TRADE SHIFTS INDEX 2021
RESOURCES
FAQS 2021

Electronic Products

Changes in 2021 from 2020:

  • U.S. total exports: Increased by $32.5 billion (12.9 percent) to $285.8 billion
    • U.S. domestic exports: Increased by $15.1 billion (10.3 percent) to $161.5 billion
    • U.S. re-exports: Increased by $17.5 billion (16.4 percent) to $124.2 billion
  • U.S. general imports: Increased by $88.3 billion (18.3 percent) to $572.0 billion

The value of U.S. domestic exports of electronic products[1] rose by $15.1 billion (10.3 percent) to $161.5 billion in 2021 (table EL.1), after falling by 8.2 percent in 2020.[2] The rise in exports was due primarily to an increase in exports of semiconductors and integrated circuits (up $5.0 billion); medical goods (up $3.0 billion); computers, peripherals, and parts (up $2.1 billion); and measuring, testing, and controlling instruments (up $1.5 billion). U.S. domestic exports to Mexico posted the largest increase in value ($2.7 billion, or 17.9 percent) (table EL.1). Of the 10 largest destinations for U.S. electronic product exports, only South Korea imported less in 2021 compared to 2020.[3]

The value of U.S. general imports of electronic products increased by $88.3 billion (18.3 percent) to $572.0 billion in 2021.[4] The rise in imports was due primarily to an increase in imports of computers, peripherals, and parts (up $22.1 billion); telecommunications equipment (up $16.4 billion); consumer electronics (up $9.7 billion); semiconductors and integrated circuits (up $9.7 billion); and medical goods (up $8.4 billion). U.S. imports from China posted the largest increase by value up $22.4 billion (or 13.9 percent) (table EL.2).

The upturn of U.S. and global economic activity in 2021, which followed the 2020 downturn due to the initial slowdown following the outbreak of COVID-19, contributed to the growth in both exports and imports of electronic products in 2021. Global consumer rising demand trends that began in 2020 continued into 2021. Demand for electronics was especially high as consumers purchased personal computers to socialize online, participate in remote schooling, and work from home due to the social distancing policies put into place in response to the ongoing COVID-19 pandemic. In particular, consumer spending on electronics increased despite ongoing supply chain disruptions.

U.S. Domestic Exports

The largest increase in exports among digests in this sector was in semiconductors and integrated circuits, which increased by $5.0 billion (18.4 percent) to $32.4 billion in 2021.[5] The rise in exports is attributable to higher unit values and higher production volumes for semiconductors stemming from rising downstream demand associated with the recovering global economy.[6] The ongoing effects of the COVID-19 pandemic drove strong demand for electronic devices in 2021, such as computers, that require semiconductors.[7] Further, an industry participant noted that the value of semiconductors in everyday products has continued to grow.[8] Within this digest, the largest increases in exports were in electronic integrated circuits like processors and controllers, up $3.4 billion (22.2 percent) to $18.7 billion in 2021,[9] and other electronic integrated circuits, up $1.4 billion (28.9 percent) to $6.2 billion.[10] The increase primarily involved exports to China, Malaysia, Israel, Ireland, and Taiwan. U.S. exports to China rose, in part, because several Chinese firms, namely Huawei and Semiconductor Manufacturing International Corporation (SMIC), stockpiled semiconductors and integrated circuits to minimize the impact of U.S. sanctions that entered into force in September 2021.[11]

The next-largest increase in exports was for medical goods, which rose by $3.0 billion (9.3 percent) to $35.8 billion.[12] The growth in exports was related to the increase in demand for medical goods associated with elective surgeries, which had been postponed or cancelled in 2020 due to the heightened concerns about the ongoing COVID-19 pandemic.[13] Within this digest, the largest increases in exports involved healthcare products like catheters, up $610 million (13.6 percent) to $5.1 billion; surgical instruments and appliances, up $443 million (8.9 percent) to $5.4 billion; and artificial parts of the body (other than artificial joints), up $411 million (18.7 percent) to $2.6 billion.[14] [15] [16] The increase primarily involved rising exports to the Netherlands, Canada, and China.

