Semiconductor and beyond

Since the surge of generative AI applications in 2022, the amount of data generated and processed has expanded at an exponential rate. Servers and network equipment will likely be a backbone of intelligence permeating applications around us, powered by the continuous advancements of semiconductors.

• With the rapid growth of data traffic over the next 5 years, semiconductors in the data center market may exceed $250 billion. As the demand for smarter, more efficient servers capable of handling massive data traffic grows, AI accelerators may account for more than 50% of semiconductors used in data centers.
• Increased demand for data centers also drives the network equipment segment, as switches and routers become smarter when equipped with computing chips.
• The telecommunication equipment market might not attract as much attention as the growth of data centers, but with the worldwide spread of 5G, the gallium nitride (GaN) RF semiconductor market is poised to grow at a CAGR of 10% until 2030, eventually powering around 90% of future base stations.

Although the home appliances market is relatively saturated, the drive for AI and the Internet of Things (IoT) is changing appliances to become even smarter and provide a new consumer experience, equipped with more chips. Moreover, new appliances are gaining more market traction, such as AR/VR and wearable devices.

• The traditional appliances segment is likely to grow with the integration of AI and demand for power-efficient appliances, leading to higher-performing application processors. The application processor market in appliances is likely to grow slowly but steadily, reaching around $26 billion in 2030.
• The smart home experience can bring a new standard to the user experience. With this trend, the connectivity IC market will likely increase, with appliances using diverse connectivity standards based on circumstances, to enhance efficiency.
• Wearable devices, including hearables, smartwatches, and VR/AR gadgets, now feature an array of sensors, unlocking innovative healthcare and entertainment experiences. While microphones have had a relatively higher proportion in the sensor chip market in wearables, the role of image sensors, magnetic field sensors, and emerging sensors may expand significantly.

Although previously considered relatively saturated compared to other applications, the smartphone and PC markets are now facing new opportunities, driven by the growing demand for AI-optimized products such as on-device AI solutions.

• As a leading application for advanced semiconductors, the smartphone and PC markets are likely to transform once again with the integration of neural processing units (NPUs). The market for AI-capable semiconductors in PCs and smartphones is projected to expand from $9–10 billion in 2024 to $40–43 billion by 2030, respectively.
• LPDDR, or low-power double data rate, which balances power efficiency with performance – critical for portable PCs and smartphones which cannot be charged all the time – is expected to continue evolving. It’s anticipated that it may achieve approximately a 50% improvement in power efficiency every 2-3 years.
• In the premium smartphone segment, the importance of cameras is growing, closely tied to advancements in semiconductors. Image sensors and image signal processors (ISPs) may undergo rapid innovation, enabling pro-like photo quality.

Industries around us—including healthcare, agriculture, manufacturing, energy, and defense—are constantly evolving, driven by global demographic shifts, productivity improvements from new technologies, the rise of new products, and climate risks. Semiconductors can find their way deeper and deeper into more industries, driving efficiency and innovation across diverse industries.

• The medical and healthcare semiconductor market can reach $8.7 billion in 2030 with the expansion of medical service area from diagnosis & treatment to prevention and aftercare. Both traditional and new medical equipment may evolve with more, higher performance graphics processing units (GPUs), central processing units (CPUs) and biosensors.
• Power semiconductors are crucial to enable renewable energy growth. Especially for solar photovoltaic (PV), wind power and smart grids, which require high power, SiC can be a major player here.
• Factories, agriculture, and aquaculture are shifting toward automation, which is enabled largely by various semiconductors that gather real-time data, connect, process, and actuate them.
• Semiconductors are actively integrated throughout the flow of defense. From training to radar detection, command, and counterattack, advanced GPUs, CPUs, application-specific integrated circuits (ASICs) and RF GaN may face increased demand to reduce human casualties and increase mission success rates.