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AUSTIN, TX – 2021 was a record year for the semiconductor industry and OSAT revenues, but the outlook for 2022 is less certain, according to new data from TechSearch International.

The war in Ukraine, inflation, China’s Covid lockdown, and continued supply chain disruptions threaten global economic growth in 2022 and could impact the electronics industry.

High-performance packaging using heterogeneous integration is a bright spot. Data center spending continues to expand the need for servers, AI accelerators, and network switches. Applications for machine learning are increasing.

While there is strong demand for many devices, shortages of leadframes and substrates are limiting shipments. Body size increases for buildup substrates are a result of current capacity shortages. Growth for Cu clip packages remains strong, driven by increased demand for MOSFETs used in data centers, 5G infrastructure, and PCs. Lower growth projections for smartphones will result in less demand for many packages.

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