An In-Depth Analysis of the Impact of Technological Advancements and Product Launches on the SEMI Domain in Q2 2024

The semiconductor and electronics (SEMI) domain has been one of the most dynamic sectors of the global economy. In the past few decades, the landscape has witnessed the interplay of several factors which have influenced it in one way or another. The rising demand for different consumer electronic goods is one major element in the growth of the domain. Moreover, the emergence of advanced technologies like IoT, robotics, and AI have also contributed to the rise of the sector. Additionally, the initiatives undertaken by several countries to make global supply chains more resilient and transparent have created favorable conditions for the growth of the sector.

Along with this, the rise of the SEMI domain in Q2 2024 is attributed to the innovative products and services launched by several leading companies which have, in turn, increased investments in the field of semiconductor manufacturing. Moreover, mutually beneficial alliances like mergers, partnerships, and acquisitions have strengthened the position of the landscape during the period. To help businesses understand the evolving nature of the sector, Allied Market Research has compiled a detailed study of the performance of the semiconductor and electronics sector.

Mergers and acquisitions proving to be beneficial for the growth of the sector in Q2 2024

In May 2024, Infosys, a major IT consulting services provider, announced the acquisition of InSemi, a semiconductor designing company. Infosys, for the past few years, has been regularly investing in engineering and R&D activities and the acquisition is in line with the company’s policy and commitment to strengthen the semiconductor manufacturing ecosystem across the world. Furthermore, the move is expected to widen the customer base of Infosys in the coming period.

In June 2024, Nokia, a multinational telecommunications corporation, released a press statement announcing that it had acquired Infinera, a key telecommunications equipment manufacturer. The agreement between the two companies will help Nokia consolidate its position in the optical transceiver industry in the near future. Also, the acquisition is anticipated to aid the company in diversifying its portfolio by enhancing its in-house production capabilities.

Mutually beneficial partnerships and innovations creating new opportunities for the growth of the domain

Several multinational giants as well as new entrants in the SEMI domain have signed partnership agreements with their peers to augment their growth rate in the sector. In April 2024, Microchip Technology, a leading microcontroller and Flash IP solutions developer, announced that it had entered into a partnership with TSMC, the largest semiconductor foundry in the world. As part of the collaboration, a specialized 40nm semiconduction production facility will be established at Japan Advanced Semiconductor Manufacturing, Inc. (JASM). Additionally, both companies are anticipated to make investments to improve the long-term innovation capabilities of the manufacturing facility and address the demands of various end-use industries.

In April 2024, Tesla, a multinational automobile manufacturer based in the US, released a press statement announcing a partnership with Tata Electronics, a precision component manufacturing company, for procurement of semiconductor devices. The collaboration agreement solidifies Tata Electronics' position as the leader of the semiconductor industry in India. The partnership is part of a grand strategy by both companies to establish a robust global supply chain for semiconductor manufacturing and delivery.

In June 2024, Samsung, an electronics device manufacturing company, unveiled its latest foundry innovations at the Samsung Foundry Forum (SFF). The Samsung Foundry Forum (SFF) is an annual event hosted by the company to share its innovations and vision with other industry participants. The theme of the 2024 edition was “Empowering the AI Revolution”. Two new process nodes- SF2Z and SF4U- were launched by Samsung in the event which are expected to play a major role in the development of futuristic AI-powered solutions.

Novel product and service launches generating new revenue streams for the sector in Q2 2024

As part of the plan to increase their revenue share in the semiconductor and electronics domain, many businesses have launched ingenious products and services in Q2 2024. In April 2024, Galaxy Semiconductor, a software developer for semiconductor test data analysis, released a press statement announcing the launch of its novel Hyperdrive Predictive Quality System for semiconductor material suppliers. The solution has been designed to predict equipment issues and failures in semiconductor fabrication materials in advance, thereby reducing downtime and improving the efficiency of the device.

Again in May 2024, Apple, one of the largest technology companies in the world, unveiled its flagship product, i.e., iPad Pro, with advanced M4 semiconductor and high-tech display. The company has released two variants- a 13-inch model and an 11-inch model- with OLED displays and a powerful Neural engine. Along with this, all-new accessories like Apple Pencil Pro and Magic Keyboard were also launched. These new products are predicted to widen Apple’s customer base in the near future.

Technological advancements helping the sector accelerate its growth rate in Q2 2024

Innovation and technological advancements have been central to the growth of the semiconductor and electronics domain in the second quarter of 2024. In April 2024, Qualcomm, a major semiconductor manufacturer, dissued a press statement announcing that the company had made a breakthrough in WiFi technology and alsoand launched two IoT-powered solutions viz., Qualcomm® RB3 Gen 2 Platform and Qualcomm® QCC730 Wi-Fi solution. Qualcomm had taken part in the Embedded World Conference wherein the press release was issued.

In June 2024, Nvidia, a leading technology company headquartered in California, issuedpresented a press release announcing that the company would be rolling out its most advanced AI-powered chip platform Rubin by the end of 2026. The Rubin platform is set to supersede the Blackwell which is considered to be the most powerful semiconductor chip globally. Nvidia has been a prominent leader in artificial intelligence and has pioneered studies for its integration into semiconductor chips. The launch of the Rubin platform is expected to help the company establish itself as a dominant force in the artificial intelligence chip industry.

Also, in June 2024, AMD, a key player in the semiconductor manufacturing landscape, announced the launch of a high-end AI chip viz., MI325X accelerator. In the past few years, the company has been facing tough competition from Nvidia which currently controls 80% of the revenue share in the field of AI semiconductor design. The launch of MI325X accelerator is expected to help AMD in posing a serious challenge to the dominance of Nvidia in the next few years.

In May 2024, Microsoft, the multinational IT giant, announced its largest-ever investment in France for the adoption of AI-based tools and skilling of the workforce to align with the evolving nature of the sector. The investment will help companies in France improve their competitiveness in cloud computing technologies and ready themselves for the upcoming AI revolution. At the same time, the move is expected to expand Microsoft’s scope of operations across the globe.

In June 2024, TSMC, a leading semiconductor manufacturer in Taiwan, issuedconducted a press release declaring that it had started the production of Intel’s Core Ultra 200V series semiconductor, popularly called the Lunar Lake processor. The development will help TSMC to cater to a wider customer base and increase its footprint in the processor industry in the coming period.

Evaluating the growth story of the semiconductor and electronics domain in Q2 2024

The rise of the semiconductor and electronics sector in the second quarter of 2024 is attributed to the increasing demand for different consumer electronic devices across the globe. Along with this, the integration of emerging technologies like AI, IoT, and machine learning has also been an important factor in the growth of the domain. Furthermore, partnerships like those between Tesla and Tata Electronics have created new avenues of investment in the landscape. Finally, innovative product launches by multinational semiconductor manufacturing giants like Nvidia, AMD, and Intel have helped the domain reach new heights in Q2 2024.

Stay in touch our research analysts to understand the evolving nature of the SEMI domain!