If the much-publicized semiconductor supply chain disruptions have hampered your company’s ability to make its products or get the capital equipment you need to make them, you are in for a bit of good news.
A new study from professional services firm Accenture says 76 percent of semiconductor executives expect the industry’s supply chain challenges to ease by 2024. But other storm clouds are on the horizon.
The report is based on a global survey of 300 senior semiconductor executives who evaluate their companies’ supply chain outlooks and innovation roadmaps.
Respondents cited challenges that could affect their ability to innovate, even as the lingering effects of COVID-19 on the supply chain wear off. The other challenges identified most often were geopolitics (cited by 48 percent of respondents), cybersecurity threats (42 percent), the changing competitive landscape (39 percent) and talent shortages (35 percent).
Faced with a changing industry landscape, 65 percent of the executives said they believe that the rate of Moore’s law — the principle that states the number of transistors in an integrated circuit doubles about every two years — will slow down by 2024. In addition, 56 percent believe that promoting strong IP protection and enforcement is one of the best ways to enhance the industry’s resilience moving forward.
“As the demand for chips slows down amid inflationary concerns and an easing of the chip shortage, semiconductor businesses face a new set of challenges driven by geopolitics and a growing talent shortage,” said Syed Alam, global lead of Accenture’s High Tech industry practice. “To succeed, companies need to balance being resilient in tough times with continued investments in innovation.”
The report identifies areas for investment that will drive future semiconductor growth, including:
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The Metaverse – 67 percent of executives believe that semiconductors are the most critical technology to the development of the metaverse, and 44 percent expect to allocate more than a fifth of their semiconductor production budget to the metaverse by 2024.
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Digital Health – Fitness trackers and smart watches represent the biggest growth opportunity for the industry, as these popular devices will benefit most from improved connectivity enabled by semiconductors.
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Mobility – Extended chip shortages and cost concerns are cited as the biggest roadblocks to mobility’s future, leading 93 percent of executives to believe that car manufacturers should partner with semiconductor and technology businesses to develop next-generation mobility technologies.
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Sustainability – 93 percent believe that sustainability initiatives will have a positive impact on profitability and create more sustainable consumer products. Sustainability was also cited as the area most likely to play the largest role in the semiconductor value chain within the next five years.
Accenture plc is an information technology (IT) services and consulting firm based in Dublin with reported revenues of $61.6 billion in 2022.
To learn more, read the full report.