Major Technological Trends in the Semiconductor Industry

Despite the global supply chain disruptions, semiconductor sales are expected to reach more than USD 476 billion in 2022. The recovery from the pandemic, together with the growing usage of AI, IoT, and 5G technologies, bodes well for semiconductor companies.

Fremont, CA: The COVID-19 pandemic has had a major impact on every business vertical on the planet. However, the rebound of the semiconductor industry even after the effects of the pandemic is a positive indicator. Despite the global supply chain disruptions, semiconductor sales are expected to reach more than USD 476 billion in 2022. The recovery from the pandemic, together with the growing usage of AI, IoT, and 5G technologies, bodes well for semiconductor companies. Moreover, hardware is the driving force behind Industry 4.0. As a result, the semiconductor industry has become a key component of digital transformation.

Like any other business, the semiconductor industry also leverages AI for its advancement. AI-driven technologies such as voice and facial recognition, computer vision, and Natural Language Processing (NLP) require high processing speeds and specialized components.

 As these technologies become more common, the demand for AI processors is also increasing. AI is enabling semiconductor companies’ capture up to 50 percent of the entire value from the technological stack. An 18 percent increase in AI-related semiconductors is also expected going forward.

The IoT is another technology that is gaining pace. Smart cities initiatives, supply chain management, healthcare, farming and manufacturing, and consumer electronics are just a few of the industries that have embraced IoT. The growing popularity of this technology has prompted a number of technology businesses to enter the IoT ecosystem. There were an estimated 11.7 billion IoT devices on the planet last year. By 2025, it is predicted to reach 30 billion. According to one research, IoT semiconductor component penetration is predicted to increase by 12 percent by 2023.

Furthermore, 5G is one of the technologies expected to dominate the industry. 5G offers speeds up to 100 times faster than the existing bandwidths. Since the pandemic has made remote working and online schooling the new normal, there is a requirement for better infrastructure and bandwidth in order to run smoothly. This is something that 5G can help with. Telecom operators are again preparing for deployment after the implementation of this technology. As a result, the semiconductor business will soon be booming.

By adopting the emerging technologies, the semiconductor industry will be advancing to the next level. Since these technologies are continuing to bring better advancement to the industry, more innovations and developments can be expected in the near future.