Semiconductor Ecosystem: Who Really is the Boss?

If you missed the best recent articles:

• NVIDIA: The Story of the Business Model, Advantages, Results, and Future

• AMD - Has the Time Come to Turn Around?

• Global Autonomous Vehicle Race: Waymo, Tesla, Uber and the Strategic Equation

• China: Changes and Challenges

• EV Batteries - Who Really is the Boss?

• Oracle: Aspiring to Become an AI Industry Giant - Why is it Difficult?

The semiconductor industry has played and continues to play a pivotal role in the modern economy, not only providing essential components for electronic devices such as mobile phones, computers, cars, and smart home appliances, but also serving as the pillar of global technological development. Especially with the explosion of artificial intelligence (AI), semiconductor chips have become a hot and highly potential field.

The COVID-19 pandemic made remote working models widespread, thereby promoting the development of digital technology. As a result, the semiconductor industry has maintained outstanding post-COVID growth. According to the World Semiconductor Trade Statistics Organization, the global semiconductor market grew from 6.8% in 2020 to 19% in 2024, expected to currently reach a scale of 627 billion USD.

Currently, more than 10% of enterprise technology spending is used for generative AI development…

… Of which, Big Tech's AI infrastructure spending is surging, expected to exceed 250 billion USD in 2025, with the majority going into AI chips (GPU, TPU, ASICs), data centers, and network infrastructure. Microsoft, Meta lead in GPU investment, while Amazon, Google focus on AI cloud services.

On the other hand, the PHLX Semiconductor Sector index, which tracks the performance of the 30 largest US semiconductor companies, has seen an impressive increase of over 100% since the beginning of 2023.

To better understand the structure and components that contribute to this success, we will delve into the analysis of the semiconductor industry ecosystem, exploring the key links in the value chain of this billion-dollar industry.

• Overview of the Semiconductor Industry Value Chain

• Segments in the Semiconductor Industry

• New Trends in the Industry