01 Mar 2022 -

MPU growth to slow in 2022 after phone MPU surge, says IC Insights

Total MPU sales are expected to rise 7% this year with cellphone processors increasing 10% following a 31% jump in 2021, according to the latest report from IC Insights.

 Worldwide sales growth in total 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, according to the 1Q22 update’s forecast.

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.

After cellphone application processor sales jumped to a record-high $35.0 billion in 2021, the growth rate is expected to decrease to 10% in 2022, which will lift this mobile microprocessor segment to revenues of $38.4 billion, based on IC Insights’ forecast. Tight supplies of leading-edge smartphone processors and continuous integration of more functions, acceleration units, powerful graphics, and high-speed 5G modems on these MPUs will increase the average selling price of units by 4% in 2022 after the ASP climbed 22% both in 2021 and 2020, says the new update report.

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