In our daily lives, we consistently engage with semiconductors, found in integrated chips, solar panels, microcontrollers, and various technical devices. Staying connected to semiconductor industry trends is crucial, given the groundbreaking advancements in chip technology and the increasing demand for IoT devices. The semiconductor industry remains at the forefront of innovation, shaping the way we interact with technology.
So, let’s learn more about prevalent trends in the semiconductor industry that are propelling various industries forward and shaping the future of electronics.
The Evolution and Potential of Semiconductors
Semiconductors are materials with electrical properties that fall between those of conductors (like metals) and insulators (such as ceramics or glass).
Semiconductors are the foundation of modern electronics, including microcontrollers, integrated chips, diodes, transistors, photosensors, calculators, 3D printers, autonomous vehicles, and solar panels. These technological devices support various applications, including trains, the internet, ATMs, and medical systems, enhancing daily life and comfort.
Semiconductors play a crucial role in the advancement of various technological devices, and they offer numerous benefits that contribute to their significance. Firstly, since semiconductors are cost-effective and highly portable, they are suitable for integration into a wide range of devices and thereby enhance reliability. Additionally, due to their durability and low power requirements, they are ideal materials for various applications across multiple industries.
As a result, enterprises in the sector are actively embracing change and fostering innovation by leveraging emerging semiconductor industry trends, shaping the future trajectory of the industry.
Top 5 Semiconductor Industry Trends in 2024
Considering the importance of semiconductors, it is not unreasonable to say that their fundamental role has the potential to facilitate progress in a wide range of advanced technological applications across various sectors.
Advancements in semiconductor technologies are enabling innovations. Here are the top 5 trends in the semiconductor industry in 2024 and beyond.
1. Rapid Adoption of AI
AI is being adopted and implemented worldwide at a rapid pace. This provides a great opportunity for enterprises to make AI-integrated semiconductor chips. The production of AI-integrated semiconductor chips further reduces operational costs and increases manufacturing efficiencies. The surge in demand for AI-based applications and devices is significantly influencing growth opportunities within the semiconductor industry, aligning with current semiconductor industry trends.
Intel, the first AI chip company, garnered $1 billion with its Xeon processors. The third-generation Xeon Platinum series offers up to 40 cores, 1.6 times greater memory bandwidth, and 2.66 times greater memory capacity. Intel’s Gaudi neural network training accelerator and Goya inferencing chip are also popular. The latest Intel® NCS2 is designed for deep learning.
2. The Rise of IoT
The rise of IoT is one of the major semiconductor industry trends in 2024, which is transforming the overall industry landscape. IoT semiconductors have unique properties that traditional semiconductors lack. Both the consumer and commercial sectors now prefer IoT devices over other standard options. IoT-specific components will gain more momentum in the coming years, creating a golden opportunity for the semiconductor industry.
Huawei Technologies has signed a patent license agreement with Nordic Semiconductor, granting a fair, reasonable, and non-discriminatory (FRAND) component-level license of Huawei’s low power wide area (LPWA) cellular IoT standard essential patents (SEPs). The agreement aims to provide Nordic customers with comprehensive legal protection and a practical way to implement Huawei’s valuable standardized cellular IoT technology. This agreement aims to harmonize the cellular IoT industry with FRAND SEP licensing practices, benefiting Huawei, Nordic, and Nordic’s cellular IoT customers.
3. 5G Technology
The ongoing evolution of integrated chipsets in 5G networks is outperforming the processing and data transfer capabilities of its predecessor, 4G. This significant advancement is driving increased demand for a wide range of semiconductors, reflecting current semiconductor industry trends. The substantial investment in cell deployments for the new wireless technology proves highly advantageous for manufacturers of 5G infrastructure chips.
Qualcomm, a global semiconductor and telecommunications company, utilizes Snapdragon chipsets for 5G mobile devices, utilizing CDMA technology for wireless communication development.
4. Self-Driving Cars
Self-driving vehicles powered by semiconductor chips are becoming one of the key semiconductor industry trends. The integration of semiconductor chips in future cars will enable a variety of collaborative functionalities.
These advanced vehicles will benefit from automotive semiconductors, which will enhance connectivity, improve sensor capabilities, optimize battery performance in electric vehicles (EVs), facilitate automation, and provide numerous other enhancements. Additionally, the adoption of automotive artificial intelligence (AI) software will greatly enhance the operational efficiency of self-driving and semi-autonomous vehicles.
BMW and Qualcomm are partnering to develop next-generation automated driving solutions, offering Level 3 capabilities in the second half of 2025. This will enable drivers to ride without touching the steering wheel or constantly monitoring the road, but a human must be ready to take over when the system is unable to drive itself.
5. 3D Printing
3D printing technology offers the potential to produce powerful, compact chips in semiconductor manufacturing, becoming an increasingly popular semiconductor industry trend. However, its application in electronics is limited to passive components. This additive manufacturing method enables the creation of parts with limitless shapes, resulting in increased efficiency, reduced failures, and improved reliability in new facilities.
Additionally, employing 3D printing for electronic components offers the advantage of reducing reliance on the supply chain, as manufacturers would no longer need to maintain a large inventory of certain passive components. 3D printing reduces supply chain reliance and mitigates issues like vibration, leakage, and dead zones, reducing machinery parts and weight savings.
What are the Biggest Trends in the Semiconductor Industry?
As the use of semiconductors rises in the transmission and distribution industry, innovative solutions and the biggest marketing trend, wide-bandgap, are growing and impacting the semiconductor industry extensively.
Silicon carbide (SiC) is a formidable competitor to traditional silicon-based semiconductors due to its superior properties, including higher efficiency and handling higher voltages and temperatures. Wide-bandgap devices, like GaN and SiC, are gaining popularity in the semiconductor market, enabling the development of energy-efficient power electronics and compact, lightweight devices. As the demand for energy-efficient solutions continues to rise, wide-bandgap devices are likely to play a significant role in shaping the future of semiconductors.
From Silicon to SiC: The Advent of Advanced Semiconductors
Semiconductor industry trends are poised to bring about remarkable advancements and transformative changes. With the rise of SiC, wide-bandgap devices, and AI-enabled chips, the semiconductor industry is embracing new technologies that promise higher efficiency, increased functionality, and improved performance.
As companies address industry challenges and invest in talent and infrastructure, semiconductors will continue to be the backbone of our digital world, driving innovation across various sectors. The future of semiconductors is bright, offering endless possibilities for technological breakthroughs and influencing how we live, work, and connect in the coming years.