iNDICA NEWS BUREAU-
The semiconductor industry that has powered life-changing digital devices had been long taken for granted, is today a shining star. The world acknowledged its importance only after chip shortage and massive supply chain disruptions left many electronics manufacturers scrambling for semiconductors.
“Governments around the globe, more acutely aware than ever before of the critical importance of chips to their economic health and national security, are jockeying for advantage in building out their semiconductor supply chains to help ensure uninterrupted supply even in the worst of times. Rising geopolitical tensions have only added fuel to the fire. While there is an intense focus on the promise of artificial intelligence (AI) as an engine of transformative applications such as ChatGPT, the central role of semiconductors is again being given short shrift – this time in accelerating the AI revolution,” Ajit Manocha, President and CEO of SEMI in a recent co-authored article. SEMI is a catalyst for connection, collaboration, and innovation, helping the semiconductor industry to deploy life-changing tech worldwide.
Manocha, in a post uploaded on SEMI’s website, has said that the opportunities for semiconductor industry growth are abundant and there for the taking. “While the global industry experienced about a 10% revenue decline to $520 billion in 2023, signs point to a return to growth in 2024 with analyst projections ranging from an increase of 9% to 16%. The SEMI Market Intelligence Team also expects the semiconductor equipment and materials segments to rebound from 2023 declines.”
“I remain bullish on the industry reaching $1 trillion around the end of this decade. Fast-growing demand for a diverse range of disruptive technologies and emerging applications – from AI, autonomous and electric vehicles, and high-performance computing to 6G and autonomous machines – will fuel this historic expansion. To support anticipated industry growth, 109 new fabs are expected to come online between 2022 and 2026, according to our most recent SEMI World Fab Forecast report. Fully 89 of these fabs have already either begun operation, equipping or construction, and more fabs will be needed through the end of the decade to support the burgeoning demand for chips,” he added.
Talking about the challenges ahead, Manocha warned: “The semiconductor industry will need to overcome significant headwinds on its path to $1 trillion, and many of them are exacerbated by the push to add production capacity.”
He pointed out a number of critical points: “The industry remains in the grip of a global talent shortage. We project the industry will need 1 million additional workers by 2030. Investors, customers, government agencies, top talent, and other key stakeholders expect the industry to make significant progress on sustainability goals on reducing greenhouse gas emissions, energy and water consumption, as well as the use of hazardous chemicals. With semiconductor supply chains uniquely global, complex, interdependent, and sensitive to disruptions, geopolitical tensions, climate change, and other factors are adding to our challenges. Governments around the globe recognize the strategic importance of chipmaking to their economies and national security. Industry players must devote more time and effort to navigating government regulations and capitalizing on opportunities for incentives that help the industry address concerns around talent, sustainability, and supply chain continuity.”
Manocha says these issues cannot be addressed by any single executive, company, or country. And that these are just peripheral challenges to the industry’s pursuit of innovations for advanced semiconductors – the most complex feats of engineering in human history that are the building blocks for “the many technologies we depend on in our daily lives. Industry collaboration within and across international borders is critical to overcoming these headwinds”.
“Over the course of my seven-year tenure as President and CEO of SEMI, we have worked to build the premier platform for global semiconductor industry collaboration to address its shared opportunities and challenges. Based on guidance from our industry boards and representatives from member companies on top concerns, SEMI has established initiatives to focus on four critical challenges: Workforce Development, Sustainability Initiative, Supply Chain Management Initiative, and Global Advocacy. For 2024, a top-level SEMI corporate goal is to advance each of these key initiatives,” he added.
Each initiative had a clear impact in 2023, guided by inputs from more than 700-member company executives worldwide who participate in various SEMI boards, governing councils, and advisory committees.
“The chip industry has reimagined itself time and again over its storied history, and it is time for us to renew ourselves once again through the collaboration and innovation that has brought the industry to a new inflection point. Across our programs and other offerings, SEMI members are coming together to accelerate the pace of global industry growth and reach $1 trillion and beyond,” Manocha said.
