After all the unexpected twists and turns of last year, 2021 looks like the year to take stock and plan stronger, more resilient operations. The unexpected crises and new demand patterns of the past year have pushed players in the semiconductor and tech space to reimagine work processes and business models. With many of the effects of 2020’s challenges still present, it’s clear that the need for creative solutions and planning will be crucial for long-term success.
As a leader in the semiconductor space, it’s important to keep a pulse on industry trends to inform your priorities and agendas. Here’s what you should know for 2021 and beyond:
Industry forecast
After a cyclical downturn in 2020, the semiconductor industry is poised for faster growth in the new year. According to the World Semiconductor Trade Statistics, chip sales are expected to grow to at least 8.4 percent in revenue in 2021. Thanks to technological advancements such as 5G wireless and artificial intelligence (AI), the industry outlook remains positive despite disruptions from the pandemic.
Energy
As data continues to swell for major digital applications, chipmakers need to address a massive undertaking— reducing power in semiconductors.
Electric systems in autonomous and electric cars require low power to accommodate more and more energy capacity. Additionally, current and future AI processing requires efficient energy to give consumers their needed privacy, data autonomy, and device features. Prioritizing power and energy as a design metric can give engineers a leg up in the race for chip performance and computing horsepower. For teams designing semiconductor IP cores, focusing on efficient energy consumption can also help control their whole tech stack from firmware to software.
Security
The acceleration of connected technologies and big data combined with product vulnerabilities have introduced more security challenges in the semiconductor industry.
Lockdown measures skyrocketed VPN encryption attacks. Ransomware outbreaks are also on the rise, accounting for over one-third of all cybersecurity incidents in 2020. Counterfeit chips continue to corrupt data and cause system malfunctions. From design to manufacturing, chip security gaps can create serious hurdles for engineers. To secure the entire lifecycle of silicon, industry leaders must provide the right methodology, IP, and design tools to meet performance needs for the next five to ten years.
More-than-Moore
For decades, Moore’s Law governed the semiconductor industry. Yet, the golden rule for the electronics industry broke down as chip scaling hit its physical limits. Designing chips at smaller nodes no longer makes sense as it costs millions of dollars, and requires big design teams.
More-than-Moore devices represent a new functional diversification of technologies where “digital electronics meet the analog world.” In this era, chip engineers need to understand how to build tighter integration between process and packaging tech. Several developments under this model are underway, including:
- integration using chiplets
- fan-out wafer-level packaging
- shifts into advanced packaging
For future power electronics and imaging and sensing technologies, More-than-Moore will play a pivotal role in driving the next phase of semiconductor innovation.
Processes and tools
Collaboration between electronic design automation (EDA) tools for newer nodes will become increasingly vital as design teams need to consider both a chip’s software and processing requirements. Between a computing chip, an automotive chip, and a mobile chip, engineers have a lot to balance for different verticals. This complexity means tighter cooperation between various skills and technologies. As engineers continue to adapt to new innovation goals, collaboration with other teams and even other foundries will be crucial in the years to come.
Ready to tackle 2021?
For the new year, resolve to stay up to speed for the next wave of changes and innovation. Subscribe to the Talent 101 blog so you don’t miss anything in the chip space.
