Exponential growth in AI and autonomous driving spurs high-end semiconductor demand. With the AI revolution and the rise of electric and autonomous vehicles, the need for advanced semiconductors like high-bandwidth memory (HBM) and System on Chips (SoCs) is soaring. Electric vehicles, requiring a significantly higher number of semiconductors compared to traditional combustion engines, are a key factor in the market expansion.
A recent report published by KPMG in March highlighted the technology advancements in electric vehicles, Advanced Driver Assistance Systems (ADAS), and autonomous driving technologies, which have led to an increment in high-end semiconductor demand within the automotive industry. The quest for steady supply chains has resulted in long-term supply contracts and initiatives towards in-house production of automotive semiconductors. Furthermore, the AI sector is expected to follow the automotive industry in driving semiconductor sales growth, with US semiconductor leaders showing particular optimism regarding AI’s role as a major revenue generator.
As demand for premium semiconductors escalates, the need for sophisticated testing equipment rises alongside. Semiconductor tests are crucial for determining chip quality and pinpointing production issues. The rapid technological advancements in semiconductor manufacturing warrant the development of new inspection equipment capable of evaluating these innovative processes.
Leading domestic wafer test company Doosan Tesna advances SoC testing equipment investments. Preparing for high-end testing demands, Doosan Tesna has earmarked a considerable budget for the purchase of Teradyne’s UltraFLEX+ machines. ITEC, a semiconductor testing firm, has taken a significant leap by introducing the Advantest V93K-PS5000, a high-tech piece of equipment employed by renowned semiconductor corporations. This machine, capable of handling semiconductors below 5nm, is poised to expand ITEC’s product range to include AI, autonomous driving, ADAS, and next-generation application processors. Plans to procure additional units of this equipment are underway within the year.
An ITEC representative predicted that car semiconductors, currently made using legacy 30nm processes, will soon shift towards ultra-fine processes below 5nm. Being the first domestic test house to adopt this advanced equipment and possessing in-house programming capabilities, ITEC anticipates an increase in high-end semiconductor test volume and subsequent profitability improvements.
High-end semiconductor demand and investments in testing equipment are critical for tech advancement. The surge in demand for high-end semiconductors is extensively driven by the innovations in fast-growing fields such as AI, 5G, IoT (Internet of Things), and autonomous driving. Each of these technologies requires semiconductors with higher performance, energy efficiency, and reliability. High-end semiconductors like GPUs, specifically designed for AI and machine learning, are becoming indispensable in various sectors beyond the automotive industry, including healthcare, finance, and manufacturing.
One of the key questions is how the global semiconductor industry will meet the rising demand for high-end chips. An important aspect is the investment in semiconductor fabrication plants or fabs, which require billions of dollars and several years to build and become operational. This has led to concerns about potential shortages and has prompted countries to look into securing their own semiconductor supply chains.
A major challenge facing the semiconductor industry is the complexity and cost of the testing process. Advanced semiconductors have intricate designs and must work without fail in critical applications, which means testing them is both essential and resource-intensive. Consequently, the investment in advanced testing equipment, such as the Teradyne UltraFLEX+ machines and Advantest V93K-PS5000, is a response to the need for more precise and efficient testing protocols.
Controversies and concerns in the semiconductor industry include geopolitical tensions and trade disputes, which can disrupt supply chains and access to necessary raw materials and lead to a uncertainty about the industry’s capability to maintain steady growth while undergoing such shifts. The ongoing US-China trade tensions provide a context in which semiconductor supply chain security is considered a matter of national security, adding a layer of complexity to international trade and cooperation in this sector.
The advantages of investing in advanced semiconductor testing include ensuring high reliability of electronic components critical to safety in autonomous vehicles and the efficient functioning of AI systems. Conversely, the disadvantages involve the high costs associated with the acquisition and maintenance of cutting-edge testing equipment, which can be a barrier for smaller players in the industry and may lead to further consolidation among semiconductor manufacturers and test companies.
Related to this topic, you may find more information by visiting the main websites of the semiconductor companies and organizations involved or affected by these trends. These include:
– KPMG for reports on technology advancements and market trends.
– Teradyne for information about testing equipment manufacturers.
– Advantest for the latest on semiconductor testing solutions and equipment.
By exploring these sources, you can gain a deeper understanding of the implications of the demand surge in high-end semiconductors and the industry’s efforts to keep pace with testing and equipment investment.
The source of the article is from the blog macholevante.com