The semiconductor industry is the aggregate of companies engaged in the design and fabrication of semiconductors and semiconductor devices, such as transistors and integrated circuits. It formed around 1960, once the fabrication of semiconductor devices became a viable business.
The semiconductor industry is based on the foundry model, which consists of semiconductor fabrication plants (foundries) and integrated circuit design operations, each belonging to separate companies or subsidiaries. Some companies, known as integrated device manufacturers, both design and manufacture semiconductors.
Semiconductors are made from a variety of raw materials, including silicon, germanium, gallium arsenide, and indium phosphide. These materials are processed and purified to create a crystalline structure, which forms the foundation for building semiconductor devices such as transistors, diodes, and integrated circuits.
Key trends in the semiconductor industry include 5G, AI, IoT, autonomous vehicles, advanced materials, and consumer electronics. Challenges in the semiconductor industry include chip shortages, supply chain disruptions, IP wars, sustainability, rising R&D costs, and economic volatility.
The prospects of semiconductor industry includes the sales of integrated circuits (ICs), diodes, transistors, and other semiconductor products. The industry is expected to grow at a compound annual growth rate (CAGR) of around 22% between 2020 and 2025, reaching a value of $84 billion by 2025.
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