Semiconductors
The semiconductor industry is vital to many different industries. Therefore, its risks have ripple effects throughout the supply chain, shifting market demands, and evolving regulatory environments. We have continuously expanded our information base and advanced analytics to address the challenges of this vital market. Our vision is to support building resilience in the Semiconductor market.
Challenges for the Microchip Sector
The semiconductor industry and its customers have seen considerable upheaval over the last few years. After a surge in demand in late 2020 and 2021, there was a decline in late 2022 and 2023. However, 2024 is expected to bring some recovery and growth.
2021
Post-pandemic recovery, increased demand from automotive and consumer electronics, a limited number of suppliers, and constrained capacity contributed to a major supply crunch. This had severe impacts on the automotive industry, with plant shutdowns and revenue losses of approximately $60 billion.
2021
Industry players (a) re-energized capital investments (b) renewed their focus on Governments, including the U.S. and the EU, and (c) achieved stellar company financial results
2022
The tide turned with global inflation and higher interest rates, resulting in lower demand, a decline in new orders and production, and significant cuts in capex
2023
In Q3, there was a drop in global electronics PMI, Manufacturing PMI (e.g., China), and Fab utilization. Exports from Taiwan and South Korea declined, compounded by decreased Chinese consumption. Geopolitical risks and trade controls significantly impacted the supply of semiconductors. Q4 saw improving trade numbers and company performances.
2024
IDC sees year-over-year growth of 20.2% to $633 billion and capex improvements in 2H24.
Our Solution
Even as a newcomer among risk analytics SaaS solutions, Vertaeon successfully correlated and predicted the impact of multiple risks in the microchip market.
Our tools for risk and market intelligence have assessed several of the trends in advance for the last three years. Whether your company is in manufacturing, the automotive industry, or emerging technology, you’ll get the data you need to make informed decisions.
Gain a comprehensive assessment with continual monitoring of 50+ indicators, including
Financial
Legal
M&A
Divestments
Trade Controls
Country-level Policies
(e.g., vis-à-vis the pandemic)
Global Production
Investments
Natural Disasters
- Analyze various scenarios, including the reshoring trends, so you can optimize your growth amid the volatile semiconductor market.
- View gaps and vulnerabilities in the supply chain for the semiconductor industry.
- Leverage our ESG insights to better understand the environmental impact of microchip production and ensure compliance with regulatory standards.
