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Key trends in the semiconductor industry

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    Fraser Innovation

    Key trends in the semiconductor industry

    Reduction in the US corporate tax: The reduction in the US corporate tax rate from 35 percent to 21 percent has created a favorable business environment for companies in the US semiconductor industry.  The act encourages investments in the US, thus, making semiconductor companies more competitive for research, design and manufacturing.
    Artificial Intelligence:  The rising demand for AI-based applications across different industries will create new growth opportunities for semiconductor manufacturers and suppliers. AI will also bring improvements in semiconductor manufacturing, by speeding up the process, increasing chip performance, reducing production costs, and increasing output.
    Transition to the 10nm node and beyond:  The shift towards smaller nodes will provide semiconductor companies with a competitive advantage by offering increased power and performance. However, the move presents significant challenges, in terms of costs and resources, which the semiconductor industry will need to address.
    Autonomous vehicles: Semiconductors will play an important role in the growth and innovation of automotive technologies used for connected cars and electric vehicles. The rapidly-evolving automotive market presents a glowing opportunity for automotive semiconductors to support increased connectivity, battery performance in EVs, enhanced sensors, and other technologies.
    Growth of 5G and AR: Similarly, the semiconductor industry will also benefit from the deployment of 5G technology during 2018-19. Additionally, increase in adoption of augmented reality/virtual reality in industrial and gaming companies will create significant growth opportunities for semiconductor companies for the future.


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