The World semiconductor Trade Statistics Organization (WSTS) said on Tuesday that the global semiconductor market is expected to grow by 8.4% year-on-year in 2021 to reach $469.4 billion, a record high. The popularity of 5G and the recovery of the automotive industry will bring benefits to the semiconductor market.

The new forecast is $17.1 billion higher than a forecast released by the group in June. Due to the popularity of 5G, the demand for semiconductors and sensors is high. In addition, due to the impact of the new crown epidemic, home office and online teaching have increased, and investment related to personal computers and data centers is also expected to increase.

According to specific products, the memory market in 2021 will increase by 13% year-on-year, which will play a driving role in the whole. Currently, the demand for semiconductor memory used in smartphones and data centers is increasing, and manufacturers have begun to increase production.

The market for “logic semiconductors” such as CPUs (central processing units) is also expected to grow by 7%, due to the expanding utilization of artificial intelligence (AI) as 5G spreads.