According to the latest research by Mathys &Squire, the world's leading intellectual property law firm, the number of semiconductor patents filed globally has increased by 22% in recent years, from 66,416 in 2022-2023 to 80,892 in 2023-2024 (ending March 31). It is reported that this increase in number is mainly due to the rapid expansion of artificial intelligence technology and the increase in investment in R&D for basic semiconductor production. The innovation and application of semiconductor technology not only promote the vigorous development of the electronics industry, but also profoundly change people's lifestyles and socio-economic patterns. Therefore, the number of semiconductor patent applications has also become one of the important indicators to measure the scientific and technological innovation ability and industrial development level of a country or region.
The increase in the number of semiconductor patent applications is not only reflected globally, but also shows clear regional differences. Some regions with strong technology and developed semiconductor industries, such as the United States, Europe, Asia, etc., have seen particularly significant growth in patent applications. These regions have a high level and strength in semiconductor technology research and development, innovation and application. From the perspective of technical fields, semiconductor patent applications are mainly focused on chip design, manufacturing process, packaging and testing, etc. Technological innovation in these fields is an important driving force for the development of the semiconductor industry.
In order to enhance the competitiveness and innovation ability of their semiconductor industry, governments around the world have introduced a series of policies and measures, such as increasing R&D investment, optimizing the innovation environment, and strengthening intellectual property protection. The implementation of these policies has provided a strong guarantee for the growth of semiconductor patent applications. With the rapid development and application of emerging technologies such as the Internet of Things, 5G, and artificial intelligence, the demand for semiconductor products is increasing. In order to meet market demand, semiconductor companies need to continuously develop new technologies and products, which has driven the growth of patent applications.
Figure: The number of semiconductor patent applications has soared (Source: Mathys & Squire)
On the other hand, the continuous innovation and breakthrough of semiconductor technology is a key factor driving the growth of patent filings. As technology continues to advance, new semiconductor materials, manufacturing processes, and devices are emerging, providing more possibilities for patent applications.
So what impact has the surge in global semiconductor patent filings had on the supply chain?
Intensified technology competition: The global semiconductor industry has become more competitive as the number of semiconductor patent applications in China has surged. China's growth in the number of global semiconductor patent applications, especially the 42% growth rate, shows China's efforts to reduce its dependence on Western technology and improve its local semiconductor R&D capabilities.
Supply Chain Diversification: The growth of global semiconductor patent filings shows that countries are seeking to ensure the stability and security of supply chains. Especially in the context of the U.S. export control of semiconductors to China, China has increased its support for the local semiconductor industry and promoted the acceleration of related R&D activities.
Increased investment: With the rapid development of AI technology, global chip manufacturers, including those in China, are ramping up their R&D efforts on next-generation AI hardware technologies and applying for relevant patents to seize market opportunities. This trend is likely to lead to more investment in semiconductor R&D and production to maintain a competitive edge.
Policy response: The implementation of the U.S. CHIPS and Science Act, as well as the policy of export controls against China, prompted the United States to increase its research and development efforts in semiconductor technology to maintain its leading position in semiconductor technology and the stability of its supply chain.
Recovery of market demand: With the recovery of market demand and the penetration of high-end products as the key word, the performance of semiconductor companies is improving, and many companies are expected to double their net profits, which indicates that the global semiconductor supply chain is adapting to new market demand and technological development.