Exports of computers, peripherals, and parts increased by $2.1 billion (13.6 percent) to $17.3 billion in 2021.[17] The ongoing effects of the COVID-19 pandemic contributed to a second consecutive year of overall growth for the personal computer (PC) industry. Sales of PCs gained due to the need for remote work and learning, and are expected to remain above pre-pandemic levels for the next two-to-three years.[18] Globally, sales of PCs accelerated in emerging economies but decelerated in developed economies as pandemic-related demand lessened.[19] Industry analysts estimate that worldwide PC shipments grew by 14.8 percent to 348.8 million units in 2021, with shipments of traditional PCs (e.g., desktops, notebooks, and workstations) reaching their highest levels since 2012.[20] Within this digest, the largest increase in exports involved laptops (up $589 million or 36.4 percent),[21] printed circuit assemblies (up $497 million or 25.1 percent),[22] and automatic data processing storage units (up $429 million or 147.3 percent).[23] The rising U.S. exports were primarily to Mexico, the Netherlands, and the United Arab Emirates.

U.S. General Imports

U.S. imports of computers, peripherals, and parts rose by $22.1 billion (15.6 percent) to $163.4 billion in 2021.[24] Within this digest, the largest increase was in laptop computers, up $8.9 billion (17.5 percent) to $59.8 billion.[25] The ongoing COVID-19 pandemic compelled consumers and businesses to purchase computers for remote learning and work in 2021. Industry analysts observed a decline in U.S. sales during the fourth quarter that was attributed to supply chain issues and a return to in-person work and learning.[26] The increase primarily involved imports from China and Taiwan, two of the world’s leading producers and exporters of computer equipment.

Imports of telecommunications equipment grew by $16.4 billion (17.3 percent) to $111.3 billion.[27] The increase was mainly driven by the increase in imports of cellular phones, switches, and routers as worldwide demand for ​fifth-generation (5G) technology and infrastructure grew in 2021. Within this digest, the largest increase was in cellular phones, up $12.0 billion (24.8 percent) to $60.7 billion.[28] Imports of cellular phones grew in part as pent-up consumer demand for 5G smartphones was met as vendors introduced more 5G devices into the market.[29] The second-largest increase within this digest was in switches and routers, up $3.7 billion (9.6 percent) to $42.3 billion.[30] Telecommunications service providers expanded and upgraded their networks as demand for 5G technologies increased as consumers sought greater connectivity to support work-from-home and other applications that require large bandwidths.[31] The increase primarily involved imports from China and Vietnam.

From 2020 to 2021, imports of consumer electronics rose by $9.7 billion (23.0 percent) to $52.1 billion, representing the largest percentage change among the top five electronic digests in terms of value.[32] The increase in U.S. demand for these products largely mirrors the growth in demand for computer equipment discussed above. Within this digest, the largest increases were for flat screen televisions, up $2.5 billion (19.6 percent) to $15.2 billion,[33] headphones and microphone/speaker sets, up $2.1 billion (53.0 percent) to $6.0 billion,[34] and computer monitors, up $1.9 billion (33.6 percent) to $7.6 billion.[35] The increase in consumer electronic products primarily involved shipments from China, Mexico, and Vietnam.

Imports of semiconductors increased by $9.7 billion (21.6 percent) to $54.5 billion 2021.[36] Within this digest, the largest increases in imports were in electronic integrated circuits like processors and controllers, up $6.1 billion (28.7 percent) to $27.5 billion,[37] and other electronic integrated circuits, up $2.8 million (35.7 percent) to $10.4 billion.[38] The increase in imports of electronic integrated circuits was due to strong demand in downstream U.S. industries such as for the production of computers, telecommunications equipment, and automobiles.[39] As mentioned in the domestic exports section, industry participants noted that the value of semiconductors and integrated circuits in downstream products has continued to grow.[40] In addition to their increased use in information technology goods, ‘everyday items’ such as motor vehicles and household appliances have also increasingly used semiconductors to power new features and capabilities.[41] The increase primarily involved shipments from Malaysia, Taiwan, and Ireland.

