Top 5 Trends in Semiconductor Industry
The global semiconductor industry has been evolving and growing steadily. This growth has largely been driven by the soaring demand for cutting-edge smart devices and related technological advancements. Semiconductors have become indispensable and are now widely adopted in a variety of industries- Defence, Transportation, Communications, Consumer electronics, Clean energy, Aerospace and Automotive.
There are many reasons why they hold so much value and are used in almost all electronic gadgets. Firstly, they are highly portable and low priced. This extends the dependability as they can be integrated into diverse appliances. Secondly, they are long-lasting and need less power input, making them an ideal material for varied purposes in a wide range of products.
Enterprises linked with the semiconductor industry are also encountering changes. Semiconductor packing which aims to protect the semiconductors from damages has a market which was estimated at USD 28.13 billion in 2019. As per the reports published by Next Move Strategy Consulting, the Global Semiconductor Packing Market size is predicted to reach USD 63.61 billion by 2030 with a CAGR of 7.7% from 2020-2030. Geographically, China, Japan, Vietnam and South Korea are among the top nations dominating the production of semiconductors.
Uses of Semiconductors
Semiconductors are the foundation of contemporary electronics. They are present in microcontrollers, integrated chips, diodes, transistors, photosensors, calculators, 3D printing machines, self-driving cars, solar plates, and other such technological devices. MOSFET and Transistor -used in electrical circuits as a switch- are also produced with the help of semiconductors. The physical and chemical characteristics of semiconductors make them proficient in the creation of tech tools.
Apart from electronics, they help in the working of trains, internet, ATMs and various other forms of communication. They are even used in the medical system- from filling of prescriptions to the completion of lab work. Practically, these small technological wonders support us to make our lives more comfortable.
Top 5 Trends in Semiconductor Industry
Now that we know the importance of semiconductors, it would not be incorrect to state that their vital functionality has the power to contribute to the improvement of many superior-tech tools across every sector. Here are the top 5 Semiconductor Industry Trends that will shape the future:
- 5G Communication
After gaining prominence, the world of 5G technology will create a huge impact on the global semiconductor industry. The 5G chipset allows faster flow and processing of information. These ambitious integrated chipsets will be able to transfer data at a rate 10 times faster than the previous 4G. In this new ecosystem, semiconductors will be accomplishing new specifications. Moreover, producers will have to improve the product potentials of storage, mobile devices and servers. According to the reports published by Next Move Strategy Consulting, the Global 5G Chipset Market size was estimated at USD 1.53 billion in 2019 and is predicted to reach USD 90.79 billion by 2030 with a CAGR of 44.95% from 2020-2030.
- Internet of Things (IoT)
The industrial application of the Internet of Things (IoT) is set to stir the global semiconductor industry. It will offer a myriad of opportunities to the semiconductor companies. Due to its capabilities, IoT, along with domains like silicon photonics, has come under the purview of heavy research. As more IoT products will enter the market, the demand for semiconductor chips will witness a rise. Advanced IoT devices will also possess their own analytics and microcontrollers, making them less exposed. From modern automation systems to connected appliances, semiconductor-integrated IoTs will dominate their presence everywhere.
- Autonomous Cars
In the automotive industry, self-driving vehicles are the next big thing that will function with the assistance of semiconductor chips. Integrated semiconductor chips in the next-generation cars would perform different collaborative operations. These self-sustaining vehicles with better electronic solutions will be supported with automotive semiconductors for improved connectivity, enhanced sensors, battery performance in EVs, automation, and much more. Automotive Artificial Intelligence Software will escalate the operational efficiencies of self-driving and semi-autonomous vehicles. According to the reports published by Next Move Strategy Consulting, the Global Automotive Artificial Intelligence Software Market size is predicted to reach USD 53.98 billion by 2030 with a CAGR of 44.8% from 2020-2030.
- Artificial Intelligence (AI)
In recent years, AI technology has seen mass adoption, paving way for enterprises to strategize the AI-integrated semiconductor chips. This will result in several advantages across different industries like operational cost reduction, better performance and increase in manufacturing speed, enhanced efficiency and response time etc. The demand for AI-based applications and equipment will directly exert influence on the growth opportunities for semiconductor companies. Furthermore, the massive upsurge in research and development, increased use of autonomous robotic at various industry verticals, and high-tech product launches shall create new market-opportunities, fueling-up the growth-rate of artificial intelligence (AI) chip market, over the forecast period.
- China's domination in the Semiconductor Industry Market Share
In 2019, China’s semiconductor industry revenue was expected to grow by 25% to approximately USD 110 billion, from an estimated USD 85 billion in 2018. Over the past few years, China has been dominating the global semiconductor industry. Since it is leading by a large number, it is predictable that it will maintain this position for the foreseeable future. The Chinese companies are witnessing high sales as they are transitioning from low-cost production to concentrating on the development of high-value tech product ranges. Many Chinese semiconductor companies are already working on specialized designing of semiconductors for numerous applications. China's supremacy and competitiveness in the semiconductor industry will be tough to challenge in the upcoming years.
To Sum Up
As years are passing by, tracking the evolution of technology is becoming harder. While artificial intelligence, 5G, IoT, autonomous cars are all in the initial phase - most companies are just starting out for their execution- they will have major implications on the semiconductor industry in the coming years. Some of the top semiconductor companies in the world like Micron Technology, Intel Corporation, UTAC Group, Carsem, Powertech Technology, Qualcomm Technologies, Fujitsu Ltd, are swiftly innovating and adapting, as they recognise the numerous benefits these technologies are capable to offer. With perpetual technological advancement, the global semiconductor industry offers a plethora of opportunities and is set to witness a more promising future.
(Keywords- Semiconductor industry, Uses of Semiconductors, Semiconductor packing, Top 5 Trends in Semiconductor Industry, 5G Communication, Internet of Things, Semiconductor companies, IoT devices, Autonomous cars, Automotive Artificial Intelligence Software, Semi-autonomous vehicle, Artificial Intelligence, AI technology, Global Semiconductor Packing Market, Next Move Strategy Consulting, Technological devices)