Table Of Contents
- The semiconductor and electronics domain has been one of the most vibrant sectors in the global economy. Many technology companies have entered the landscape and formulated strategies to gain a competitive advantage over their peers. The rising demand for different consumer electronic gadgets and appliances including smartphones, laptops, TVs, tablets, microwave ovens, refrigerators, etc., has played a major role in the growth of the industry at large. While the sector has been facing some problems due to geopolitical tensions and disruptions in supply chains, the emergence of advanced technologies has helped semiconductor manufacturing companies to bounce back in the post-pandemic period. Recently, Allied Market Research has come up with a detailed study that covers the top 5 trends and advancements in the SEMI domain positively impacting the sector in Q3 2024. The main intent behind this is to aid businesses in making the right investment decisions.
- Edge computing refers to a decentralized processing and computing framework that brings application programs closer to data sources and local servers. Multinational companies have started shifting to this new technology to reduce network congestion and shorten response times. Furthermore, the costs associated with operational power are also brought down by this new method of data processing. The growing popularity of edge computing has compelled companies in the sector to develop integrated circuits that are compatible with the new field of processing. These edge intelligent computing chips are widely used in different applications, including industrial, automotive manufacturing, robotics, and industrial Internet. The rising proliferation of IoT devices has contributed to the expansion of the edge intelligent computing chip industry. Moreover, the increasing complexity of AI and machine learning algorithms has further broadened the scope of the sector.
- Quantum computing chips, which serve as processors for quantum computing, contain qubits as opposed to normal bits in a conventional semiconductor chip. In the past few years, there has been a growing shift toward miniaturization of semiconductors resulting in an increasing preference for nanometer fabrication processes. Miniaturization of semiconductor components helps in installing more transistors on a chip, thereby improving its computing power. Furthermore, advancements in material sciences have generated new investment opportunities in the quantum computing chip industry. Studies have shown that as compared to silicon, other variants like silicon carbide and graphene have many superior properties that aid in the designing of advanced integrated circuits. Moreover, as issues with flat chip designs have increased, 3D stacking has come into play, boosting industry growth.
- With growing awareness of the importance of privacy and data security, many technology companies are focusing on developing techniques to protect semiconductors from external threats and hardware malfunctions. The designing of tamper-resistant chips and hardware encryption capabilities has helped in establishing an overarching semiconductor security framework. Furthermore, over the years, different types of data protection architectures have been developed to ensure the security of applications, cloud services, and network systems independently. Multinational giants such as McAfee, Cisco Systems, IBM, Palo Alto Networks, Akamai Technologies, and Check Point Software have been at the forefront of introducing encryption and semiconductor security technologies to maintain the integrity and confidentiality of the data. As per many networking and computing experts, the importance of privacy is expected to surge significantly in the near future due to the increasing proliferation of digital services and interconnected devices.
- In the past few years, the demand for EVs and hybrid automobiles has surged drastically. These vehicles rely heavily on electronic components like sensors, transistors, microcontrollers, and microprocessors. Naturally, the increasing adoption of high-end vehicles has significantly boosted the demand for semiconductors in the automotive industry. Furthermore, the rising demand for comfort, convenience, and safety in automobiles has led to innovations in integrated circuits and semiconductors. The advent of advanced driver assistance systems (ADAS) and infotainment solutions has further expanded the scope of automotive semiconductors considerably. Next-generation computing technologies, AI, machine learning, and natural language processing techniques have accelerated the growth rate of the landscape in the third quarter of 2024. The role of automotive semiconductors is expected to increase in the coming period with the emergence and adoption of connected vehicles.
- The AMR study highlights that the semiconductor and electronics sector has been on the rise for the past few decades. The increasing demand for smart devices, the advent of innovative technologies such as AI and ML, and the competitive spirit among the industry participants have all contributed to the overall expansion of the landscape. In the third quarter of 2024, the expansion of the sector has been much more pronounced on account of the shift toward edge and quantum computing. The development of AI-specific chips and emphasis on semiconductor security has further augmented the growth rate of the domain.
