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Technology has always invoked radical changes, but unlike today, there used to be one major revolutionizing technology trend at a time. The world is becoming increasingly connected, more automated and more intelligent, driven by generational drivers—hyperscale computing, 5G, artificial intelligence and machine learning (AI/ML), industrial IoT (IIoT), and autonomous vehicles—which are invoking disruptive technological forces on vertical markets, unfolding varied levels of microelectronics and digital transformation across the globe. The increasing demand for miniaturization and higher speed is changing the dynamics of the semiconductor components needed to store and process data.
With this augmented digital effect on our lives, the electronics market opportunities—and challenges—have also accelerated. As a primary catalyst for this breakthrough, the semiconductor industry is the most vital growing segment, with a significant impact on business and society, and drawing attention from the public and government. Unlike investing the typical 10% of their revenues into CapEx, semiconductor companies are now investing more than 16%, which is higher than ever.
Governments are now focusing on the strategic significance and supply chain resilience of semiconductors, investing billions to ensure economic competitiveness and affirm their positions across the semiconductor value chain. Commercial best practices are increasingly adopted, including digital twins and co-design/co-optimization of hardware and software to ensure that systems sophistication is on par with technological advances.
The rising trend of innovative products, both household and consumer electronics that are intelligent, connected and voice-enabled, supports the proliferation globally due to its higher usage, convenience, and usability. Electronic product design companies now realize that the survival of consumer electronics depends on differentiated hardware developed simultaneously with excellent software and the ability to achieve first-pass success with advanced design solutions and methodologies. This cognizance is encouraging system companies to build their silicon.
To read this entire article, which appeared in the January 2023 issue of Design007 Magazine, click here.