Semiconductors

Semiconductors are an essential component of the microchips that power virtually every modern electronic device. As the objects around us get “smarter” and demand for electronics grows around the world, the demand for semiconductors will continue to skyrocket.

The Semiconductor Industry Association (SIA) recently announced that total sales of the global semiconductor industry were US$412.1 billion in 2019, a decrease of 12.1% compared to 2018. The semiconductor industry has already suffered significant losses due to COVID-19. However, it is determined to rebound strongly. The global semiconductor market size is expected to reach US$726.73 billion by 2027, with a compound annual growth rate (CAGR) of 4.7%.

The global semiconductors market is primarily driven by the rising demand for consumer electronics, industrial tools & equipment, automotive products, and networking and communication products. The rapid advancements in the technologies in consumer electronics such as smartphones, laptops, air conditioners, and various other ranges of products had rapidly boosted the consumption of electronics across the globe, which fueled the growth of the semiconductors market.

Moreover, the growing popularity of the latest technologies such as IoT, artificial intelligence, and virtual reality is expected to exponentially augment the demand for semiconductors across the globe. Moreover, the rising demand from the automotive industry for the manufacturing of electric vehicles is driving the market. The semiconductor market is expected to grow substantially owing to the rising investment by the market players to expand the production facilities to tackle the excess demand for semiconductors across various industries.

In an ever more connected world, we not only rely on these devices for socialization and entertainment, but also use them for our work, school, and gathering information. Truthfully, functioning without our modern technologies is practically unimaginable. In most cases, these ever-important devices are powered by semiconductors—small chips that conduct electricity. Over the years, semiconductors have gotten more and more powerful, while also becoming cheaper and smaller.

As semiconductor technology continues to improve, devices of all kinds will, too, open up new possibilities across all industries. When semiconductor hardware is paired with powerful software, such as artificial intelligence and machine learning programs, it opens up near-limitless amounts of potential and a pathway to exploring applications that will make life easier for people worldwide.

Corporations and consumers globally use semiconductors, small conductors of electricity also known as semis or chips in millions of devices, including space vehicles, car computers, smartphones, medical equipment, appliances, and more. As electronic devices proliferate, companies that manufacture semiconductors continue to prosper. These companies tend to be driven by the goal of producing smaller, cheaper, and faster semiconductors to facilitate more streamlined, powerful, and affordable technology products. Semiconductors can be divided into four categories: microprocessors, memory chips, commodity integrated circuits, and complex "systems on a chip."

Existing at the fundamental level of technological development, semiconductor components are ubiquitous. These components allow everything from simple switching circuits to devices like computers, smartphones, and medical equipment to function and respond to user commands accurately.

They play an important role in not only powering our devices but also providing functioning AI (artificial intelligence). As time goes on, semiconductors are also being incorporated in cars and houses. Along with the growth and innovation of new technologies, the companies producing semiconductors continue to grow at a steady rate.