In 2022, the IT components and electrical and electronics sectors are expected to see slight growth, despite the negative base effect resulting from the surge in sales due to COVID-19 benefits in 2021, driven by the relief of the non-memory sector due to foundry expansion, the spread of virtual platforms due to the proliferation of new technologies, and the expansion of the automotive product market.

According to the '2022 Industry Outlook' recently released by Shinhan Investment & Securities, the IT components and electrical and electronics sectors are expected to show a clear upward cycle in 2022, despite concerns about a reverse base effect resulting from the rapid increase in sales due to the benefits from COVID-19 in 2021.


Shipments of laptops and tablets in 2022, which saw a surge in demand due to work-from-home activities in 2021, are expected to decrease by 7% each compared to the previous year.

In addition, TV sales, which saw a surge in shipments last year, are declining in the second half of the year, driven mainly by entry-level LCD product lines.

On the other hand, robust shipments were expected for smartphones. This is because 5G smartphone penetration fell short of expectations due to semiconductor shortages, and production was disrupted by supply chain issues. Additionally, manufacturers that performed poorly this year are expected to launch aggressive sales in earnest in 2022.

The supply chain issues that hampered the IT industry last year are expected to improve in 2022.

While it may take time for the system semiconductor shortage to fully normalize, semiconductor supply and demand are expected to ease in 2022 as foundry companies proceed with sequential expansions.

In addition, as the spread of COVID-19 in Southeast Asia subsides, it is reported that factories in Vietnam and Malaysia are resuming operations.

Although the issue of China's power shortage remains a variable, the Chinese government is responding swiftly to power procurement, so it is expected that the situation will not become more severe than in September and October 2021.

Amidst this, changes in advanced technology are expected to act as a variable.

With the launch of DDR5, some power management functions previously handled by the motherboard in DDR4 are now performed by DRAM modules. As a result, semiconductors such as PMICs, temperature sensors, RCDs, and data buffer ICs are being widely integrated into DRAM modules, leading to expectations of benefits for related components. In addition, metal power inductors are newly adopted in DDR5 to improve power management efficiency, which is expected to open up a new market.

Along with this, as metaverse platforms spread, the market for VR/AR devices and related components is expected to expand.

The VR/AR market is expected to grow to 28 million units in 2022, with a compound annual growth rate (CAGR) of 35% over the next five years until 2026.




In addition, the full-scale growth of the automotive camera market is expected with the blossoming of the ADAS and semi-autonomous driving markets.

Recently, the number of finished vehicles equipped with 5 to 10 or more cameras has been increasing, and the market size for automotive cameras is projected to grow from 110 million units in 2020 to 190 million units in 2022.

Subsequently, it is expected that even steeper high growth will be possible when the introduction of semi-autonomous driving accelerates and autonomous driving becomes commercialized.

Supply and demand for packaging substrates are also tight in 2022, and further improvements in market conditions are expected.

Recently, following the rise in prices for non-memory packaging substrates, prices for memory substrates have also started to rise, and investment support for packaging substrates has been confirmed from at least three semiconductor companies. In addition, a boom is expected as memory, non-memory fabless, or semiconductor companies frequently request one-on-one long-term supply contracts.

However, despite opportunities such as the metaverse and autonomous driving, threats were cited, including the possibility of IT component supply chains failing to improve and becoming prolonged, as well as a global economic downturn caused by monetary policy, private investment, and political issues.