Where are chip manufacturers headed and how have the events of the past year affected their progress? We discuss this question, and how the integration of location software onto chips can be a factor in this preview of our ‘The State of the Location Industry 2021’ white paper.
Global Chip Shortage
2021 began in the midst of a global chip shortage causing semiconductor manufacturers to be unable to meet demand. Like other industries, the chip manufacturing industry has been hard hit by the COVID-19 virus, slowing down manufacturing for a period of time. COVID-19 isn’t the only reason for the current shortage of chips however. There has always been the traditional markets of PCs, servers, and mobile devices, and these markets are continuing to produce products that require chips.
Increased Production of IoT Devices
There is an increased number of IoT devices being manufactured overall, causing a shift in the demand for chips. Some of this demand can be attributed to the automotive industry, and the recent trend of OEMs beginning to build out their own chips in lieu of purchasing from a third party. According to VMR, the global IoT chip market is projected to reach $22.49bn by 2026 (CAGR 12.5%). The market is highly competitive and is moderately consolidated with large and smaller players that operate domestically and internationally, with APAC companies occupying the largest market share.
One way that chip manufacturers can differentiate themselves in a competitive market is through the integration of location directly onto a chip.
In this white paper, we look at how the chip manufacturing industry, and others that use location, have been impacted by the last year, and where we predict they will go.