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Manufacturing Technology Insights | Sunday, March 06, 2022
Australia has been missing out on the trillion-dollar semiconductor industry, according to an expert from Main Sequence.
FREMONT, CA: Everything involves semiconductors–satellites, smart kettles, gaming PCs, and electric cars. Most devices with a power cable will have a semiconductor because they are so crucial to current computers and microcomputers. And as more devices incorporate more semiconductors, the semiconductor business will only expand. The COVID-19 pandemic is still choking it though. To prevent the COVID from spreading, several of the factories responsible for producing chips had to close. The demand from customers did not at all help with this. At the height of the pandemic, people hurried to get technology like monitors, laptops, keyboards, mice, and webcams so they could work from home. Additionally, technology to use while waiting for orders to stay at home. A lot of this technology requires semiconductors. Although demand has been restored to more normal levels, the supply chain is still a little disorganised. And anything that uses a semiconductor is being impacted by this. Even worse, semiconductors are incredibly challenging to produce. It's challenging since there aren't many fabrication facilities worldwide, and demand from designers and fabricators is squeezing supply. A wafer of chips is normally produced by these fabricators in three to six months. This will need to alter if Australia is to gain anything from the industry. The CSIRO founded Main Sequence, Australia's deep technology investment fund. In the next four to five years, the industry is anticipated to be worth a trillion dollars. The global semiconductor market is worth over USD 500 billion annually, and Australia accounts for probably less than USD 100 million of that. The semiconductor supply chain is currently somewhat complicated. The fabricators, which are the factories where the chips are mass made, were already covered. Testing is the next step, followed by packaging. Once packaging is complete, the chips will be delivered to the facilities that ordered them. About 40 per cent of the value chain for semiconductors is related to design. The value in developing, creating, and securing the majority of the value chain, selling those items, with the manufacturing predominately taking place in the massive stacks. The chips might be designed by Australian semiconductor companies and then supplied to manufacturers abroad. Although fabricators are crucial to the production of semiconductors, he advised me to pay more attention to them in the future, possibly in five to ten years. Australia might play a key role in displacing the STM32, a semiconductor that he refers to as powering the planet.
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Australia has taken its time supporting the semiconductor sector. Government support in Australia has been weak while the US is considering the USD 52 billion CHIPS act and Europe is pouring 42 billion Euros in private and public monies into the semiconductor industry. The most ambitious idea, which aims to support entrepreneurs by acting as a finance intermediary, was just unveiled this week in NSW.
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