 

[1] The Electronic Products sector consists of 25 product digests. Each USITC sector digest encompasses various 8-digit subheadings in the Harmonized Tariff Schedule of the United States (HTS). For a complete list of HTS subheadings classified in a particular sector or digest, see this data table.

[2] Unless otherwise noted, the export data used in this section are for domestic exports. For more information on trade terminology, please refer to USITC, “Special Topic: Trade Metrics,” Shifts in U.S. Merchandise Trade, 2014, June 2015; USITC DataWeb/Census, digests EL001-025, accessed February 17, 2022.

[3] This coincides with U.S. total exports to South Korea decreasing in 2021. For more information, see Part I of this report.

[4] USITC DataWeb/Census, digests EL001-025, accessed February 17, 2022.

[5] USITC DataWeb/Census, digest EL015, accessed February 22, 2022.

[6] SIA, 2021 State of the U.S. Semiconductor Industry, September 24, 2021; Clark, “Chip Shortage Creates New Power Players,” November 8, 2021; Cheng Ting-Fang, “Chip Prices Set to Rise into 2022,” September 6, 2021.

[7] To quantify demand growth, the Semiconductor Industry Association reported semiconductor sales increased $115.5 billion (26.2 percent) in 2021. SIA, “Global Semiconductor Sales,” February 14, 2022.

[8] For example, Applied Materials estimated that the value of semiconductors in smartphones rose from $100 in 2015 to $170 in 2020. Applied Materials, “2021 Investor Meeting,” April 6, 2021, 10.

[9] Processors and controllers are an essential part in laptops, smartphones, and antilock brake systems. USITC DataWeb/Census, HTS subheading 8542.31.00, accessed February 22, 2022. HTS subheading 8542.31.00 covers electronic integrated circuits, processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock, etc.

[10] USITC DataWeb/Census, HTS subheading 8542.39.00, accessed February 22, 2022. HTS subheading 8542.39.00 covers electronic integrated circuits, not elsewhere specified or included (n.e.s.o.i.).

[11] Bloomberg News, “China Stockpiles Chips,” February 3, 2021; Thubron, “China Imported a Record $35.9 Billion,” April 13, 2021.

[12] USITC DataWeb/Census, digest EL022, accessed February 22, 2022.

[13] GlobalData Healthcare, “General Surgery Devices Market,” February 11, 2022.

[14] USITC DataWeb/Census, HTS subheading 9018.39.00, accessed February 22, 2022. HTS subheading 9018.39.00 covers catheters, cannulae and the like, not elsewhere specified or included (n.e.s.o.i.), used in medical, surgical, dental or veterinary sciences, and parts and accessories thereof.

[15] USITC DataWeb/Census, HTS subheading 9018.90.80, accessed February 22, 2022. HTS subheading 9018.90.80 covers instruments and appliances used in medical, surgical, dental or veterinary sciences, n.e.s.o.i., and parts and accessories thereof.

[16] USITC DataWeb/Census, HTS subheading 9021.39.00, accessed February 22, 2022. HTS subheading 9021.39.00 covers artificial parts of the body (other than artificial joints) and parts and accessories thereof, n.e.s.o.i.

[17] USITC DataWeb/Census, digest EL017, accessed February 22, 2022.

[18] Gartner, “Gartner Says Worldwide PC Shipments Declined 5%,” January 12, 2021.

[19] IDC, “Growth Streak for Traditional PCs Continues,” January 12, 2022; Dell Technologies Inc., “10-K Form 2021,” March 26, 2021; HP Inc., “10-K Form 2021,” December 9, 2021; Leswing, “The PC Market Just Had Its Best Q1 since 2015,” April 12, 2021.

[20] IDC, “Growth Streak for Traditional PCs Continues,” January 12, 2022.

