Semiconductors - The basic building block to any artificial intelligence applications.

What are Semiconductors –

Semiconductors are used in the manufacture of electronic devices, including diodes, transistors and integrated circuits. They have a wide range of current and voltage handling capabilities, and they can be integrated into complex but readily manufacturable microelectronic circuits. 

Artificial Intelligence and Semiconductors -

Semiconductors are also the basic building block to any artificial intelligence applications. Artificial intelligence (AI) applications are everywhere, from big data analytics and military equipment to facial recognition software and self-driving cars. And they bring new challenges and opportunities to the semiconductor industry every day. With AI applications gaining traction in the industrial, retail, health care, military, research, and consumer sectors, demand for specialized sensors, integrated circuits, improved memory, and enhanced processors is increasing. And this demand is changing the semiconductor supply chain by directly impacting design and manufacturing decisions.

Semiconductor Design Improvements -

AI demands do have a lasting impact on semiconductor design and development. Let’s understand why? There is a huge data processed and stored by AI applications. There is a need for speeding the movement of data in and out of memory with increased power and more efficient memory systems. There is a strong need for Semiconductor architectural improvement to address data use in AI-integrated circuits.

Semiconductors were initially used by smartphones only. With smartphones market begins to plateau, there is an opportunity for semiconductor industry. AI applications, especially big data, autonomous vehicles and robotics industries can provide them those opportunities. With PC and mobile devices, Semiconductor market was only 20 to 30% of mobile market, but with AI products, it can capture 40 to 50% of the total value of the stack.

Future of Semiconductors -

To adapt to an industry increasingly dominated by the need for AI hardware, semiconductor manufacturers will need to provide industry-specific end-to-end solutions, innovation, and the development of new software ecosystems. Semiconductor manufacturers will need to produce hardware that partners cannot find elsewhere at similar value. Such hardware along with quite h simple interfaces, development kits, and excellent technical support—will help build long-lasting relationships with AI developers. Semiconductor research and development will need to consider how sensors, memory, and microprocessors will enable and support emerging AI applications. Focusing on serving the needs of AI and the equally important IoT industry will help keep chip makers at the forefront of the industry.

As per one of the surveys, semiconductor industry in India will reach $55 billion by 2026 with more than 60 per cent of the market being driven by three industries which include smartphones, wearables, automotive components and computing and data storage.