Over half of organisations reliant on semiconductors are concerned about chip availability in the next two years, according to a Capgemini study. The report predicts chip demand will grow nearly 30% by 2026, double the semiconductor industry’s own forecasts. In response, one-third of organisations are exploring in-house chip development to tailor semiconductors for specific needs, […]
Over half of organisations reliant on semiconductors are concerned about chip availability in the next two years, according to a Capgemini study. The report predicts chip demand will grow nearly 30% by 2026, double the semiconductor industry’s own forecasts.
In response, one-third of organisations are exploring in-house chip development to tailor semiconductors for specific needs, reduce reliance on suppliers, and retain control over intellectual property.
Demand is being fuelled by generative AI (GenAI) alongside technologies like 5G, the Internet of Things, autonomous vehicles, and augmented and virtual reality.
Nearly 60% of semiconductor companies report that technologies such as GenAI and 5G are shaping their strategies.
The rise of AI has driven demand for specialised components like neural processing units and high-performance graphics processing units, which handle intensive computations and large datasets.
Supply chain challenges remain a key issue, with only 40% of semiconductor firms confident in their resilience.
To address this, domestic sourcing is expected to increase from 40% to 47% over the next two years, and nearshoring efforts will rise by 4%.
Investment is also shifting geographically, with 75% of semiconductor companies planning to boost investments in the United States, compared to 59% in Europe.
Sustainability is a growing priority, with 60% of downstream organisations focusing on eco-friendly chip designs. The industry is embracing initiatives like energy conservation, water recycling, and waste reduction. Meanwhile, security remains critical, as nearly 60% of chip design firms prioritise cryptographic protections.
Brett Bonthron, Capgemini’s global high-tech industry leader, called this a “pivotal moment” for the industry.
“The industry should see this as an opportunity to ramp up production and adopt a ‘chip-to-industry’ approach. Investment in advanced fabrication methods, sustainable manufacturing, and AI-powered design will be key to meeting emerging demands while safeguarding intellectual property,” he added.
