The Foreseeable Future of Semiconductor Industry

The demand for semiconductors has never been higher, and it is likely to rise more as new technologies such as 5G, AI, and the internet of things (IoT) emerge.”

Fremont, CA: The semiconductor industry is in the depth of one of its most crucial historical periods. While the global ripple effects of the chip shortage are undeniably still present, several other significant factors are dramatically altering the landscape of this business.

Chip Shortage

 The most significant impact of lower chip supply has been seen by automotive and consumer technology firms, compelling them to delay product introductions, resulting in predicted revenue loss. As chip demand continues to rise, supply chains may remain limited for the foreseeable future. That means that semiconductor companies should focus on developing more resilient supply chains and sparingly employ just-in-time approaches. 

Battle of the Chip Architectures  

For more than 50 years, the x86 architecture has dominated the microprocessor industry. However, with the increased popularity of Arm, this is changing. While Arm's architecture was developed in response to a demand for low-power chips for vertical applications, they are now emerging as a low-power answer and high-performance contender, rivalling the established x86 companies. As a result, when hyperscale’s like Google and AWS wanted to develop their chips, they chose the Arm architecture for its performance and low-power consumption, which has proven crucial for power-hungry data centers, consumer devices, and sustainability efforts.

Sustainability

The demand for semiconductors has never been higher, and it is likely to rise more as new technologies such as 5G, AI, and the internet of things (IoT) emerge. On that front, semiconductor production would increase, resulting in a tremendous increase in energy and water use.