[21] USITC DataWeb/Census, HTS subheading 8471.30.01, accessed February 22, 2022. HTS subheading 8471.30.01 covers portable automatic data processing machines, not over 10 kg, consisting at least a central processing unit, keyboard, and display.

[22] USITC DataWeb/Census, HTS subheading 8473.30.11, accessed February 22, 2022. HTS subheading 8473.30.11 covers printed circuit assemblies, not incorporating a cathode ray tube, of the machines of HTS heading 8471.

[23] USITC DataWeb/Census, HTS subheading 8471.70.90, accessed February 22, 2022. HTS subheading 8471.70.90 covers automatic data processing (ADP) storage units other than magnetic disk drive units, n.e.s.o.i., not entered with the rest of a system.

[24] USITC DataWeb/Census, digest EL017, accessed February 22, 2022.

[25] USITC DataWeb/Census, HTS subheading 8471.30.01, accessed February 22, 2022. HTS 8471.30.01 covers portable automatic data processing machines, not over 10 kg, consisting at least a central processing unit, keyboard and display.

[26] Gartner, “Gartner Says Worldwide PC Shipments Declined 5% in Fourth Quarter of 2021 but Grew Nearly 10% for the Year,” January 12, 2021.

[27] USITC DataWeb/Census, digest EL002, accessed February 22, 2022.

[28] USITC DataWeb/Census, HTS subheading 8517.12.00, accessed February 22, 2022. HTS 8517.12.00 covers telephones for cellular networks or for other wireless networks.

[29] IDC, “Global Smartphone Shipments Expected to Grow 5.3%,” December 2, 2021.

[30] USITC DataWeb/Census, HTS subheading 8517.62.00, accessed February 22, 2022. HTS 8517.62.00 covers machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus.

[31] Sag, “The State Of 5G In Early 2022,” January 18, 2022; Verizon, “Verizon Exceeds 5G Build Plan for 2021,” December 9, 2021; Gartner, “Gartner Forecasts Worldwide 5G,” August 4, 2021.

[32] USITC DataWeb/Census, digest EL003, accessed February 22, 2022.

[33] USITC DataWeb/Census, HTS subheading 8528.72.64, accessed February 22, 2022. HTS 8528.72.64 covers color television reception apparatus w/flat panel screen, video display diagonal over 34.29 cm, incorporating a VCR or player.

[34] USITC DataWeb/Census, HTS subheading 8518.30.20, accessed February 22, 2022. HTS 8518.30.20 covers headphones, earphones and combined microphone/speaker sets, other than telephone handsets.

[35] USITC DataWeb/Census, HTS subheading 8528.52.00, accessed February 22, 2022. HTS 8528.52.00 covers other monitors capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471.

[36] USITC DataWeb/Census, digest EL015, accessed February 22, 2022.

[37] USITC DataWeb/Census, HTS subheading 8542.31.00, accessed February 22, 2022. HTS subheading 8542.31.00 covers electronic integrated circuits, processors & controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock, etc.

[38] USITC DataWeb/Census, HTS subheading 8542.39.00, accessed February 22, 2022. HTS subheading 8542.39.00 covers electronic integrated circuits, n.e.s.o.i.

[39] Ewing, “A Tiny Part’s Big Ripple,” April 23, 2021; Shankland, “Global Chip Shortage Gives US Manufacturing a Boost,” February 8, 2022; Hanbury, Radzevych, Grant, “Engineering Your Way Out,” December 23, 2021.

[40] Applied Materials, “2021 Investor Meeting,” April 6, 2021.

[41] For example, Applied Materials estimated that the value of semiconductors in cars rose from $310 in 2015 to $460 in 2020. The increased added value comes from hardware needed to support electronic vehicle batteries, advanced driver assistance, infotainment, and navigational systems. Applied Materials, “2021 Investor Meeting,” April 6, 2021; EP&T, “Automotive Semiconductor Industry Surges,” February 17, 2022, 10.

 

Bibliography—Electronic Products

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