GlobalFoundries’ call for semiconductor diversification

GlobalFoundries CEO, Thomas Caulfield, observed that the current reality around the world is “…creating a lot of visibility and recognition for our industry and the vital role, semiconductors play in today’s world.”

He was addressing an online audience at Semicon Southeast Asia 2021, an annual exposition for the region’s electronic industry.

Thomas also opined that the world is experiencing and living in a chip shortage that actually began since the first smartphone was invented, in 2008.

Table of contents

• Three megatrends
• Feature-rich silicon
• Ramping up capacity

?He said, “Over the next 15 years our industry, fundamentally evolved from a primarily a compute-centric industry (to one that) experiences a pervasive deployment of semiconductors and enables secure connected intelligence in a range of devices and applications.”

Thomas was referring to the mobile phone which today, is used for much more than just communication. It streams our music, takes pictures, tracks workouts, helps us check into flights, pay groceries, change the temperature, remote start our car, and more.

Thomas added, “It’s the first thing most of us pick up when we wake up in the morning. One thing we make sure we have when we leave the house.?It’s the last thing we look at before we go to sleep.?“

He believed that the industry from raw materials suppliers to equipment makers must collectively partner to meet this accelerating growth. Above that, the industry must also be prepared to rethink strategies, product portfolios, R&D and the supply chain.

Three megatrends

He continued to observe that the mobile phone has become?become the catalyst to the pervasive deployment, and use of semiconductors in everything.

The acceleration of a digital revolution in turn gave rise to three megatrends which the CEO identified as 5G, Internet of Things, and edge devices.

The world is experiencing and living in a chip shortage that actually began since the first smartphone was invented, in 2008.

“5G is enabling the next generation of applications with potential for more than 10 times higher data throughput and five to ten times lower latency.”

“Global Foundries (GF) is at the heart of 5G rollout around the world, and I would challenge you to find a 5G mobile phone that isn’t powered by a module with GF feature-rich technology.”

Also noteworthy is the explosion of (edge) devices which is projected to grow to 25 billion before 2030.

“No sector will be exempt from the digital revolution, and it may be better stated no?sector will survive without participating in the acceleration from the electrification of automobiles to digital transformation of healthcare, education, or even something that we take for granted today – home appliances,” Thomas said.

Feature-rich silicon

Thomas pointed out a general misperception that the convenience mobile phones enable are based upon legacy technology.

“There is an important nuance here, that so much of our industry is missing, and it’s at the crux of this chip shortage that everyone is struggling with,” he said.

Perhaps too much focus has been on chasing Moore’s law (smaller and faster chips) just to make a single-type of digital device to work. At the same time this (device) only addresses 30-percent of our market.

There is an important nuance here, that so much of our industry is missing, and it’s at the crux of this chip shortage that everyone is struggling with.

The point is that chips can be found in a diverse range of devices and this requires diversification of semiconductors with different chip functions.

And a “recent acceleration of geopolitical awareness” has shown up just how critical semiconductors manufacturing is, particularly with regards to supply chain security, sovereign security, and economic security.

This move to feature-rich (and diverse) semiconductor-based devices is everywhere, with no end?in sight. The only limitations are our imagination, and our ability to build our manufacturing capacity, Thomas opined.

Ramping up capacity

Since 2008 also, there has been tremendous fundamental consolidation that resulted in just five main players in the contract chipmaking business. A majority of them are based in Asia.

The world economy needs our industry to catch up to the present demand and double capacity in the next eight to 10 years!

And a “recent acceleration of geopolitical awareness” has shown up just how critical semiconductors manufacturing is, particularly with regards to supply chain security, sovereign security, and economic security.

The CEO of the U.S.’ largest contract chipmaker said, this resulted in all regions of the world vying for semiconductor manufacturers.

“The world economy needs our industry to catch up to the present demand and double capacity in the next eight to 10 years!”

He believed that the industry from raw materials suppliers to equipment makers must collectively partner to meet this accelerating growth. Above that, the industry must also be prepared to rethink strategies, the product portfolios, R&D and the supply chain.

Ultimately, this demands the industry “… to shed what decades of chasing Moore’s Law has trained it to ignore.”

And that is to focus beyond being the fastest and the smallest transistors, to becoming feature-rich, he concluded.

This article was first published here: https://www.enterpriseitnews.com.my/globalfoundries-call-for-semiconductor-diversification/