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Industry News

MPUs Grow 7% in 2022

Total microprocessor sales in 2021 maintained strength, growing 14% to a record-high $102.9 billion after climbing 16% in 2020, when pandemic lockdowns drove up demand for PCs and large-screen smartphones, says the February 1Q Update of IC Insights’ 2022 McClean Report.

Worldwide sales growth in  microprocessors is expected to slide back in 2022 to an increase of 7%, which will lift the MPU market to another record high of $110.4 billion, with unit shipments rising 6% to 2.6 billion processors, says IC Insight’s report.

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The total microprocessor market hung on to double-digit percentage growth in 2021 primarily because cellphone processor sales surged 31% as users moved to faster smartphones, including those built with new fifth-generation (5G) cellular modems, more powerful cameras, and artificial intelligence (AI) machine-learning capabilities for automatic performance improvements.

Computer CPU growth eased back after strong demand slowed for personal and home computers once many consumers, businesses, and schools had bought new systems for remote working and at-home education.

Sales of computer CPU MPUs—including x86 processors sold by Intel and rival Advanced Micro Devices for traditional notebook and desktop personal computers—are forecast to rise by another 4% in 2022 to a record-high $50.5 billion.

Embedded microprocessor sales for a broad range of end-use systems—including industrial, communications, automotive, and IoT are projected to grow 9% in 2022 to about $21.5 billion after increasing 11% in both 2021 and 2020.

IC Insights forecasts total MPU sales to increase by a CAGR of 5.3% between 2021 and 2026 to $133.3 billion.

Cellphone application processor sales are projected to rise by a CAGR of 6.3% in the five-year forecast to $47.4 billion while computer CPU revenues are expected to grow by an annual rate of 3.7% to $58.1 billion in 2026.

Embedded MPU sales are forecast to grow by the fastest five-year average in microprocessor market, increasing by a CAGR of 7.2% to reach $27.8 billion in 2026, says the update.

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