Photo by Emma Francis on Unsplash
The semiconductor industry is going through one of the most exciting phases. Worldwide the demand for semiconductor-powered products is increasing and driving very high silicon demand that the semiconductor industry has never seen before. It has also re-ignited the debate to build more semiconductor design and manufacturing capacity, which in the long run is going to empower the semiconductor businesses and will increase the market reach.
The spike in semiconductor demand also means that the industry will touch the trillion-dollar market. The path the semiconductor industry took to reach half of it has taken several decades, and in a very short time, it is set to grow by 50%. It showcases how the last few years have fueled the demand, and there is no denying that it will stay like this for years to come.
Technology: The semiconductor manufacturing process will have to complement the design methodologies by enabling high-yielding error and defect-free processes.
Business: Apart from the expansion of the existing market, semiconductor businesses will have to create a new emerging market for next-gen devices.
However, achieving such a high target is not an easy task. It requires thorough planning from the industry level to the semiconductor business level. On top, this involves focusing on different aspects ranging from technological solutions to capacity building.
In this regard, semiconductor design and manufacturing houses have been working hand in hand to come up with new technology-driven solutions and are also focusing on the capital required to enable new advanced solutions. The majority of the planning is still on paper and the next few years are crucial and will showcase whether the semiconductor industry will be able to expand its design and manufacturing capabilities to march toward the trillion-dollar market.
Apart from focusing on technology and business, semiconductor companies will require supply-level strategies to enable next-gen solutions. It means focusing on bringing more resiliency to the supply chain apart from building capacity for the semiconductor shortage-free world. Both demand in-depth planning for decades, if not years.
The semiconductor shortage has sparked the debate to make resiliency to the supply chain and semiconductor capacity. Investments to address these two challenges have already been in the execution phase. However, there is also a risk if the demand goes down and the supply exceeds the requirement. The cost of not acting towards resolving the supply chain and capacity issues is far more than predicting the future.
Chain: Semiconductor end-to-end supply chain will have to be more robust than ever with little to no room for shortages.
Capacity: Semiconductor design and manufacturing capacity both are going to play a vital role in creating growth driven journey.
Eventually, there is no magical process to enable the semiconductor industry to achieve high numbers by the end of the cade. it will all depend on how the market grows for the next decade and whether the plan the semiconductor business is executing will eventually help the semiconductor industry or not.
