The semiconductor industry is presently in one of the most important moments in its history as we approach 2022. While we are still dealing with the worldwide repercussions of the chip shortage, several other key trends have had a significant impact on this market.

In this article, we’ll look at semiconductor industry trends and predict what we can anticipate in the future.

Chip Shortage Continues

The worldwide semiconductor chip scarcity has had a terrible impact on most sectors and supply chains. Automakers and consumer technology firms have experienced the greatest strain of restricted chip supplies since many have been forced to postpone product releases, resulting in anticipated revenue loss.

The fact that demand for chips is increasing suggests that supply chains will remain restricted for the foreseeable future. That implies everyone – from semiconductor firms to their consumers – should concentrate on developing more robust supply chains and implementing just-in-time methods selectively.

The future is never certain, but there are several steps you can take to be sure that it goes well. To prepare for the future, you should reconsider near and long-term plans and apply what has been learned from global supply shortages.

Global Impacts on The Geopolitical Environment

Today’s mergers and acquisitions are frequently smaller deals or take longer to finish owing to geopolitical issues. The climate hasn’t been particularly good for larger, multibillion-dollar transactions, to say the least. Even while COVID-19’s influence on worldwide chip shortages grows, select megadeals have begun to surface amid these concerns.

We believe these larger transactions will be subject to comparable geopolitical limitations, making smaller transactions an appealing option. It will be critical for businesses in the future to figure out how to get the most value out of lesser possibilities.

Geopolitical factors are also influencing the semiconductor sector, with some firms constructing or planning to construct their fabs to guarantee chip manufacturing capacity.

Around the world, governments are enacting measures and programs to help them secure or establish their place in the global semiconductor supply chain. As a result, we should anticipate that the global semiconductor industry will change as chips flow in and out of our economy.

A change in The Competitive Landscape

The ability to control the integration of software and hardware while differentiating oneself from rivals is giving tech giants such as Apple, Tesla, Google, and Amazon more power over the parallelization of their products. They’re gaining more influence over the software-hardware interface by developing specialized ASIC chips specifically for their items.

For example, Amazon is now utilizing its Graviton processors. Similarly, Google just unveiled its new Pixel 6 and Pixel 6 Pro Phones, which use Tensor, the company’s first chipset designed to bring AI capabilities to their mobile phone line-up. Apple’s new 2021 MacBook Pros are also built using the company’s in-house-developed M1 chips.

In each case, these businesses feel they can gain technology distinctiveness by developing custom chips to meet the needs of their applications rather than utilizing generic chips as their competition.

Chip Architectures Confrontation

For almost 50 years, the x86 architecture has dominated the microprocessor industry. However, this is changing as Arm becomes more popular. While Arm’s design was created for low-power chips for vertical applications, they are now emerging not only as a low-power alternative but also as a high-performance adversary matching the big names in x86 computing.

This is part of the reason why when hyperscalers like Google and AWS decided to build their chips, they opted for the Arm architecture’s speed and low-power consumption, which have become so important in data centers, consumer products, and sustainability efforts.

The ARM is on track to reach the same critical mass that x86 did long ago, as Arm continues to attract new consumers. As history demonstrates, when the volume shifts, so do the industry.

This shift toward Arm is altering the system dynamics in the semiconductor industry. Unlike the x86 platform, where only a few vendors can offer chips, Arm has evolved into a broker that distributes its IP to multiple firms. Businesses have more leeway when designing their chips using Arm because they do not have to spend money on a costly fab build-up.

Sustainability

Due to the development of new technologies such as 5G, AI, and the Internet of Things (IoT), demand for semiconductors has never been higher. To keep up with this growing demand, chip manufacturing must expand, which will result in a significant increase in energy use and water consumption.

A single semiconductor plant may consume up to 1 TWh of energy each year and 2-4 million gallons of ultra-pure water a day. Industry leaders such as TSMC and Intel have been implementing proactive measures, and they’ve been working on large sustainability plans.

TSMC, for example, has developed various water recycling opportunities through water resource risk management, the addition of new water sources, and the implementation of pollution prevention methods to maximize water usage effectiveness.

Intel has also released its 2030 operational sustainability objectives as part of the company’s goal to become a worldwide leader in environmental responsibility. By 2030, Intel expects to minimize 60 billion gallons of water and contribute to external water restoration projects by achieving net positive water use. Intel also intends to utilize 100% renewable energy across global manufacturing operations and save 4 billion kWh of electricity by 2030.

Possibilities in 2022

As we saw last year, the semiconductor sector will face several challenges and opportunities in 2022. We at VYRIAN are proud of our ability to keep track of the most recent changes, competitive dangers, and worldwide semiconductor industry trends. This allows us to provide the supplies for the best quality of Electronic Components and Semiconductor chips to you.

At VYRIAN, our engineers are here to support you 24×7, We will help you source the most obsolete parts and components that are too hard to find in the industry.