Emerging Trends in Semiconductor Industry to Watch in 2021
The global semiconductor industry has been evolving and growing steadily. This growth has largely been driven by 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 such as defense, 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 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 semiconductors from damage, was estimated at $28.13 billion in 2019.
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 creation of technological tools.
Apart from electronics, they help in working of trains, internet, ATMs, and various other forms of communication equipment. They are even used in medical system from filling of prescriptions to completion of lab work. Practically, these small technological wonders support to make human lives more comfortable.
Top 5 Trends in Semiconductor Industry
As per the importance of semiconductors mentioned earlier in the article, it would not be incorrect to state that their vital functionality has the power to contribute to improvement of many superior-tech tools across every sector. Here are the top 5 semiconductor industry trends that are expected to shape the future:
? 5G Connectivity
After gaining prominence, the world of 5G technology is expected to create a huge impact on the global semiconductor industry. 5G chipset allows faster flow and processing of information. These ambitious integrated chipsets would be able to transfer data at a rate 10 times faster than previous 4G. In this new ecosystem, semiconductors are expected to be accomplishing new specifications. Moreover, producers would have to improve product potentials of storage, mobile devices, and servers.
? Internet of Things (IoT)
Industrial applications of the Internet of Things (IoT) are set to stir the global semiconductor industry. It is expected to offer a myriad of opportunities to semiconductor companies. Moreover, owing to its capabilities, IoT, along with domains such as silicon photonics, has come under the purview of heavy research. As more IoT products enter the market, the demand for semiconductor chips is expected to witness a rise. Advanced IoT devices would also possess their own analytics and microcontrollers, making them less exposed. From modern automation systems to connected appliances, semiconductor-integrated IoTs are anticipated to dominate their presence everywhere.
? Autonomous Cars
In the automotive industry, self-driving vehicles are the next big thing that are anticipated to function with assistance of semiconductor chips. Integrated semiconductor chips in next-generation cars would perform different collaborative operations. These self-sustaining vehicles with better electronic solutions would be supported with automotive semiconductors for improved connectivity, enhanced sensors, battery performance in EVs, and automation. Automotive artificial intelligence software is expected to escalate operational efficiencies of self-driving and semi-autonomous vehicles.
? Artificial Intelligence (AI)
In recent years, AI technology has seen mass adoption, paving way for enterprises to strategize AI-integrated semiconductor chips. This is expected to result in several advantages across different industries such as operational cost reduction, better performance, increase in manufacturing speed, enhanced efficiency, and response time. The demand for AI-based applications and equipment would directly exert influence on growth opportunities for semiconductor companies. Furthermore, massive growth in research and development, increase in use of autonomous robots in various industry verticals, and high-tech product launches are expected to create new market-opportunities, which, in turn, would propel growth of the artificial intelligence (AI) chip market.
? Domination of China in the Semiconductor Industry
In 2019, revenue of the semiconductor industry of China was up by 25% to approximately $110 billion, from $ 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 would maintain this position in the future. Chinese companies are witnessing high sales as they are transitioning from low-cost production to concentrating on 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 is anticipated to be tough to challenge in the upcoming years.
What does the future hold?
Transparent electronics are gaining momentum in the global market at a significant pace. For instance, Chinese railways have incorporated windows with interactive, light-emitting color displays in their newly deployed train. The rapidly expanding business of transparent electronics include transparent electrics and optronics. The German government is focusing toward developing headlamp glass that steers to radar beam of driverless vehicles. Germans are already offering transparent heater laminates to be installed inside fitments of electric vehicles, saving weight and power.
Wearable sensors are innovations with lucrative growth opportunities in the consumer electronics market. Increase in demand for wearable electronics in the healthcare domain is paving way for wearable sensors. For instance, fitness trackers, fall detectors, and health monitoring devices are increasingly being used around the globe. Successful adoption of these devices majorly depends upon development of wearable sensors and their commercial success.
Electric vehicles are gradually gaining traction, which is also leading toward its mass production. With rise in concerns toward optimization of natural resources, electric vehicles are gaining tractions due to their environment friendliness. For instance, in September 2019, Ford Motor Co. launched eight electric vehicles in Europe. Ford’s launches included electric variants of the Kuga,Puma SUVs, and the Mondeo sedan. The automaker also plans to launch nine other electric vehicles by 2024 in Europe, including a new Mustang-inspired electric sports utility vehicle.
Connectivity and data transmission are expected to play a key role in the semiconductor industry. Moreover, owing to the emergence of automation, connectivity is one of the pivot roles in this industry. For instance, data transmission and processing in automotive can be used to monitor traffic, parking, detection of objects or pedestrian, and engine control and monitoring. Connectivity and data transmission is expected to have the ability to share details related to factors such as driving conditions and environment.
Augmented reality (AR) intensifies user experience of the natural world through sounds, graphics, and touch feedback. The Pokémon Go, a popular 2016 mobile game, was an example of augmented reality. On the other hand, Virtual Reality (VR) is more immersive and absorbs users in a new environment, shutting out the real physical world. VR is now moving beyond gaming sphere and is being used for training purposes. Both AR and VR are expanding their presence in the region of entertainment, marketing, training, and education. Major players such as Oculus, Samsung, Sony, Facebook, and Google are working on big ambitious projects. The United States army is experimenting with AR technology, which would be used in war and combat services to distinguish between enemies and friendly troops and also to improve night vision. This technology is still under development phase and is expected to create lucrative opportunities for the AR market in the years to come.
5G speed has outpaced performance and speed of previous networks. It is set to give leverage to businesses to embrace and adapt to latest technologies. 5th Generation digital cellular network promises more reliable connectivity, faster downloads, smoother streaming, higher-quality voice, and video calls. Increase in use of digital gadgets and smart-phones are expected to boost the 5G market growth. Technological advancements and infrastructure developments would further inflate the 5G technology market globally.
To Sum Up…
As years are passing by, tracking evolution of technology is becoming harder. While artificial intelligence, 5G, IoT, and autonomous cars are all in the initial phase, most companies are just starting out for their execution and would have major implications on the semiconductor industry in the coming years. Some of the top semiconductor companies in the world such as Micron Technology, Intel Corporation, UTAC Group, Carsem, Powertech Technology, Qualcomm Technologies, and Fujitsu Ltd., are swiftly innovating and adapting as they recognize numerous benefits these technologies are capable to offer. With perpetual technological advancements, the global semiconductor industry offers a great opportunities and is set to witness a more promising future.