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Harnessing the power of the semiconductor value chain

February 1, 2022


In brief

The breadth and depth of the value chain

The flow of the value chain in the visual above is a simplified display of the global players involved for a semiconductor.

Data Processing

Computers, laptops and peripheral equipment are the largest market segment for semiconductors. These ICs range from memory storage chips to LEDs found in PC screens. Demand for these products experienced a spike due to the COVID-19 pandemic as employees and students worldwide were forced to at-home work and study.


The second largest market for chips is for those used in cell phones, wireless infrastructure and modems. The growth of network equipment in developing economies, the migration from 4G to 5G and growth in the smartphone market has boosted production by 24.1%. 5G is expected to be a major demand driver since new capabilities are needed for 5G smartphones.


With the continued focus on electric and autonomous vehicles, the auto market has the highest forecast growth of 12.4% by 2026. This is a prime example of an industry requiring increasingly sophisticated technology making it challenging for semiconductor companies to race to fulfill orders for new application-specific chips for the auto industry.

Impact of chip shortage on automotive


Of 71.4M in lost automotive sales


At an ASP of $40K, it translates to this loss in automotive sales


Cars sit idle in lots

The semiconductor supply chain trilemma is complicated by the fact that only two of three levers can co-exist at any point in time.

About the Authors

Timothy Chu

Managing Director – Strategy & Consulting, Semiconductor


Manager – Accenture Strategy

Jolie LeBlanc

Senior Manager – Accenture Strategy

Shaden Alsheik

Manager – Accenture Strategy

Cathy Chen

Manager – Strategy & Consulting, Mergers & Acquisitions

Michael Kurniawan

Manager – Strategy & Consulting, Semiconductor


Analyst, Strategy