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TAP TIMES          -30-                             FEBRUARY 2022


            Semiconductors in electronic                        easily surpassed in 2017 with a 28.9%
              systems set record in 2021                        figure.

        SCOTTSDALE, Arizona — The value of                      As shown, the semiconductor content figu
        semiconductor content in electronic                     re took another big jump in 2018 and set
        systems reached 33.2% last year, sur-                   a new high at 31.1%.  However, driven by
        passing the previous record high set                    a 25% increase in semiconductor sales last
        in 2018, says a new report.
                                                                                       year semiconductor
                                                                                       content in electron-
                                                                                       ic systems reached
                                                                                       33.2% in 2021, a new
                                                                                       all-time high.

                                                                                       Of course, the trend
                                                                                       of increasingly higher
                                                                                       semiconductor value in
                                                                                       electronic systems has
                                                                                       a limit.  Extrapolating
                                                                                       an annual increase in
                                                                                       the percent semicon-
                                                                                       ductor figure indefinite-
                                                                                       ly would, at some point
                                                                                       in the future, result
                                                                                       in the semiconductor
                                                                                       content of an electronic
                                                                                       system reaching 100%.

        Historically, the driving force behind the              The ultimate ceiling
        higher average annual growth rate of the                Whatever the ultimate ceiling is, once it
        semiconductor industry as compared to                   is reached, the average annual growth for
        the electronic systems market is the in-                the semiconductor industry will closely
        creasing value or content of semiconduc-                track that of the electronic systems market
        tors used in electronic systems (figure).               (i.e., about 4% per year).


        The first year on record that showed an                 In IC Insights’ opinion the “ceiling” is
        increase in semiconductor content in elec-              at least 40% but is not expected to be
        tronic systems during a year when the                   reached within the next five years.
        semiconductor market declined was 2009.                                                  icinsights.com
        This situation repeated itself again in
        2015.                                                   TSMC may add Taiwan assembly plant

        Content rising                                           TAIPEI, Taiwan — Various Asian me-
        The total semiconductor market declined                  dia are reporting that Taiwan Semi-
        by 1%, but the semiconductor content fig-                conductor Manufacturing Co. (TSMC)
        ure rose from 24.5% in 2014 to 24.8% in                  is planning to build an advanced
        2015. Until 2017, 2010 was the all-time                  packaging facility in Chiayi or Yunlin
        high for semiconductor content in elec-                  County in Southern Taiwan. TSMC has
        tronic systems at 25.9%. That mark was                   not confirmed the reports.
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