RESEARCH REPORT
Breaking barriers, building connections
Generative AI’s role in the semiconductor industry
5-MINUTE READ
August 20, 2024
In brief
- Revolutionizing the Industry: Discover how generative AI is set to transform design and manufacturing in the semiconductor sector.
- Navigating Challenges: Understand the barriers to AI deployment, including IP concerns and talent shortages.
- Strategic Integration: Learn about the strategic priorities that can guide companies towards successful AI integration.
33%
of global semiconductor executives believe that innovation in design and manufacturing is the top benefit that generative AI can offer to the sector.
73%
of respondents indicated that IP concerns are the biggest barrier to generative AI deployment across the semiconductor industry’s value chain.
71%
of respondents believe it will take at least three years for the semiconductor industry to deploy generative AI at scale.
74%
of respondents expect new fabs coming online to focus more on automation powered by generative AI.
Generative AI: A game changer in the semiconductor industry
Generative AI is on the brink of revolutionizing the semiconductor industry by driving innovation across design methodologies, manufacturing processes, and talent strategies. As the industry grapples with new challenges in design, manufacturing, and demand, the integration of generative AI offers a pathway to overcome these hurdles and unlock transformative value. Our survey of 300 global semiconductor executives revealed that 33% of semiconductor executives see generative AI's primary benefit in improving design and manufacturing.
Generative AI is revolutionizing the way companies approach product development, significantly reducing time-to-market.
Despite challenges such as IP concerns, noted by 73% of respondents, and a deployment timeline of at least three years, anticipated by 71%, there is a strong shift towards more technologically advanced manufacturing environments. About 74% of new fabs are expected to focus more on automation powered by generative AI.
Generative AI is not just changing the game; it's redesigning the entire playing field of the semiconductor industry.
Padampreet Singh / Managing Director High Tech Global Data & AI Lead
Collaboration and ecosystem integration:
75%
of industry leaders believe that collaborative platforms significantly boost the value derived from generative AI.
By fostering a collaborative environment, generative AI facilitates a seamless exchange of ideas and innovations across the value chain, enhancing the industry’s collective strength and agility.
Empowering talent through generative AI
Generative AI also addresses the talent shortage in the semiconductor industry by upskilling and reskilling the workforce. Companies are investing in AI awareness programs and training initiatives to boost productivity and augment current skill sets. To fully leverage the potential of generative AI, semiconductor companies are proactively addressing their talent gaps.
By enhancing precision and efficiency, AI is setting new standards in semiconductor industry.
Marco Addino / Managing Director Semiconductor EU Lead
No-regrets and strategic bets:
Navigating its biggest opportunity and challenge, the semiconductor industry is focusing on strategic investments in generative AI. According to our survey, technology is seen as both a significant opportunity (45%) and a major challenge (37%).
The industry's path forward includes "no regret" investments—high value, low risk, quick returns at critical value chain points—and "strategic bets" that promise long-term advantages and reshape operations.
Choosing the right use cases at the right time is crucial for leveraging generative AI's transformative potential effectively.
Strategic actions for leveraging generative AI
To fully harness the potential of generative AI, semiconductor companies must take action:
Find the right data foundation and “no-regret” initiatives to deliver quick wins. Show results, generate excitement and share successes. Think big, start small.
Take internal momentum with generative AI and find opportunities to act externally with ecosystem partners. Collaboration will be cornerstone of success.
Generative AI can reinvent work and reshape the workforce. Continuous experimentation and engagement across the value chain is key to growth and performance.
Go beyond skilling: invest in learning and identify opportunities to accelerate economic value, increase productivity and make work more meaningful.
Generative AI is more than a technological upgrade; it is a strategic imperative for the semiconductor industry. By integrating AI into core operations, companies are not only solving immediate challenges but are also setting the stage for long-term success and industry leadership