IN response to growing demand, the semiconductor industry has been urged anew to enhance supply chain and revisit product strategy.
Thomas Caulfield, CEO of US-based semiconductor firm Global Foundries, said in a virtual event on Monday that the accelerated shift to digitalization has fueled the demand for the industry. With this, he encouraged to make adjustments across the sector, including raw materials, equipment and packaging, among others.
“From my perspective, it starts with rethinking your supply chain and your product strategy by rebalancing resources, innovation and effort,” Caulfield said. “It requires a bold reconsideration of your product portfolio, with thereby a disruption in your strategy.”
He said these initiatives should be coupled with enhancing the research and development as well on the part of the semiconductor firms.
In addition, Caulfield called for a “new economic model” for the industry, which will be based on public-private ties and partnerships with customers, manufacturers and suppliers.
“We must collectively partner to meet this accelerated growth,” he said.
Among the industry growth drivers cited by Caulfield is fifth generation (5G) technology, which can enable next generation of digital applications.
Another is Internet of Things (IoT), which is being used to different sectors, including manufacturing and health care, he said.
Caulfield said that there are about 10 billion active devices connected to IoT and it is expected to grow to 25 billion before 2030.
Previously, the Department of Trade and Industry (DTI) urged the electronics and semiconductor industry to further explore the high-value market for IoT amid growing demand.
Trade Secretary Ramon M. Lopez explained that nearly all devices will be connected to the Internet in the future; and semiconductor chips and electronics hardware will make this happen.
He said that IoT will be integrated with other advanced technologies as well, including artificial intelligence, edge computing, virtual reality and augmented reality.
The trade chief added that the demand will be supported by industrial and consumer segments, including autonomous and connected vehicles, smart home products, smart health wearables, clean and resilient technology and gaming products, among others.
This year, the local semiconductor industry aims to grow by 7 percent despite the shipment delays threatening its supply chain.