares. Analysts did not specify the volume of the entire market in 2019 and only noted that there was an increase.

Counterpoint Research admits that the situation in the mobile processor market may change in 2020, given that Samsung has decided to use MediaTek processors more in lower and mid-range smartphone models, and OnePlus, Qualcomm's longtime client, has chosen MediaTek Dimensity chipsets for the OnePlus 8 Lite model.

Another factor that can affect the position of manufacturers in the leading group is due to the fact that Samsung decided to abandon the development of its own cores for Exynos mobile platforms and use conventional ARM cores under license. At the same time, Samsung began working with AMD, planning to license the latter's graphics IP cores for use in its own single-chip systems for mobile devices.^[16]

Microprocessors promised a gloomy future without a single lumen

The further development of the semiconductor industry can slow down sharply or even completely stall when trying to master the norms of the technological process following 5 nm, according to leading experts in the semiconductor industry^[17].

The scenario is not excluded, according to which the transition to the standards for the production of semiconductors with nodes of the order of 1 nm will take at least decades, however, there is a darker possibility that the development of technology will stumble already at 3 nm standards due to the lack of suitable materials for the manufacture of photoresists, reported the portal EE Times with reference to the results of the panel discussion of specialists in the framework of the annual conference on lithography problems SPIE Advanced Lithography 2019.

Initially, the session participants planned to note the fact of the previously predicted "death" of Moore's Law, according to which the number of transistors on a chip chip doubles every 24 months. However, following the meeting, its participants noted growing concern in the industry about uncertainty with the production technologies of the next generations of chips, tied, in turn, to a growing number of unresolved technological problems.

According to Harry Levinson, a specialist in lithography at AMD and GlobalFoundries with more than 30 years of experience, the moment of the "death" of semiconductor lithography is not far off.

"We are making progress, but extrapolating to sizes less than the diameter of the silicon atom will bring an end to lithography detail technologies," he said. (The radius of the silicon atom is 111 pm - approx. CNews).

The Technology Challenges of the Semiconductor Industry

Photoresists are a type of photosensitive polymers that are applied to a silicon wafer during the manufacture of microcircuits. Further, the photoresist is exposed by the lithographic system through the windows of the photographic patterns, followed by "etching" the tracks on the silicon crystal.

In "traditional" technical processes, laser installations with a wavelength of 248 nm or 193 nm were used - in the so-called "deep ultraviolet" spectrum (Deep UV), which borders on the frequency range perceived by the human eye: from the conditional "purple" border of 380 nm to the "red" border of 780 nm.

In combination with special phase-shifting photomultiplets and immersion technology (immersion in liquid), such photoresists made it possible to form chip nodes up to 14 nm

When moving to 10 nm standards, all the problems of such a technological complex escalated. Phase-shifting photographic patterns, which miraculously coped with the formation of 14 nm nodes when irradiated with a 193 nm laser due to interference, faced physical limitations when moving to 10 nm standards, as a result of which the percentage of finished product output from the plate decreased sharply. It was these limitations, in particular, that became a stumbling block in Intel's transition to 10nm standards.

The transition to the use of exposure installations with EUV ("extreme," or "hard" ultraviolet) lasers with a wavelength of 13.5 nm (an X-ray boundary region) facilitated the exposure of photoresists, but took almost two decades. In addition, at norms of 10 nm or less, a number of other characteristics of photoresists have become critical - heterogeneity, photosensitivity, etc.

When mastering more precise technological norms - from 5 nm or less, the dimensions of the chip nodes become comparable to dozens and even units of diameters of silicon atoms. The transition to "atomic" norms of the technical process introduces physical restrictions, which cannot be solved using lithography and modern photo masks.

2018: Apple ditches Qualcomm iPhone chips entirely in favor of Intel products

On July 25, 2018, it became known that Apple decided to completely abandon Qualcomm chips in its smartphones in favor of Intel products. We are talking about the so-called baseband modems, which are used to connect mobile devices to cellular networks. Read more here.

