As we are all set to enter 2023, the global economy is still reeling from the recent pandemic. However, the semiconductor industry continues to grow. According to a study by the World Semiconductor Trade Statistics Organization (WSTS), the revenue of the global semiconductor industry for 2022 was projected to be 10.1%. However, recently WSTS revised the data to 8.8%. In the meantime, industry insiders generally agree that the global semiconductor capacity shortage trend will run through 2023. However, there are a few key trends as well that are enlisted here. Read on to know more.
Trend#1: 4nm Process Chips Are Commercialized in Batches
Although the complexity and cost of advanced processes below 7nm chips have risen drastically, it is still necessary for those manufacturers who pursue the ultimate chip performance. Since the semiconductor process is gradually approaching the physical limit, chip development must continue to improve performance and reduce power consumption and chip size through changes in transistor architecture, back-end packaging technology, or material breakthroughs.
Trend#2: The Trend of Cross-Border Self-Developed Chips Will Be More Obvious
Nowadays, standard chips can no longer meet the requirements of the world’s top tech giants such as Amazon, Apple, Facebook, Tesla, etc. Due to this, major brands are developing their customized chips rather than relying on semiconductor companies. This trend is actively being followed all over the world. At present, some of the top electronic manufacturers can design their chips. Massive businesses like OPPO, Xiaomi, and Media are already building their semiconductor manufacturing teams.
One of the significant advantages of creating a self-built design team is that they hope to take their destiny into their own hands, especially in the face of the industrial chain crisis that broke out in the last two years. This strategy has proven helpful and received results.
Trend#3: Third-Generation Semiconductor Fabs Increase 8-Inch Capacity
As the first commercial third-generation semiconductor materials, silicon carbide (SiC) and gallium nitride (GaN) have recently attracted much attention. By 2025, the global power discrete device and module market will reach US$27.4 billion. By this, the market share of SiC and GaN will increase to 17%.
Global wafer manufacturers are actively promoting the commercialization of 8-inch SiC wafers. The explosive growth of applications, such as 5G communications, electric vehicles, and data centers, will also push up the production capacity of SiC and GaN wafers. SiC and GaN wafers are currently limited to 4-6 inches. With the head suppliers in 8-inch wafers, the production capacity of 8-inch wafers of third-generation semiconductors will increase in 2022. Also, the trend of adding 8-inch capacity will continue for years.
Trend#4: Ray Tracing Becomes a Must in GPU Applications
In the last couple of years, real-time ray tracing has rapidly gained popularity in the graphics computing field, even though ray tracing is not a new technology. Industry experts unanimously recognize ray tracing can help create a more realistic light and shadow relationship between 3D objects in the virtual graphics world and visually make the picture more natural.
Regarding desktops, data centers, and professional vision fields, the primary thrust of ray tracing comes from NVIDIA. Also, both AMD and Intel’s GPU offerings were actively following up in 2021. Regarding smartphone technologies, because of the greedy computing power requirements of ray tracing, it will be a little later.
Trend#5: AI Has Deeply Penetrated More Imaging/Visual Markets
AI is undoubtedly one of the hottest technical directions of computational photography, and mobile photography is the application that benefits the most. The proportion of AI in machine vision is also becoming very significant in the photography direction and the automotive, industrial, security, and other markets. AI-specific processors or units are completely entering the image processing process.
Conclusion
With the rise of economic activity, Wakefield Research forecasts that demand for semiconductors and VLSI designs will rebound quickly as businesses worldwide begin to renew their investment in cloud infrastructure, AI, and IoT devices. Even though the semiconductor industry was hit adversely due to supply chain disruption during the pandemic, it will bounce back. At Tessolve, we enable businesses to prepare the technologies and strategies they need to be resilient in the face of change. For more details, email us today at sales@tessolve.com.
