As automotive electrification, industrial automation, new energy, communications infrastructure, and smart devices continue to advance, chips are being integrated into nearly every aspect of production and daily life. Expanding market demand has injected new momentum into the global semiconductor industry while also placing higher requirements on product performance, supply assurance, and industrial-chain coordination.

In July 2021, semiconductor market research firm IC Insights forecast that global integrated circuit shipments would reach 391.2 billion units in 2021, representing year-on-year growth of 21%. If achieved, this would mark the highest annual growth rate in global IC shipments since 2010. The firm also noted that the projected shipment volume for 2021 would be more than 11 times the 34.1 billion units shipped in 1990.

It should be clarified that the word “this year” in the original report referred to 2021, not the current year. In addition, the figure of 391.2 billion units referred to projected shipments of integrated circuits and should not be directly equated with shipments of discrete power semiconductor devices such as MOSFETs, IGBTs, and SBDs.

Growing Market Demand Accelerates Semiconductor Industry Development

IC Insights’ forecast showed that, after a decline in shipments in 2019 and a recovery in 2020, the global IC market entered a period of significant expansion in 2021. At the time, the firm projected that global IC shipments would achieve a compound annual growth rate of approximately 11% from 2020 to 2025, higher than the growth rate recorded during the previous five years.

Subsequent data confirmed that the global semiconductor market maintained strong growth in 2021. According to the Semiconductor Industry Association, global semiconductor sales reached USD 555.9 billion in 2021, an increase of 26.2% year on year. Both sales revenue and product shipments reached record highs at that time.

The rapid expansion of the chip market was driven by the continued development of digitalization, intelligence, and electrification. New energy vehicles, photovoltaic and energy storage systems, industrial control, data centers, communications equipment, and consumer electronics all require more semiconductor products with stronger performance and higher reliability.

Market competition has therefore gradually shifted from a simple focus on production volume toward comprehensive competition in technology, quality, cost, delivery, and service capabilities.

Moving from Shipment Growth to Quality Improvement

The increase in chip shipments reflects the continued expansion of the global electronic information industry, but shipment volume is not the only measure of competitiveness in the semiconductor sector.

As end products become more functional and sophisticated, customers are placing higher demands on chip products. Different applications now focus not only on whether a device can perform its basic functions, but also on energy efficiency, power density, voltage capability, thermal performance, product lifespan, and long-term operating stability.

In applications such as new energy vehicles, industrial equipment, photovoltaic inverters, energy storage power supplies, and charging infrastructure, semiconductor devices often operate under high temperatures, high voltages, high currents, and complex working conditions. Any issue in product design, wafer processing, package thermal management, or quality control may affect the efficiency and reliability of the final system.

The growth of global chip demand therefore represents not only greater market opportunities, but also a need for semiconductor companies to further strengthen research and development, manufacturing management, product validation, and supply chain coordination.

Broad Application Prospects for Power Semiconductors

Power semiconductors are essential electronic devices for energy conversion, power control, rectification, switching, and protection. As energy conservation, emissions reduction, and energy structure transformation continue to advance, the value of highly efficient power devices is becoming increasingly important.

MOSFETs are widely used in power management, consumer electronics, industrial control, and automotive electronics because of their high switching speed and control efficiency. IGBTs are well suited to medium- and high-power energy conversion applications. Third-generation semiconductor devices such as SiC and GaN also demonstrate strong growth potential in high-frequency, high-temperature, high-voltage, and high-efficiency applications.

SBDs and other devices also play important roles in rectification, power conversion, and system protection. Power devices based on different materials, structures, and packaging formats complement one another and jointly support increasingly diverse end-use requirements.

As the market continues to expand, power semiconductor companies must not only seize opportunities created by rising demand, but also place greater emphasis on technological expertise, product consistency, reliability validation, and customer application support.

Hertz: Focusing on Core Products and Quality-Driven Growth

Hertz has long focused on the research, development, and advancement of power semiconductor products, with key product areas including MOSFETs, IGBTs, SiC devices, GaN devices, and SBDs.

The company brings together professionals with expertise in semiconductor wafer design, device development, and packaging manufacturing. Driven by technological innovation and centered on product quality, Hertz continues to improve its product design, process development, packaging and testing, and quality management systems.

As semiconductor market demand continues to grow and application scenarios expand, Hertz will closely monitor technological developments in new energy vehicles, industrial control, photovoltaic and energy storage systems, power management, and consumer electronics. Guided by actual customer needs, the company will continue to advance product development and technical optimization.

Hertz will further improve the performance, stability, and reliability of its power devices, strengthen collaboration with wafer manufacturing, packaging and testing, and end-application partners, and continuously enhance its product supply and customer service capabilities. The company is committed to providing high-quality power semiconductor products for a wide range of applications.

Seizing Industry Opportunities and Building the Future with Chips

The continuous expansion of global chip shipments, from tens of billions to hundreds of billions of units, reflects the semiconductor industry’s role as a vital foundation of modern industrial development.

Looking ahead, as new energy vehicles, renewable power generation, energy storage systems, smart manufacturing, and digital infrastructure continue to develop, demand for efficient, stable, and reliable semiconductor devices will remain strong.

Hertz will continue to uphold its development philosophy of “Building the Future with Chips, Advancing through Innovation.” The company will remain deeply committed to the power semiconductor sector, continue strengthening technological innovation and quality development, actively seize opportunities created by industry growth, and strive to create greater value for customers while contributing to the high-quality development of China’s semiconductor industry.