2011 3Q: Intel earns 80% of revenue

Intel showed weak growth in the market share of PC processors in the third quarter of 2011. AMD's results were much more dynamic, but despite this, the company plans to carry out a costly restructuring in early 2012.

In the third quarter of 2011, Intel received 80.2% of the total supply share of the global market, showing an increase of 0.9% compared to the second quarter. AMD secured 19.7% in the period, losing 0.7% over 2Q11. VIA Technologies earned 0.1% with corresponding losses of 0.2%.

Third quarter results by form factor category: Intel secured a share of 82.3% of the mobile processor segment, losing 2.1%, AMD ended the quarter with a share of 17.6% and a gain of 2.4%, and VIA managed to get 0.1% of this market.

In the server/workstation processor segment, Intel ended the quarter with 95.1% market share, giving a gain of 0.6%, AMD received 4.9% with a loss of 0.6%. In the desktop processor segment, Intel received 75.8% with an increase of 4.8%, AMD managed to provide 24.1% of the market with a loss of 4.8%.

Revenues of the global computer chip industry in the third quarter showed clear signs of recovery, rising by 16.1% compared to the same period in 2010 and reached $10.7 billion, which is 12.2% higher than the previous quarter, the analytical company IDC reports .

The closest rivals in the market, Intel and AMD, experienced ups and downs in the third quarter. AMD, for example, performed well in the mobile device market, while Intel gained an advantage in server chip sales.

IDC analyst Shane Rau, in a statement, noted an increase in the average selling price of OEM PC processors by more than 5% in the third quarter of 2011, stressing that the price grew for eight consecutive quarters. "Obviously, the volume of microprocessors with integrated Sandy Bridge GPU from Intel and Fusion from AMD is growing in the product lines of each of the companies and is driving the price increase," he said.

According to IDC, chips with integrated graphics occupied up to 73% of the total number of PC processors delivered by companies in the past quarter. Analysts conclude that things were going well for Intel in this period, AMD also showed slight growth.

Intel has reached 80.2% of the global PC processor market. The increase is small - 0.9% compared to the second quarter of 2011. At the same time, AMD showed losses of 0.7% in the period of the second and third quarters, eventually coming to a market share of 19.7%.

However, when analysts investigated the segment of the mobile chip market, it turned out that AMD showed a powerful rise, while Intel did not shine with the results. As a result, AMD received revenue growth of 2.4% and captured 17.6% of market share. By comparison, Intel sank 2.1%, still dominating with 82.3% market share.

As for the server/workstation market, Intel dominates here, gaining a whopping 95.1% share with a slight quarterly gain of 0.6%. AMD cut 0.6% to end the quarter with a 4.9% share. However, the company struggled in the desktop market sector, holding 24.1% of the market and showing a loss of 4.8%, while Intel received a corresponding 4.8% and retained 75.8% of the market.

Some of these figures are in line with a report by Mercury Research released earlier in the week. It also notes that the volume of global chip supplies has grown. However, Mercury Research announced AMD's seizure of global market share from Intel.

Implementing cost-cutting plans, AMD plans to lay off 10% of its employees worldwide and end "existing contractual obligations," the company announced Thursday. Rory Read, president of the company, said in a statement that cutting costs and "focusing" the company's employees on key aspects of its operations will increase AMD's competitiveness.

According to the restructuring plan, which includes layoffs, the company's savings next year should amount to $200 million in operating costs, AMD reports. The company envisions using much of that money to fund AMD's strategies to reduce energy consumption, develop markets and "cloud," the statement said.

The dismissal will affect employees of all divisions of the company in the world and is expected to happen in the first quarter of 2012.

AMD plans that the restructuring will be costly: in the fourth quarter, the company expects expenses for this part in the amount of $101 million and an additional $4 million - next year.

Recently, AMD has had problems since its production partner, GlobalFoundries, which was removed from AMD in 2009, experienced difficulties in the production process for AMD microprocessors of a new type. The complications led to a shortage of Fusion chips and affected the company's third-quarter earnings.

Notes