How semiconductor companies are adopting IoT and AI to drive new revenue growth models

19/06/2024 20mins
Phani Kumar S


One of the fastest growing sectors in the field of technology today is the semiconductor industry. According to the SIA or Semiconductor Industry Association, in August 2018 the global sales of the semiconductors industry have reached $40.16 billion. This means that the industry has achieved an impressive 14.9 percent of the growth in its sales when compared to the data in August 2017.

In addition, the MRC or Market Research Consultant has found out that semiconductor companies have already begun to adopt IoT in a bid to revenue and achieve growth and expansion.

Driving New Revenue Growth Models through AI and IoT

It seems that MRC is not alone on their findings. Accenture, too, is supporting the fact that those who are part of the semiconductor communities are one of the most determined ones when it comes to integrating AI and blockchain technologies in their field of operations in the industry. In fact, Syed Alam who is one of the leaders in Accenture’s semiconductor practice confirmed that throughout the semiconductor industry's complex supply chain, blockchain has simplified their business operations, leveraging semiconductor chips and other related technologies.

A number of semiconductor companies have already experienced the benefits of bringing blockchain and AI to their platforms in terms of creating, scaling and managing technology-based tie-ups. By adopting IoT and blockchain, the majority of the business operations of semiconductor companies have improved. The technology has also helped them accelerate their product delivery in the market while at the same time allowing them to do so at reduced costs. That said, blockchain technologies have essentially helped redefine the semiconductor industry’s business transactions

Staying on Top of the Market

In a recent report, Power Electronics pointed out that there are several key players from the semiconductor companies who have positioned themselves to stay on top of the game across various avenues such as AI, cloud-based computing and autonomous vehicles. A number of organizations have also figured out that acquisitions and mergers offer the most effective way to drive actual growth revenue.

At the same time, however, the costs involved in chip development have remarkably continued to increase which has affected the number of designs at the advanced nodes significantly. To be more accurate, the statistics are showing that, over the past five years, the total number of advanced performance multi-core first-time Systems on Chips design has been relatively flat to only slightly up. But the design price tags have continued to raise since 40 nm steadily which make analysts alarmed with design costs’ acceleration at both 5 nm and 7 nm.

Rich Wawrzyniak, the Senior Analyst of the semiconductor marketing and consulting research company called Semico Research, has confirmed that the design that starts beyond 10 nm will be limited due to the rising costs of development. And, ironically, the total number of designs which migrate to new nodes may not be significantly different from the previous process geometry upgrades. Furthermore, Wawrzyniak has said that for such metamorphosis by a majority of the companies, the time frame for the development will become more dragged out.


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