A look into the growing semiconductor industry and what it means for your business

THE GROWING SEMICONDUCTOR INDUSTRY

Did you know that a single semiconductor chip has as many transistors as all the stones in the Great Pyramid of Giza?

The semiconductor industry is now one of the world's most important sectors. However, despite semiconductors being fundamental to modern life, not a lot of people are actually familiar with these complex chips that give our devices the power to process data.

To help you better understand the industry and how its growth will affect your business, here are 3 interesting facts about semiconductors:

1️⃣ It’s expected to be a trillion-dollar industry sooner rather than later

The global semiconductor market is expected to reach US$673.1 billion in 2024, according to a report from Market.us. By 2032, the semiconductor market is expected to grow to US$1.3 trillion — that’s roughly the same as Indonesia’s GDP today.

2️⃣ 70% of the semiconductor industry’s growth is predicted to be driven by just three industries: automotive, computation and data storage, and wireless.

McKinsey & Company predicts that the strongest-growing segment is likely to be automotive, where we could see a tripling of demand, fueled by applications such as autonomous driving and e-mobility.

3️⃣ Taiwan produces over 60% of the world's semiconductors and over 90% of the most advanced ones.

Most are manufactured by a single company, Taiwan Semiconductor Manufacturing Corporation (TSMC). Outside of TSMC, other leading semiconductor companies are Samsung Electronics (Republic of Korea) and NVIDIA Corp (United States).

💡What does this growth mean for your business? According to McKinsey & Company, the growth of the semiconductor industry will force decision-makers across all industries to increase their focus on R&D, factories, and sourcing. Focus on those three things if you want to unlock areas of opportunity for your business.

THIS WEEK’S STORIES

🇺🇸 Renowned U.S. chip designer wants to end Nvidia's global dominance

🇯🇵 ITOCHU to take part in Taiwan's smart city project

🇲🇾Melexis opens its largest wafer testing site in Malaysia

NEWS
Renowned U.S. chip designer wants to end Nvidia's global dominance

🇺🇸AUSTIN, TEXAS — Tenstorrent CEO Jim Keller, who worked for Intel, AMD and Tesla, said in an interview with Nikkei Asia that he wants to lower the price of AI applications by designing chips that are more efficient than Nvidia's and, in the process, end the American giant’s global market dominance.

READ MORE

NEWS
ITOCHU to take part in Taiwan's smart city project

🇯🇵TOKYO, JAPAN — Tokyo-based trading giant ITOCHU secured a contract to develop and test AI systems that will help run the transportation network and energy infrastructure of a future smart city project in southern Taiwan, according to a company press release.

READ MORE

NEWS
Melexis opens its largest wafer testing site in Malaysia

🇲🇾SARAWAK, MALAYSIA — Belgium-based supplier of semiconductor solutions Melexis has opened its largest wafer testing site worldwide in Kuching in the Malaysian state of Sarawak to strengthen its presence in Asia-Pacific and meet the rising demand for semiconductors around the world, according to a company announcement.

READ MORE

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