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With average prices for semiconductor components going down dramatically in 2019, especially DRAM and NAND, major chipmakers have been forced to reduce their production output. As a result, the silicon market is expected to shrink by 12 per cent year-on-year.
According to analysts at IC Insights, the global semiconductor market will total just $443.8bn in 2019, having exceeded the $500bn mark for the first time a year ago.
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This doesn't mean fewer devices are equipped with chips – the overall electronic systems market is projected to grow 4 per cent this year to $1.68 trillion – but that device manufacturers opt for fewer, or cheaper, silicon components.
Back in 2018, average semiconductor content in electronic systems – as a fraction of the overall cost – reached a record high of 31.1 per cent.
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This year, the value of silicon baked into your average electronic device is expected to drop to 26.4 per cent – and according to IC Insights, the industry won't see the ratio going above 31 per cent again until 2023.
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