The International Semiconductor Executive Summit (ISES), held not long ago in Taiwan, provided a fascinating discussion on the topic of semiconductor industry development. The semiconductor industry is attracting unprecedented attention from investors around the world, but disruption has come to the forefront in this rapidly evolving industry, transcending the traditional economic cycle to become a major challenge to financing. For the semiconductor industry, disruption revolves around three main themes: consumer demand for end-user products, technology innovation and supply chain rebalancing.
Technological progress and innovation:
Moore's Law is approaching its limits, but semiconductor performance is expected to be further improved through process upgrades, advanced packaging, compound semiconductors and other new technologies. The emergence of new technologies, such as quantum computing, photonic computing, and brain-like computing, which use different laws of action to replace classical electronic computing, can theoretically realize a significant increase in computing efficiency. The next generation of extreme ultraviolet (EUV) tools, especially high numerical aperture (Hight NA) EUV lithography, represents a major leap in technological innovation for the semiconductor industry. Photolithography is one of the key steps in the fabrication of integrated circuits by projecting the chip design onto a silicon wafer and utilizing photolithography for graphic transfer to form micron-sized circuit structures and devices. As semiconductor processes continue to evolve, so do lithography technologies.
Figure: Three disruptive factors shaping the future of the semiconductor industry
Consumer demand for end-user products:
The surge in demand for artificial intelligence, high-performance computing and the recovery in demand for smartphones, computers, servers and automobiles has brought new growth momentum to the semiconductor industry. According to IDC, AI chip supply will struggle to meet market demand as demand for end devices gradually recovers, but the semiconductor market is expected to return to a growth track in the next few years, with annual growth rates soaring to 20%. In addition, the demand for more advanced and efficient semiconductors will only intensify as consumers continue to seek smarter devices in all categories, from smartphones to home appliances. Growing consumer expectations for smart devices are driving the semiconductor industry forward, forcing manufacturers to innovate at an unprecedented rate.
Supply chain rebalancing:
In the face of the volatile ups and downs of the international situation, autonomous control has become an important area for maintaining national strategic security, and semiconductors, as the front-end of the field, have seen a substantial increase in the willingness to localize and replace. Geopolitical conflicts are forcing a major rebalancing of the global semiconductor supply chain. Government actions are reshaping the landscape, especially between the Western and Eastern Hemispheres.
Disruptive technologies may be everywhere, but the semiconductor industry is not slowing down anytime soon, requiring semiconductor companies to consider and respond comprehensively in terms of technological innovation, market strategies, operational models, talent strategies, and the policy environment. Through continuous innovation and practice, semiconductor companies can seize opportunities, respond to challenges and realize sustainable development.
