2019 Microprocessor Slump Snaps Nine Years of Record Sales

MPU market being pulled down by weakness in smartphones and servers, as well as the fallout from the U.S. China trade war. A modest rebound is expected in 2020, followed by new all-time high sales in 2021.

October 10, 2019 - The microprocessor market’s string of nine straight record-high annual sales between 2010 and 2018 is expected to end this year with worldwide MPU revenue dropping 4% to about $77.3 billion because of weakness in smartphone shipments, excess inventories in data center computers, and the global fallout from the U.S.-China trade war, according to IC Insights’ recently updated forecast.  Microprocessor sales are expected to stage a modest rebound in 2020, growing 2.7% to $79.3 billion (Figure 1) and then are forecast to reach a new record-high level of about $82.3 billion in 2021, based on IC Insights’ outlook for MPUs in the Mid-Year Update to the 2019 McClean Report.

Figure 1

The Mid-Year Update projection pulls in the previously expected 2020 slowdown in MPU sales to this year and deepens the decline compared to the 2019 McClean Report’s original January forecast, which showed a 3.9% increase in microprocessor sales in 2019 followed by a negligible decrease of 0.1% in 2020.  Total MPU revenue is now expected to increase by a compound annual growth rate (CAGR) of 2.7% between 2018 and 2023, reaching $91.7 billion in the final year of the forecast.  Total microprocessor shipments are projected to rise by a CAGR of just 1.0% in the forecast period to reach 2.4 billion units in 2023.

About 29% of microprocessor dollar-sales volume in 2019 is expected to come from cellphone application processors ($22.2 billion) and 3% from similar mobile MPUs in tablet computers ($2.5 billion).  Nearly 52% of total MPU revenue in 2019 is forecast to come from central microprocessors used in notebook and desktop PCs, “thin-client” Internet/cloud-computing systems, servers, mainframes and supercomputers ($39.8 billion).  Nearly all of the central-processing unit MPUs in computers are based on the x86-based designs sold by Intel and rival Advanced Micro Devices and just 1% of the sales total having RISC architectures, such as those licensed by SoftBank’s ARM subsidiary in the U.K.  

About 17% of total MPU sales in 2019 are now expected to come from embedded-processing applications ($12.9 billion), says the Mid-Year Update of the 2019 McClean Report.   Embedded MPUs continue to be a bright spot in the market with sales forecast to grow 10% in 2019 from $11.7 billion in 2018, when these processors represented about 15% of total microprocessor revenue.  Embedded processor sales are being driven by increased connection to the Internet of Things (IoT), growing automation and artificial intelligence in systems, and the spread of sensors in cars, industrial equipment, consumer products, and other end-use applications.

Report Details:  The 2019 McClean Report

Additional details on the MPU market are provided in the Mid-Year Update to The McClean Report—A Complete Analysis and Forecast of the Integrated Circuit Industry.  A subscription to The McClean Report includes free monthly updates from March through November (including the 200+ page Mid-Year Update), and free access to subscriber-only webinars throughout the year.  An individual user license to The McClean Report is priced at $4,990 and includes an Internet access password.  A multi-user worldwide corporate license is available for $7,990.




Review Article Be the first to review this article
Aldec

 Advanced Asembly

Featured Video
Latest Blog Posts
Bob Smith, Executive DirectorBridging the Frontier
by Bob Smith, Executive Director
You’re Invited! SEMI’s Innovation for a Transforming World
intelThe Dominion of Design
by intel
The Long Game: Product and Security Assurance
Anupam BakshiAgnisys Automation Review
by Anupam Bakshi
Setting a High Standard for Standards-Based IP
Jobs
Circuit Design & Layout Simulation Engineer - Co-Op (Spring 2021) for Global Foundaries at Santa Clara, California
Business Operations Planner for Global Foundaries at Santa Clara, California
Principle Engineer (Analog-Mixed-Signal Implementation) for Global Foundaries at Santa Clara, California
Technical Product Manager- SISW-EDA 238452 for Siemens AG at Fremont, California
Senior HID Sensor Algorithm Architect for Apple Inc at Cupertino, California
Senior Staff Field Application Engineer for Global Foundaries at Santa Clara, California
Upcoming Events
Join Chipx2021 - at Tel Aviv Expo convention center Tel Aviv Israel - Jun 21 - 22, 2021
Innovation for a Transforming World -virtual Event at United States - Jul 13 - 14, 2021
DesignCon 2021 at San Jose McEnery Convention Center San Jose, CA San Jose CA - Aug 16 - 18, 2021
SEMICON Southeast Asia 2021 Hybrid Event at Setia SPICE Convention Centre Penang Malaysia - Aug 23 - 27, 2021
Verific: SystemVerilog & VHDL Parsers
True Circuits PHY



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise