The inaugural Semiconductor Industry Report explores the complex interplay between technological innovation, mineral supply chain risk, fabrication capabilities, and geopolitical uncertainty impacting this important industry. The report is the result of a collaboration between financial, technical, scientific, risk experts, and intellectual property experts. The Semiconductor Industry Report provides an in-depth analysis focused on the demand drivers, technological innovation, material science advancements, and geopolitical risks impacting stakeholders in this industry.
Daniel Principe, oversees the Industry Reports, and shares, “As an intellectual property focused firm, we are eager to share our knowledge and expertise in the Semiconductor Industry. The Semiconductor Industry Report offers a comprehensive analysis of the factors that shape this dynamic and competitive sector and showcases our desire to stay up to date with industry trends and provide valuable insight for our clients and partners”. Adding to the series of Industry Reports launched in 2018 to provide a comprehensive look at current industry trends and deal activity, the new Semiconductor Industry Report delves deeper into governmental incentives across multiple countries to encourage the development of local fabrication capabilities as well as the challenges of raw materials access, further complicated by geopolitical tensions across many regions.
The semiconductor industry stands at a crossroads characterized by robust demand driven by the proliferation of smart devices, the advent of artificial intelligence, and the expansion of 5G networks. However, it faces hurdles, including supply chain disruptions and geopolitical tensions, further complicating material supplies and fabrication components. Managing Director Richard Donohoe explains, “Critical minerals, chemicals, and industrial gases which are environmentally allowable conflict with ‘forever chemical’ regulations in both the USA and Europe. The availability of affordable skilled labor, water, and energy are also critical limitations as evidenced by facilities in the USA desert southwest and New York and England states.”
The report explores technological advancements, including the development of smaller, more powerful chips, materials science advancements, and the acceleration of quantum computing, as key drivers of future growth. “Leaps in material science and scientific innovation are creating new options to address various challenges and opportunities across the semiconductor industry,” notes Dave Jack, semiconductor technical expert within Specialty Services of Ocean Tomo, a part of J.S. Held. Jack continues, “While still subject to technical limitations, engineers and scientists seem to continually be able to extend Moore’s law by packing transistors more densely with each new process node.” Governments race to develop chip incentives with supply chain resilience remaining a top priority for the global industry. Despite the substantial capital requirements and fierce competition, government and corporate investments in research and development (R&D) underline the semiconductor industry’s strategic importance to the global economy and national security.
The report also sheds light on the strategic importance of the semiconductor industry to the global economy and national security. With countries vying for semiconductor supremacy, particularly the United States and China, the industry is increasingly recognized as a peak priority in global geopolitics.
“Semiconductors are the foundation of modern and emerging technologies. Despite short-term market fluctuations, the long-term outlook remains extremely promising,” said Sean Grant, Senior Analyst. “Our report not only maps out the current landscape but also anticipates future developments, emphasizing the critical role of intellectual property in sustaining innovation and competitiveness.”
Ocean Tomo’s report explores semiconductor fabrication, exploring the industry’s dual challenge of meeting the surging demand for semiconductors while mitigating environmental impacts. The report discusses the need for green initiatives and government policies to set new industry standards, aiming to reduce electronic waste and energy consumption in the face of rapid technological advancement.
The report also analyzes the mounting supply chain risks related to the flow of raw materials essential for semiconductor fabrication. Continued restrictions on gallium and germanium exports from China have prompted Western countries to seek self-sufficiency despite the environmental challenges associated with semiconductor production.
The Semiconductor Industry Report is essential reading for stakeholders across the technology spectrum, offering strategic insights into navigating the semiconductor industry’s challenges and capitalizing on its opportunities. Learn more about the report by contacting one of the authors:
Sean Grant | Senior Analyst, IP Disputes | +1 847 913 3638 | [email protected]
Daniel Principe |Director, Valuation & IP Strategy | +1 312 377 4426 | [email protected]