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Sonia Mutreja
Koyel Ghosh
Top 5 Trends in the SEMI Domain for Q3 2024: Embracing the Transformative Innovations in the Sector
The semiconductor and electronics domain has been one of the most vibrant sectors in the global economy. Many technology companies have entered the landscape and formulated strategies to gain a competitive advantage over their peers. The rising demand for different consumer electronic gadgets and appliances including smartphones, laptops, TVs, tablets, microwave ovens, refrigerators, etc., has played a major role in the growth of the industry at large. While the sector has been facing some problems due to geopolitical tensions and disruptions in supply chains, the emergence of advanced technologies has helped semiconductor manufacturing companies to bounce back in the post-pandemic period. Recently, Allied Market Research has come up with a detailed study that covers the top 5 trends and advancements in the SEMI domain positively impacting the sector in Q3 2024. The main intent behind this is to aid businesses in making the right investment decisions.
AI-specific chips: A novel technology laying the foundation for futuristic innovations
The emergence of artificial intelligence has led to the development of advanced AI chips which are specialized integrated circuits specifically designed for execution of fast-paced computing tasks. These ICs have become a vital component of devices and gadgets that perform algorithmic calculations. Furthermore, AI-powered chips are used in various applications including natural language processing, robotics, network security, and computer vision technologies. Many leading companies such as NXP Semiconductors, Qualcomm Technologies Inc., TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED, etc., have launched state-of-the-art semiconductor devices that are capable of executing AI tasks. In the past few years, end-use industries like BFSI, healthcare, retail, IT and telecom, automotive and transportation, etc., have adopted equipment and machines installed with AI-specific chips and graphics processing units. The widespread applicability of these high-tech ICs has led to a huge rise in the artificial intelligence chip industry in Q3 2024.
Increased focus on edge computing creating new dimensions in the sector
Edge computing refers to a decentralized processing and computing framework that brings application programs closer to data sources and local servers. Multinational companies have started shifting to this new technology to reduce network congestion and shorten response times. Furthermore, the costs associated with operational power are also brought down by this new method of data processing. The growing popularity of edge computing has compelled companies in the sector to develop integrated circuits that are compatible with the new field of processing. These edge intelligent computing chips are widely used in different applications, including industrial, automotive manufacturing, robotics, and industrial Internet. The rising proliferation of IoT devices has contributed to the expansion of the edge intelligent computing chip industry. Moreover, the increasing complexity of AI and machine learning algorithms has further broadened the scope of the sector.
Advancements in quantum sciences and computing reshaping the domain
Quantum computing chips, which serve as processors for quantum computing, contain qubits as opposed to normal bits in a conventional semiconductor chip. In the past few years, there has been a growing shift toward miniaturization of semiconductors resulting in an increasing preference for nanometer fabrication processes. Miniaturization of semiconductor components helps in installing more transistors on a chip, thereby improving its computing power. Furthermore, advancements in material sciences have generated new investment opportunities in the quantum computing chip industry. Studies have shown that as compared to silicon, other variants like silicon carbide and graphene have many superior properties that aid in the designing of advanced integrated circuits. Moreover, as issues with flat chip designs have increased, 3D stacking has come into play, boosting industry growth.
The increasing emphasis on semiconductor security creating favorable conditions for the growth of the landscape
With growing awareness of the importance of privacy and data security, many technology companies are focusing on developing techniques to protect semiconductors from external threats and hardware malfunctions. The designing of tamper-resistant chips and hardware encryption capabilities has helped in establishing an overarching semiconductor security framework. Furthermore, over the years, different types of data protection architectures have been developed to ensure the security of applications, cloud services, and network systems independently. Multinational giants such as McAfee, Cisco Systems, IBM, Palo Alto Networks, Akamai Technologies, and Check Point Software have been at the forefront of introducing encryption and semiconductor security technologies to maintain the integrity and confidentiality of the data. As per many networking and computing experts, the importance of privacy is expected to surge significantly in the near future due to the increasing proliferation of digital services and interconnected devices.
Innovations in the field of automotive semiconductors opening new avenues of growth in the domain
In the past few years, the demand for EVs and hybrid automobiles has surged drastically. These vehicles rely heavily on electronic components like sensors, transistors, microcontrollers, and microprocessors. Naturally, the increasing adoption of high-end vehicles has significantly boosted the demand for semiconductors in the automotive industry. Furthermore, the rising demand for comfort, convenience, and safety in automobiles has led to innovations in integrated circuits and semiconductors. The advent of advanced driver assistance systems (ADAS) and infotainment solutions has further expanded the scope of automotive semiconductors considerably. Next-generation computing technologies, AI, machine learning, and natural language processing techniques have accelerated the growth rate of the landscape in the third quarter of 2024. The role of automotive semiconductors is expected to increase in the coming period with the emergence and adoption of connected vehicles.
Summarizing the factors influencing the growth of the SEMI domain in Q3 2024
