A semiconductor is a material with specific electrical properties that allow it to serve as the foundation for computers and other electronic devices. It is typically a solid chemical element or compound that conducts electricity under certain conditions but not others this makes it an ideal medium to control electrical current and everyday electrical appliances. Semiconductors such as memory chips are the backbone and a prerequisite for any endeavour in emerging technologies. Semiconductors have influenced everything from artificial intelligence (AI) to smartphone reliance, the internet of things (IoT), and 5G. Semiconductors are used to power technologies that enrich the lives of consumers and make businesses run smarter, faster, and more efficiently.

Market Growth

The growth of the semiconductor market is attributed to the increasing consumption of consumer electronics devices across the globe. Additionally, new potential for market expansion is being presented by the development of artificial intelligence (AI), the Internet of Things (IoT), and machine learning (ML) technologies. These technologies aid memory chips in processing large amounts of data in less time. Moreover, the increasing demand for faster and more advanced memory chips in industrial applications will drive market growth over the forecast timeline. the growing popularity of electric vehicles and its rising adoption among the consumers is fueling the growth of the global semiconductor market.

COVID-19 IMPACT

Since the start of COVID-19 in early 2020, the industry has faced several challenges to maintain stable growth. The entire technology industry is rebounding from the United States-China trade war and 2019’s down cycle. The International Data Corporation (IDC) estimated a revenue contraction of approximately 7% in 2022 (with a 55% probability) for the global semiconductor industry over the forecast period.

The global semiconductor market has been severely impacted by the outbreak of the COVID-19 pandemic. With governments in several countries imposing and extending lockdowns, production and manufacturing facilities around the world have been shut down due to the crisis and a lack of labor. Furthermore, the outbreak of the pandemic has disrupted the global supply chain, thereby creating a significant gap in the supply chain. The economic impact of the pandemic has been disruptive. Key players in the semiconductor industry experienced a temporary slowdown due to a lack of skilled professionals to develop semiconductor market solutions, resulting in a decline in revenues for the fiscal year 2020 to 2021.