Semiconductor industry has witnessed a sudden disruption in its supply chain since last year. Demand of chips has taken a sharp increase during the COVID – 19 pandemic. As semiconductor chips are considered an integral part of any electrical appliances, popularity of electric products such as smart phones and laptops during the pandemic situation has created a high demand of semiconductors. Therefore, the industry has experiencing a digital transformation by using latest technologies like automation, AI, Industry 4.0 standards and Internet of Things (IoT) so that supply chain can be improved.
The present scenario
The world has encountered a crisis for semiconductors as manufacturers are unable to cope up with the increasing demand of semiconductor chips in the market. This has become a serious problem for industries related to electronics and smart systems sector as a semiconductor chip is the most important component of an electrical product. Few enterprises have shown concern over this matter during the early stage of COVID – 19 pandemic. However, it has since become a massive issue of concern for the global market.
According to Intel, this situation would stay for “a year or two” and supply chain would return to normal after that time period. Gartner has reported that supply chain of semiconductors would remain disrupted up to mid 2022 and after that, things would start to return to normal. The reason is that a semiconductor chip usually takes several months to manufacture and therefore, production cannot be increased within a short period of time.
The main reason of semiconductor crisis is the sudden rise of electric gadgets sales during the recent pandemic. Outbreak and rapid spread of the virus has forced governments to take drastic measures of implementing strict lockdowns on majority countries. As a result, organizations had no other choice but to shift their entire businesses onto online platforms for maintaining the workflow. This has resulted in a sharp rise of purchasing electronic products for accessing the Internet.
Another important reason for semiconductor crisis is the present relationship status between the US government and Chinese government. Chinese manufacturers are known to supply a hefty amount of semiconductor chips to various American enterprises. Due to US government blacklisting a number of Chinese companies, supply chain of semiconductors has been disrupted. However, India is now planning to become an integral part of the global semiconductor market that amounts to 1.5 trillion USD. India plans to emerge as a hub of semiconductor manufacturing post COVID – 19 pandemic.
Digital transformation of semiconductors
Semiconductor industry has experienced a significant growth in the global market in recent years. Factors that are considered as major driving forces of this growth are IoT, analysis of big data, energy efficiency and security. Enterprises related to semiconductor manufacturing have initialized digital transformation so that present disruption of semiconductor supply chain can be improved as soon as possible.
Manufacturers are using applications of modern technology, automation, AI and IoT to increase their performance index so that global competitiveness can be strengthened. Most of the enterprises firmly believe that technology architecture is the most important factor of creating an overall positive impact on a company’s success. Several semiconductor companies have adopted cloud platforms as a medium for conducting their business activities to generate a positive performance.
Global disruption and industry disruption are considered as semiconductor industry’s main driving forces. Companies are focusing on IoT services, 5G communications and edge computing to improve the present situation.
Analysis of big data
Big data analytics has become a subject of interest within the semiconductor industry. Companies can use big data analytics to obtain information regarding market trends, patterns and consumer preference for improving their decision making procedures. A company can also increase risk management processes, analytical skills and business profits with the help of data analytics. Allied Market Research has estimated that the global semiconductor market size would grow from 17,134.70 million USD to 42,103.80 million USD within 2030.
A steady growth and popularity of data analytics has been observed in the semiconductor market. However, recent pandemic has caused a sharp downfall within the market. At the same time, the market has experienced a positive growth due to the popularity of cloud platform and cloud based software. The market will further expand on applications of IoT services, data analytics and Industry 4.0 standards.
Hope this blog gives you adequate information regarding semiconductor supply chain and its present condition. To discover more, visit our official website www.ranjhiyadigital.com or write to us at [email protected] and get to know our top – class services about website & app development, marketing automation, graphics design, digital marketing and many more.
