Semiconductor Industry Outlook: Factors Shaping The Future

February 2, 2022
February 2, 2022 Lauren

Semiconductor Industry Outlook: Factors Shaping The Future

The semiconductor industry has come a long way since its early days, and it has seen some amazing changes in recent years. As technology continues to evolve, the semiconductor industry identifies new challenges and opportunities for both employers and employees. This article discusses significant trends that could drive decisions in the future.

Semiconductor Industry Outlook

The latest World Semiconductor Trade Statistics (WSTS) report forecasts a further 8.8% growth in the semiconductor market in 2022, from an already significant 25.6% rise in 2021. This is the industry’s biggest jump to date since it expanded by 31.8% in 2010.

Unlike many sectors, semiconductors held on strong amidst the COVID-19 pandemic, driven by robust consumer demand for electronic technologies. As of 2021, the global semiconductor market is valued at $553 billion. Industry growth was felt across all continents, with the Americas seeing a 24.6% rise. In 2022, this market is expected to hit a $601 billion value, due mostly to an expected surge in demand for sensors and logics.

If you are an employer in the semiconductor industry or a professional contemplating a career move, this sector offers plenty of stable opportunities to expand your network and multiply revenue.

5 Semiconductor Industry Trends To Watch

Here are some of the trends that will be shaping the future of the semiconductor industry in the coming years.

1. The first generation of graduates with RISC-V knowledge and training will be ready in 2022.

Pronounced as “risk five,” RISC-V is an open-source ISA that’s based on reduced instruction set computer (RISC) principles. Since it is free to use and does not violate any known patents, RISC-V enables the development of a wide range of hardware without having to pay royalties. It also allows researchers and developers to explore the instruction set infrastructure, thus encouraging innovation.

RISC-V started in 2010 at the University of California, Berkeley, and its first batch of students is graduating in 2022. With that said, the semiconductor industry outlook seems bright, with the initial wave of technologists coming and bringing more efficiency and innovation skills.

2. Wafer foundry makers will experience steady growth.

Wafers are ultra-thin semiconductors commonly used to manufacture integrated circuits, solar cells, and photovoltaics. Some of the biggest makers of wafer foundries include UMC, SMIC, TSMC, GlobalFoundries, and Powerchip.

According to Digitimes Research, the wafer foundry category is expected to rise by 15% in 2022 — with revenues likely to go beyond $110 billion — as the demand for customized and 5G chips carries over from 2021. Despite the supply challenges brought by the pandemic and the technology rivalry between China and the U.S., the global semiconductor industry outlook for wafers in particular remains robust.

3. The digital transformation in the workplace will continue and thrive.

As the workforce continues to embrace the digital environment, with no signs of wavering in the next few years, working from home and remote learning will continue to accommodate a huge demand for semiconductor-driven technologies. The need for more and highly-advanced foundry services and devices remains because live streaming, online schooling, virtual conferences, and the existence of massive data centers will not likely go away anytime soon.

4. 5G smartphones are here to stay.

5G technology achieved up to 50% in increased revenue in 2021 — up from 38% in 2020 — and this industry trend is expected to continue into the next few years. As more consumers appreciate the power and the need for 5G-driven devices, the need for more supportive radio frequency front end modules (RFFEM) and silicon parts in smartphones will drive manufacturing demand.

5. There will be a high demand for customized chips.

The shifting competitive landscape among major technology makers will mean massive growth for manufacturers of customized chips. If you are looking to invest capital or your skills in this area, the timing just might be perfect. With the likes of Google, Tesla, and Apple now creating their own ASIC chips for their products, the market for specialists is strong. Companies are no longer using the same generic parts as their competitors, thus creating a much higher value for those who know how to differentiate.

Succeed In The Semiconductor Growth Market With TruPath

Just as in the previous years, there will be plenty of challenges and opportunities for anybody looking to thrive in the semiconductor market in 2022. At TruPath, we take pride in having a deep understanding of the global trends and competitive outlooks for those who want to enter or expand their horizons in this market. This enables us to match the right talents with the best companies.

Submit your resume to access our database of highest-paying and fulfilling roles available in the semiconductor market, or contact the TruPath team today to discuss executive recruitment and hiring plans and find top semiconductor talent for your company.