According to the American Semiconductor Industry Association (SIA), in 2021 alone, the global semiconductor industry sales reached a record $555.9 billion, but demand for semiconductors in the coming years is expected to “significantly increase”. At the same time, China remains the largest market for these products, which were sold there last year for $192.5 billion, writes CNBC.

The reason for this growth in semiconductor sales was the increase in production by companies to meet the demand for semiconductors in the context of a shortage of chips around the world.

According to John Neuffer, president and CEO of the Association, “Demand for semiconductor manufacturing will increase significantly in the coming years as microchips are increasingly incorporated into the core technologies of the present and future.”

The global chip shortage has hit all manufacturing industries, from consumer electronics to automakers, and many companies have found themselves unable to meet the increased demand. At the same time, governments and lawmakers around the world are trying to secure the supply of microchips and invest in their production “closer to home.”

For example, last year, U.S. President Joe Biden allocated $50 billion for semiconductor manufacturing and research as part of a $2 trillion economic stimulus package. The bill is still being drafted and is designed to create incentives for advanced research and development in this area and ensure supply chain security.

Meanwhile, the European Commission also announced a new European chip law that will allocate up to 15 billion euros ($17.11 billion) of additional public and private investment in the field through 2030.

China, still dependent on foreign technology for semiconductors, nevertheless racked up a record $192.5 billion in sales in 2021, 27.1% more than any other market.

Over the past few years, the country has focused on developing its domestic chip industry amid geopolitical tensions with the U.S., making it a priority to grow its self-sufficiency in semiconductors.