While higher adoption of advanced nodes below 10nm could open up incremental opportunities, higher R&D investments and more frequent design cycles may strain the budgets of some players. The threat of IP theft and complications arising from the use of third-party IPs can also deter certain companies. However, the rising contract design activities are likely to open up new demand streams for commercial IP vendors. Collaborations between big technology companies may further fuel innovation and demand. The growing need for power-efficient AI/ML functionality is another area of focus.
Market Opportunity - Artificial Intelligence Hardware: New Opportunities for Semiconductor Companies
Artificial Intelligence is offering lucrative opportunities for semiconductor companies. Semiconductor companies have benefited from increased digitization and cloud usage across various industries such as healthcare, telecom, and automotive which has accelerated chip demand.
Rising demand for chips due to growing use of Artificial Intelligence (AI) will contribute significantly to the industry’s overall growth. Much of that demand is coming from the automotive and industrial markets, the two fastest-growing segments. The industrial market continues to be driven by increasing demand for AI chips in both security and healthcare sectors.
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