Recent Changes in the Global Electronic Components Industry

Electronic components are a vital part of electronic devices that help businesses reach new heights in computing, communication, and automation!

Here is a recap of the recent events pertaining to the global electronic components industry.

India Intends to Become a Global Chip Powerhouse.

India’s Minister of Electronics and Information Technology, railways, and communications, Ashwini Vaishnaw says that India wants to be among the world’s top five semiconductor producers in the next five years.

The minister is confident that India is able to achieve this goal because of the country’s ecosystem which can handle the complexity of the manufacturing process and the talent pool that consists of talented semiconductor engineers.

Southeast Asia’s digital economy is set to boom rapidly.

According to a recent report by the World Economic Forum, the South East Asian region is predicted to become a $1 Trillion Digital Economy. The region’s users have continued to top digital engagement metrics such as time spent online, mobile internet usage, and mobile app usage.

Since 2016, the number of people online has doubled across six of its biggest countries: Indonesia, Malaysia, The Philippines, Singapore, Thailand, and Vietnam. As a result, the demand for digital products and services has accelerated quickly and fuelled the growth of the digital economy. There is an increasing need for private-public partnerships to meet these demands. This includes making sure that the right infrastructures are in place, raw materials for growth such as electronic components are made available, and more.

Nvidia is a company capitalizing on this industry trend and plans to build a $ 200 million artificial intelligence center in Indonesia by partnering up with the local tech giant, Indosat Ooredoo Hutchison.

The AI Boom and the growing demand for advanced semiconductors.

The world has never been the same ever since chatGPT was released to the market, in late 2023. Soon, competitors of OpenAI rushed in with their own alternative tools further accelerating the growth of generative AI. This has propelled the speed of evolution of other generative AI use cases and has impacted the field of AI beyond machines.

Some of the used cases of AI include autonomous vehicles to navigate complex environments and revolutionizing healthcare by decoding intricate medical data for precise diagnosis.

This rapid advancement of AI and related products has triggered a gold rush for semiconductors.

According to Innovation Radar, there are over 50 use cases of advanced chip technology across a wide range of industries including technology, automobile, and telecommunication.

Semiconductor chips will not only optimize processes but also redefine standards of accuracy and efficiency and will play a major role in all future AI-driven innovations.

There’s no doubt that semiconductors will be the backbone of many major forefront technologies of the future. This necessitates companies to identify and select reliable suppliers for their semiconductor requirements.

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