Enabling the Hyper-connected Intelligent World – Semiconductor Engineering State of the Market Report 2021

The semiconductor industry is experiencing continuous growth in ER&D investments, driven by increasing adoption of AI chips, proliferation of IoT and connected devices, and the shift to lower technology nodes. This has happened despite the worldwide chip shortage in 2020, as enterprises and governments suffered from the disruption in the globally-dispersed supply chain and started focusing on increasing product diversity and self-sufficiency in the value chain. Moving ahead, enterprises need to be cognizant of the changes in the post-pandemic market – the evolving product demand landscape, restrictive trade environments, and the possibilities of inorganic growth.

Service providers are playing a crucial role by proactively partnering with semiconductor enterprises such as fabless companies, IDMs, and foundries across the areas of product development, fabrication, testing, and life-cycle management. They help enterprises tackle challenges in meeting evolving customer demands and managing increased complexities in the value chain due to design changes and complex validation procedures.

This research examines some of the prominent trends in the global semiconductor engineering market and provides a view on the prevalent outsourcing landscape. It also analyzes the services market on various trends, such as rising talent demand, the role of emerging technologies, and increasing player consolidation.