Semiconductors bring back the sizzle

The semiconductor sector’s profits are climbing, both absolutely and relative to other industries, and show no signs of slowing. The sector saw aggregate profits escalate from $3.5 billion in 2000–04 to $49.3 billion 2016–20. In future, we estimate that semiconductors could be the world’s third-most profitable industry.

In recent years, the semiconductor industry’s economic profitability has improved relative to others, and this trend is expected to continue.

To read the article, see “Value creation: How can the semiconductor industry keep outperforming?,” October 15, 2021.