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Semiconductor & Electronics

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Challenges the Semiconductor and Electronics Industry Faces

 

Power Utilization

Power utilization has always been a critical obstacle in the semiconductor and electronics industry. The industry is rapidly adopting miniaturization for better operational efficiency, and the overall chip size has shrunk. Chip density has also reduced with around millions of gates on one single chip, which has created in power scattering issues.Power utilization and heat generation have been prominent hurdles right from the start of the semiconductor and electronics era, thereby shifting the industry away from the path of Moore’s law. This all-time challenge was and is still one of the major roadblocks that restrain; the growth of the sector, for instance, high power and heat concerns are obstructing the path towards the development of augmented reality glasses.

Some of the suggested factors for tackling this issue includeeither an intense focus on faster CPUs with major tasks managed by software or consider it a system problem and develop a specialized solution to take the industry growth to newer heights. New entrances of various start-ups such as Cerebral Systems, Mythic, and Syntiant falls under the category of developing a specialized solution for these heat spillage problems. Still, there may be limits to just how much specialization can help.

Acute Skill Shortage

The semiconductor industry has experienced enormous growth, reaching a value of USD 450 billion in 2019. Major propelling trends and technologies behind this growth include the Internet of Things (IoT), artificial intelligence (AI), wireless, and mobile technologies, and various others. However, besides this impressive growth, the industry faces some acute challenges in terms of the shortage of skills and talent.

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The widening talent gap is a global concern, and key semiconductor hubs face talent shortages of varied proportions. For example, Singapore is attempting to address talent shortages in the specialized fields of electronics and electrical engineering manufacturing, the semiconductor industry’s building blocks. China, which accounts for 50% of global chip demand, needs 400,000 more semiconductor employees to meet its growth ambitions to develop domestic semiconductor manufacturing.

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Where the Industry is Heading

The widespread adoption of semiconductors and electronic components is the foremost factor that drives industry growth.

Internet of Things to DriveDemand for ICs and Chips

IoT technology is expected to be a game-changer for the semiconductor industry. ‘Smart’ technologies and concepts have gained immense popularity, such as smart home, smart city, and Industry 4.0, which has propelled the demand for IoTtechnologies and, in turn, semiconductor chips and ICs. To capitalize on the opportunity and gain higher profit margins and long-term growth, players in the industry must redefine their application, sales, and product development strategies.

Digital Supply Networks to Change the Dynamics of the Semiconductor Industry

Today, digitalization has gained roots in almost every commercial sector. It primarily refers to the transition from a conventional structured system to an open cloud-based system that merges data from multiple sources. The growing adoption of digital supply network technologies is expected to bolster the growth of the semiconductor industry. The trend can help semiconductor manufacturers solvecommon problems,such as limited information transparency across the manufacturing and supply chain.

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Solutions

We provide customized research solutions through a holistic approachto help our clients achieve their goals. Our solutions cover the inclusions listed below.

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Impact

The demand for miniaturized electronics is growing as companies across industries are looking for innovative ways to provide energy-efficient devices that accelerate manufacturing. This creates ample opportunity for OEMs and service providers of semiconductor companies to focus on sensors, regulators, electric motors and drives, manufacturing control and execution systems, and robotics. Our research expertise helps companies in these business areas capitalize on the potential venture avenues and address the requirements associated with diversified value chains, surging complex automation systems, and the increased focus on software.

As an example of our work, we helped a leading company that manufactures semiconductor products to resolve project complexity in improving its cost-competitiveness and cutting development time by 30%. In another case, one of our clients, a leading player in the electronics sector, approached us to examine market dynamics, technological advancements, and supply chains. Our solution covered a detailed analysis of key players and their distribution channels and various technical measures, which helped the company adopt a suitable future growth strategy.

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