Semiconductor Strategy Calls for a Pivot: Compound Semiconductors as the Guiding Light

Future Growth and Market Projections

The business outlook for compound semiconductors is highly promising, with robust market projections indicating substantial growth potential. The superior electronic properties of compound semiconductors position them as a strategic choice for meeting the evolving demands of various industries.

Rethinking Semiconductor Investment Strategies
Given these challenges, traditional investment strategies centered solely on silicon-based technologies, such as constructing multiple lower-node silicon fabs, may not yield optimal results. Instead, it is imperative to leverage strengths and pivot towards enhancing expertise in compound semiconductors (CS).
Leveraging Existing Research and Expertise in Compound Semiconductors
Many regions boast a robust research base in CS, with specialized companies and institutions focused on CS research. This existing foundation provides a significant advantage in developing and implementing strategies to capitalize on the potential of compound semiconductors.
Government Initiatives and Strategic Objectives
Government initiatives underscore the importance of building on existing strengths in compound semiconductors, design, and R&D. Targeted measures aimed at enhancing skills and financing for the semiconductor sector are crucial for fostering innovation and creating high-paying jobs.

Challenges Facing the Semiconductor Sector

In recent years, the semiconductor industry has encountered significant pressure due to market distortions and geopolitical tensions surrounding technology. The escalating global demand for chips has led to a surge in investment, with nations competing for influence and control over critical semiconductor technologies

However, compared to regions such as Japan, the EU, India, and the US, certain areas have lagged in their semiconductor strategies. This discrepancy can be attributed in part to the limited influence of domestic companies in shaping these strategies, with top semiconductor players often being controlled by entities outside the respective regions.

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