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Macro trends in Semiconductors Industry

Macro trends in Semiconductors Industry

The extensive research and development made it possible to harness macro benefits from microchips. From mobile phones to televisions, most of the gadgets of current usage incorporate semiconductors.

The birth of semiconductors can be traced back to the invention of the DC-AC converter in the year 1874. After many years, 2 researchers named Brattain and Bardeen at the Bell Laboratories made the point-contact transistor in the year 1947. With the advent of the industrial revolution, the industry gained strength and made its prominence. In today’s world semiconductor industry holds immense importance for global GDP. Companies such as Apple, Samsung Electronics, and Hon Hai Precision Ind, are making an enormous profit and leaving a trail of legacy products. In a recent research conducted by Research Nester, various statistics were found:

  • Automated vehicles can have up to almost 3490 semiconductors chips attached.
  • Prominently, almost 70.2% of the growth in semiconductors is projected to be driven by 3 industries which are-
  1. PC industry (workstations, desktops, and workstations)
  2. Electric vehicles (EVs)
  3. 5G communications
  • It has been found that the semiconductor industry sold almost 1.16 trillion semiconductor chips.

Furthermore, in this blog, we will discuss some of the macro factors responsible for shaping the semiconductors industry. Some of the trends which are driving the market growth are written as follows:

  • Rising Demand for Connected Devices

The example of connected devices include smart speakers, smart TVs, toys, smart appliances, and wearables. According to a study, Research Nester found that there are approximately 15.1 billion connected IoT devices available all across the world. These connected devices are powered by semiconductor chips. These chips are constantly evolving in response to the rising standards of appliances.

  • Advent of 5G technology 

The semiconductor manufacturers are playing an extremely critical role at this time. In fact, semiconductors have always played a prominent role in accelerating technological advancements. However, with the rising speed of innovation owing to the fourth Industrial Revolution, there has been incredible innovation within the semiconductor manufacturing space.

The advent of 5G and IoT devices is helpful in proliferating the market, so the demand for accurate and high-performance semiconductor chips. The semiconductor chip manufacturers are gearing up to fulfill the demands of the flourishing market. The various domains such as cloud data centers, and 5G, rely heavily on advanced semiconductors.

  • Autonomous vehicles

The usage of semiconductors for the automation of vehicles, connectivity, electrification, and the purpose of infotainment are in great demand. Demand for indium gallium arsenide and indium phosphate is expected to be utilized for making various kinds of chips.

The role of semiconductors in artificial intelligence-driven autonomous vehicles is a topic of rising importance. The automotive industry hugely depends on the growth of semiconductors, which are becoming the main components of vehicles.

The growth of semiconductors in the fabrication of autonomous vehicles cannot be understated. These sensors are useful in generating humongous amounts of data which is required to be processed in real time. Moreover, the role of semiconductors in autonomous vehicles extends beyond the processing and sensors. According to research conducted by Research Nester, usually, the distribution of the semiconductor in vehicles is written as follows: -

Car Body Parts

Percentage Composition

Microcontrollers

34.2%

Electrification

29.3%

Infotainment

17.4%

Autonomous sensors & controllers

5.8%

Other

15.6%

  • Prominent role of semiconductors in telecommunication

The semiconductor chips are being used widely in telecommunication industry for making routers, phones, and satellites. Semiconductors are the backbone of the digital communication infrastructure that enables data transmission across the vast distance. These semiconductors also have played a remarkable role in the evolution of wireless communication. Furthermore, the evolution of 4G and 5G technologies have also dependent on semiconductors industry. Semiconductors enable communication devices to transmit and process large amounts of data and facilitate high speed internet access.

  • In a nutshell,

The role of semiconductors in the various industries is set to grow even further with the introduction of new technologies. Semiconductors have played a pivotal role in the modern industries. It is crucial to understand and acknowledge the opportunities in the domain. The semiconductor industry is expected to ensure the continued growth. The market research reports provide a detailed analysis of the market intricacies such as regional analysis, market challenges, etc.


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swara-keni
Swara Keni

Head- Global Business Development

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