The semiconductor industry is undergoing a major shift, with Google planning to roll out its own processors in laptops and tablets by 2023. The company may have taken inspiration from Apple, which began using iPhone processors in 2010 and announced last year that it would replace Intel CPUs with arm-based designs. Google is using blueprints created by UK chip design giant ARM, which dominates the mobile processor market but is increasingly being used in computing chips.
The melding of AI and IoT will create countless applications in a wide variety of fields. These could include smart sensors, SMART transportation, and SMART infrastructure. With more of these components, the semiconductor industry is poised to see even greater growth. The next step in this evolution of semiconductor technology is the Internet of Things. This technology is already transforming how we live our lives.
This means that semiconductor companies in a region with a high concentration of other semiconductor companies will be more efficient in producing their products. Having multiple fabs in one region means greater productivity and greater volume discounts for manufacturers. Furthermore, by centralized manufacturing, they will be able to centralize many functions, including chip design. This will allow companies to shift employees among production lines and facilities. These companies can then share their knowledge and expertise.
A shift in demand for semiconductors has also changed the global market. East Asia has emerged as a dominant region for both memory and logic chips. Demand for these chips has soared from $240 billion in 2005 to $485 billion in 2018, with projections for growth to rise to $551 billion by 2021. In addition, the top five foundry companies, including TSMC, have increased their share to 60 percent, reflecting the shift in global demand.