MANILA – The speed and scale of advancement in digital technologies are driving demand for semiconductor products, an opportunity which Philippine manufacturers can tap into.
During the general membership meeting of Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) Thursday, Gaas Labs co-founder and president John Ocampo said current global trends include artificial intelligence (AI) and machine learning, Internet of Things (IoT), cloud computing, and 5G.
Ocampo said total demand for semiconductor products is expected to increase by 25 percent in 2025 driven by growth in automotive, consumer electronics, aerospace and defense, video surveillance, and healthcare.
He said massive growth in IoT is also seen to exceed the global population by three times in the next two years.
He added that with the expansion in digital technologies particularly cloud computing, it will require bigger data storage.
“Not only this will demand for memory, but also servers, CPU, and connectivity within the data center, as well as data center to data center,” Ocampo said.
Around 100 zettabytes of data stored in the cloud is expected by 2025, according to Cybersecurity Ventures.
The growth of 5G, which is expected to contribute USD13 trillion to the global economy by 2035, will also drive demand for semiconductor products.
SEIPI chairman Glenn Everett said the coronavirus disease 2019 (Covid-19) pandemic has accelerated digital technologies that would impact the demand for electronics and semiconductor goods.
Everett cited top technologies that are seen to be part of the future, such as online learning and digital workplace with the current distance education and work-from-home set up; telehealth as some health services are now being done through video conferencing, e-mail, telephone, or smartphone apps; contactless conveniences; AI-generated content; mixed reality, or the merging of real and virtual worlds; and electronic design automation (EDA) tools.
Market for digital workplace is expected to reach USD9 billion in 2026, with annual growth rate of 11.45 percent; online learning valuing at USD370 billion in 2026, growing annually by 8.56 percent; and telehealth, reaching to USD475.5 billion by 2026 with a growth of 26.5 percent yearly.
Contactless convenience is expected to have a market value of USD5.42 trillion by 2027, growing by 20.6 percent annually; and AI-generated content or machine learning innovation is forecasted to grow by 38.6 percent every year with market size amounting to USD152 billion in 2028.
Market value of mixed reality, with 83.3 percent annual growth rate, will reach USD225.7 billion in 2026; while that of EDA tools, increasing by 8.7 percent every year, will hit USD14.5 billion in 2026. (PNA)