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SMT007-Feb2022

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FEBRUARY 2022 I SMT007 MAGAZINE 87 In today's economy, the main issue is you can't sell what you don't have. Companies now have the choice to take advantage of resources available to immediately improve production and experience long-term savings. is will allow companies to shed extrane- ous burdens of paying for air shipping, overtime, and other expenses in efforts toward getting products to customers quickly. By having your production in- house, none of those expenses will be necessary for reaching demand. ink- ing outside the box allows companies to offer consistent, high-quality, quickly delivered goods at a fraction of their pre- vious overhead. To anyone considering purchasing their own equipment, as in the case of CoralVue, David D'Aquin has some final advice: "Given the state of the world economy and political climate, we felt it was best to take control of as much of our business operations as possible. If PCBs are vital to your business, then an invest- ment in an SMT production line could determine your future success." SMT007 References 1. "Tesla Car Deliveries Surge by 87%," by Rebecca Elliot, Wall Street Journal, January 3, 2022, pages B1-B2. 2. "How to Ditch Insanely Long Lead Times: An Inside Look with CoralVue on Switch- ing to In-House Production," Manncorp blog post, December 20, 2021. 3. If the amount spent on the equipment purchase exceeds $2,500,000, the deduc- tion begins to phase out dollar-for-dollar. Emmalee Gagnon writes about SMT-related top- ics and customer stories for Manncorp. To read past columns or contact Gagnon, click here. Worldwide semiconductor revenue increased 25.1% in 2021 to total $583.5 billion, crossing the $500 bil- lion threshold for the first time, according to prelimi- nary results by Gartner, Inc. "As the global economy bounced back in 2021, shortages appeared throughout the semiconduc- tor supply chain, particularly in the automotive indus- try," said Andrew Norwood, research vice president at Gartner. "The resulting combination of strong demand as well as logistics and raw material price increases drove semiconductors' average selling price higher (ASP), contributing to overall revenue growth in 2021. "The 5G smartphone market also helped drive semi- conductor revenue, with unit production more than doubling to reach 555 million in 2021, compared to 250 million in 2020. U.S. sanctions imposed on Hua- wei resulted in other Chinese smartphone OEMs gain- ing share and fueling growth for 5G chipset vendors such as Qualcomm, MediaTek and Skyworks. Mean- while HiSilicon, Huawei's chip subsidiary, saw revenue decline from $8.2 billion in 2020 to around $1 billion in 2021." Samsung Electronics regained the top spot from Intel for the first time since 2018, with revenue increasing 31.6% in 2021 (see Table 1). Its memory revenue grew 34.2% in 2021, in line with the growth rate of the over- all memory market. Intel dropped to the No. 2 position with 0.5% growth in 2021, delivering the lowest growth rate among the top 25 vendors. Memory was again the best-performing device cat- egory, primarily due to increased server deployments by hyperscale cloud providers to satisfy remote work- ing, learning and entertainment needs, as well as a surge in end-market demand for PCs and ultramobiles. Revenue increased $42.1 billion over 2020, which amounted to 33.8% of overall semiconductor revenue growth in 2021. Within memory, DRAM had the best performance with revenue growth of 40.4% in 2021, increasing reve- nue to $92.5 billion in 2021. Strong demand from serv- ers and PCs created a DRAM undersupply that drove double-digit ASPs through most of the year. Gartner Says Worldwide Semiconductor Revenue Grew 25.1% in 2021, Exceeding $500 Billion for First Time

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