A semiconductor is a substance—usually a solid chemical element or compound—that can conduct electricity under certain conditions.
Types of semiconductors:
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Intrinsic semiconductors: Pure semiconductors without any significant dopants.
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Extrinsic semiconductors (doped semiconductors): Include donor atoms (n-type) and acceptor atoms (p-type) that modify electrical conductivity.
Semiconductors are a crucial component of modern electronics, forming an essential part of many commonly used devices such as mobile phones, tablets, PCs, radios, and more—essentially all modern gadgets that people rely on daily.
Biggest semiconductor companies (market cap, billion USD):
- NVIDIA (3,350)
- Taiwan Semiconductor Manufacturing (932)
- Broadcom (839.1)
- Samsung Electronics (275.8)
- Qualcomm (253.4)
- Advanced Micro Devices (249.9)
- Intel (130.4)
Key trends in the semiconductor industry:
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Continued growth. The global semiconductor industry is expected to witness steady growth in the coming years, driven by rapid advancements in the consumer electronics market.
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East Asia's dominance. East Asia leads the global semiconductor market, with China as the largest consumer. The region also includes South Korea and Japan, both major players in semiconductor production, as well as Vietnam. The East Asian semiconductor market is expected to expand.
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Rising demand for memory technologies. The increasing need for memory technologies from data centers will play a significant role in maintaining the integrated circuits (ICs) segment's market position.
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Growing investments. The industry is experiencing increased investments in fabrication plants (fabs), higher adoption of semiconductor ICs in automobiles, and expanding telecommunication infrastructure.
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Smaller firms driving innovation. Startups and smaller companies are emerging as key players in revolutionary semiconductor applications, particularly in technologies such as the Internet of Things (IoT) and artificial intelligence (AI).
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Larger companies cautious amid trade challenges. While major semiconductor companies remain optimistic, their outlook is more measured due to external risks, including international trade uncertainties.
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Betting on the future. As the semiconductor industry undergoes massive change, companies are making strategic investments in high-potential sectors such as IoT, 5G, AI, and automotive applications.
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Wireless communications as a key revenue driver. Wireless technology, as the backbone of a connected world, will continue to be a major source of revenue for semiconductor companies.
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Enhancing existing technology. While only top players have the resources to develop the next generation of chips, other companies are focusing on enhancing existing semiconductor technology to meet market demands. For these innovative firms, technological change is seen as an opportunity rather than a threat.
