Rom Insight August 2024 3 - Flipbook - Page 5
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Semiconductor Obsolescence
Report
August 2024
Market Trends and Challenges
Market Trends
Continued Growth in AI and ML: The demand for advanced semiconductors continues to rise due
to the expansion of arti昀椀cial intelligence (AI) and machine learning (ML) applications. This has driven innovations in chip design and manufacturing.
Expansion of 5G and IoT: The roll-out of 5G networks and the growth of the Internet of Things
(IoT) are fuelling demand for high-performance and specialized semiconductor components.
Increased Investment in R&D: Companies are ramping up investment in research and
development to create more advanced, energy-ef昀椀cient, and higher-performing semiconductors.
Supply Chain Diversification: In response to past supply chain disruptions, companies are
diversifying their supply chains and considering new manufacturing locations.
Challenges
Supply Chain Disruptions: The industry continues to face challenges related to supply chain
stability and the availability of raw materials, exacerbated by geopolitical tensions and trade
restrictions.
Technological Complexity: As semiconductor technology advances, the complexity of design and
manufacturing processes increases, leading to higher costs and longer development times.
Regulatory and Trade Issues: Ongoing regulatory and trade issues, particularly between major
markets like the US and China, are affecting the industry’s global operations and market dynamics.
Environmental Impact: Growing concerns over the environmental impact of semiconductor
manufacturing are prompting the industry to seek more sustainable practices and technologies.
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