Semiconductor industry trends: A brief introduction to the future difficulties and solutions faced by semiconductor enterprises

The future of semiconductors is constantly evolving and current trends point to a higher level of innovation and competition. By 2023, increased demand, geopolitical conflicts, factory closures, and inflation have led to semiconductor shortages and reduced production. Subsequently, barcode scanning solutions the 2022 semiconductor industry Confidence Index released by KPMG and the Global Semiconductor Alliance dropped to 56 u002F100, down 18 percentage points from the previous year's all-time high.

However, the volatility is short-lived. Not only have we seen the end of the chip shortage, precision automation systems but more than a quarter of executives surveyed by KPMG expect an impending chip glut. Increasing production means companies will need to adapt to new technologies and processes.

This article will discuss the future of semiconductors, including trends, which industries will be most impacted, and how your business can succeed.

What does the future hold for the semiconductor technology industry?

Many semiconductor companies build market share by integrating multiple functions into a single chip, semiconductor manufacturing solutions as they have done recently. The idea is that chips only need to be designed once and can be used in a variety of scenarios.

Design based on small chip.

Intellectual property reuse remains a major concern for the semiconductor industry going forward - most industry leaders cited it as a top concern in the 2023 Perforce Semiconductor survey - but design has now shifted to being customized for market growth. The future of semiconductor design is not to design individual chips, but to rely on small chips. These are specialized modular chips that can be combined to create complex system-on-chip (SoC).

These microchip-based designs consist of smaller, customizable building blocks. This approach can lead to lighter hardware, lower consumer costs, and greater sustainability. Some IP vendors are linking microchips to the concept of "IP softcore," which is IP that companies configure for their specific needs. The MIT Technology Review also sees this shift (also known as "multi-chip system technology") as the future of the semiconductor industry. Although microchip-based designs are becoming more popular, it may be another five years or so before they are widespread enough to become an industry standard.

globalize

In addition to future shifts in semiconductor design, the industry will also become more economically global. When KPMG asked semiconductor executives if their company management had plans to expand global online recruitment and work with multiple distributed teams across multiple companies, 71% said yes.

Is the semiconductor industry growing?

The semiconductor industry is growing rapidly. With the advent of products such as self-driving cars, as well as products that combine artificial intelligence and machine learning, the need for semiconductors has become even more urgent.

McKinsey predicts that semiconductors will become a trillion-dollar industry by 2030.

Although revenue from the semiconductor industry is expected to decline slightly this year, the market is expected to grow at an annual rate of 18% by the end of 2024.

Major trends in the semiconductor industry in the future

A number of trends are underway to reshape the future of semiconductors, including the expansion of new technologies and markets, as well as novel uses of existing information technology by some companies, such as the use of small chip 2.5D packages at mature process nodes.

Take advantage of new technology

The three key technology trends driving the future of the semiconductor industry are:

Open source hardware is disrupting the market and changing the way companies think about design;

The Internet of Things increases the demand for low-cost semiconductors;

5G increases the demand for high-performance computing devices.

Broaden the market

The scope of application research in semiconductors has been significantly expanded. From smart phones to self-driving car sensors, semiconductors are now powering everything. The results of a 2023 survey analysis by the MIT Career School Information Technology Management Review indicate that customers expect and demand more personalization from students. Companies are also responding to the nation's social needs, with more than half of executives surveyed saying they plan to expand their business 'range of "smart" products and services.