Talal Abu-Issa, CEO & Co-Founder of Beebolt
When you envision the future, what comes to mind?
Worldwide access to advanced healthcare. Renewable energy sources. Technology which actively enables greater opportunities. Even pushing the boundaries of space exploration.
They might be differing advancements, but these would-be innovations are central to establishing developed ecosystems and thriving societies. And they each have a common denominator.
The semiconductor industry is the unspoken powerhouse of modern innovation. From automotive to consumer goods, healthcare to energy, there are very few corners of our global infrastructure that aren’t influenced by the sector. Or won’t be in the near future.
Anyone who’s following the sector will know some of the big facts and figures demonstrating its impact – and demand. In 2024, the industry grew by nearly 20% (in comparison to 2023 figures), and that’s a growth trend that’s set to continue in the coming years. By 2030, the global semiconductor industry is projected to be a trillion-dollar industry.
Having said that, it’s a sector which is facing some significant hurdles. Limiting structures and siloed working, complexities in both production and supply, disruptions caused by climate change and geopolitics, and changes in trade policy are just a handful of challenges semiconductor companies are particularly susceptible to.
And it’s restricting innovation.
Here’s why developing the future we want – and need – hinges on first developing a better system of collaboration in the semiconductor industry.
An industry facing significant growth – and significant challenges
4 months. On average, that’s the lead time from initial design to mass producing chips. And that’s a comparatively fast timescale. In many instances, manufacturing can exceed a year and come with a shopping list of requirements and red tape.
On face value, it seems like a typical supply-demand issue. The sector has experienced chronic shortages for some years, and was thrust into the spotlight during the COVID-19 pandemic (as many industries were), when the public became hyperaware of just how delicate global supply chains could be.
But for the semiconductor industry, this ‘supply-demand’ is amplified.
For one, our global needs are increasing and becoming more urgent. Take the need for renewable energy sources as a prime example. Tackling climate change has led to increased regulation and the need to innovate more than ever before. This innovation is often led by semiconductors.
Part of this is also down to the industry becoming highly politicised. The diverse potential and impact of semiconductors for regional growth and ecosystem advancements has resulted in the sector entering governmental discussions and decision-making; a quick visit to Google will show you just how influential the tech has become.
Anyone familiar with the semiconductor industry will be equally familiar with the complexities of the production process. But as our population rises and our needs rise with it, the sector must be able to keep pace. So while these lead times may not be new figures, the question is whether we can maintain advancements (and at the rate they’re needed) with our current systems.
Where the rock meets the hard place
Disruptions and delays were once a once-in-a-while challenge, and tackled on a case-by-case basis. Now, because of expansive global trade and the ways in which businesses operate, those once-in-a-whiles have steadily become the norm. And supply chains are facing continual disruptions.
Alongside this, businesses have the added challenge of needing to access new markets to achieve competitive growth in a competitive landscape. Particularly for SMEs. But, that naturally increases the likelihood of facing these disruptions.
The ripple effect is palpable. If supplier A encounters an obstacle in their chain, then it will be felt by supplier B, C, D… you get the picture. Suddenly, you have a value chain which unceremoniously grinds to a halt.
The shift in trade dynamics won’t slow down any time soon, and these challenges are even more unlikely to go away. Today’s suppliers and trading businesses need far more fundamental support to tackle them face on if we’re going to achieve the innovation needed.
AI as an enabler for growth
Trade may traditionally be siloed, but modern tech has the unparalleled ability to completely revolutionise that without jeopardising competitive edge. By strengthening their systems of collaboration, companies can increase their capabilities, increase their resilience, and increase their ability to overcome these challenges. And far more efficiently, too.
This starts with first accessing the right data and insights, and second knowing how to use them.
AI is the ideal facilitator for this. It enables businesses of all shapes, sizes and sectors to integrate information directly into existing workflows (bonus for no downtime) to provide real-time, contextual details. Meaning teams can use the insights to work more efficiently, effectively, economically, and solve presiding issues across their supplier network.
For SMEs who are often disproportionately impacted by these challenges, AI and advanced tech can be a huge gamechanger. It can help establish a more equal playing field and reduce the barriers of entry into revenue streams and market regions. And expand team resources and skillsets.
SMEs also tend to be fairly unencumbered by red tape and complex internal workings, so they’re frequently seen as industry leaders in driving innovation. Supported by advanced AI-powered tools, this agility can clear the path for more creative solutions to common problems.
If we’re looking at the ripple effect of disruptions, then it pays to look at it the impact of resolving that, too.
Predicting, planning and even preventing these issues at the root means that all partners across the value chain benefit from the intelligence. It creates a stronger system of collaboration and harmonious working where all parties can achieve greater outcomes – individually and collectively.
Developing our future
Where global trade is concerned, isolated challenges don’t really exist anymore. Increasingly connected trade markets, routes and economies have built shared opportunities and shared obstacles.
This is particularly true for the semiconductor industry where complex production processes, global partnerships and geopolitics have highlighted the need to enhance how we operate.
Equipped with structured, contextual data and real-time insights, teams can overhaul how they collaborate with suppliers and vendors across the value chain. They can identify the biggest risks – and rewards – and act fast to adjust their direction. SMEs can boost their resources efficiently and economically, and create more reach with less CAPEX.
Greater intelligence, greater capabilities, and greater market potential.
By transforming how we manage global trade operations, we can accelerate global innovations and build healthy, sustainable, equitable and prosperous ecosystems. And with the right tools and technology, that’s not only possible – it’s inevitable.
