How IoT is transforming the Semiconductor Industry in Australia

The Internet of Things (IoT) is a network of interconnected devices that can collect, exchange, and act on data. IoT devices require semiconductors to function, such as sensors, connectivity chipsets, memory, microcontrollers, and integrated circuits. The IoT is driving an explosion of micro-controllers, sensors, and memory chips, which will greatly benefit the semiconductor industry. This part of the IoT market will experience “tremendous” growth in the coming years, with processing, sensing, and communications exploding at unprecedented rates over time.

The IoT represents a new source of growth for the semiconductor industry, as the demand for IoT devices and applications is increasing in various sectors, such as retail, health, bioscience, consumer, and industrial. The penetration of semiconductor components classified as IoT is expected to grow from 7% in 2019 to 12% by 2025. Four key components are driving this IoT semiconductor growth: MCUs, connectivity chipsets, AI chipsets, and security chipsets and modules.

The IoT also enables the semiconductor industry to improve its own processes and operations, such as quality control, inventory management, device testing, packaging, delivery, and maintenance. IoT can help the industry optimize its resources, reduce costs, enhance efficiency, and foster innovation.

Australia is well-positioned to take advantage of the IoT opportunity in the semiconductor industry, as it has a strong research and innovation ecosystem, a skilled workforce, and a strategic location in the Asia-Pacific region. Australia has a number of companies and organisations participating across the semiconductor value chain, from design and development to fabrication and packaging. One of them is The Australian National Fabrication Facility (ANFF) , a network of eight nodes across Australia that provides access to state-of-the-art fabrication and characterisation equipment and expertise for researchers and industry partners.

However, Australia also faces some challenges in growing its semiconductor industry, such as:

• Lack of scale and critical mass: Australia's semiconductor sector is relatively small and fragmented, compared to other countries that have established and dominant players. Australia needs to increase its investment, collaboration, and coordination in the sector to achieve economies of scale and global competitiveness.
• Lack of standards and security: The IoT is a complex and diverse domain, which requires interoperability and compatibility among different devices, platforms, and protocols. The IoT also poses significant security and privacy risks, as it involves the collection and transmission of sensitive data. Australia needs to develop and adopt common standards and best practices for IoT, as well as implement robust security measures and regulations.
• Lack of skills and talent: The IoT requires a multidisciplinary and cross-functional approach, which demands a range of skills and expertise, such as hardware design, software development, data analytics, systems integration, and business acumen. Australia needs to attract, retain, and develop talent in the sector, as well as foster a culture of innovation and entrepreneurship.

To overcome these challenges and realise the full potential of the IoT in the semiconductor industry, Australia needs to adopt a strategic and holistic approach, which involves:

• Leveraging its strengths and niches: Australia has a competitive edge in some areas of the semiconductor value chain, such as design and development, as well as in some emerging technologies, such as quantum computing and GaN. Australia should focus on these areas and niches, where it can offer differentiated and value-added solutions for the IoT market.
• Building partnerships and ecosystems: Australia should foster collaboration and cooperation among different stakeholders in the sector, such as academia, industry, government, and investors. Australia should also seek to establish partnerships and alliances with other countries and regions, especially in the Asia-Pacific, where the IoT demand and supply are growing rapidly.
• Supporting innovation and growth: Australia should provide support and incentives for innovation and growth in the sector, such as funding, tax breaks, subsidies, grants, and loans. Australia should also create a conducive and enabling environment for the sector, such as infrastructure, regulation, education, and awareness.

The IoT is transforming the semiconductor industry, creating new opportunities and challenges for Australia. By adopting a strategic and holistic approach, Australia can leverage its strengths and niches, build partnerships and ecosystems, and support innovation and growth, to become a key player and beneficiary in the IoT semiconductor market.

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Source:

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