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Is the chip manufacturing industry ready for the smart world ahead?

The arrival of the intelligent world

We have already noted how intelligence has been introduced in some sectors. For example, the renowned futurist Alvin Toffler, in his classic book “Powershift,” recounted how intelligence had been introduced into the communication system that continued to benefit humanity. Toffler noted that the transport of messages began using rudimentary means such as automobiles, trails, planes, and ships. Later, faster communication tools such as the telegraph and later the telephone were invented. Progress continued and intelligence has been introduced into this system where we now have faster and more secure communication of messages.

At the end of his narration, Toffler asked, “Who knows what’s next?” According to Cornish, the author of “Futuring,” what followed since Toffler asked this important question in the late 1980s was the cyber revolution. This mega revolution brought extraordinary progress in the field of information transport around the world with a level of speed, accuracy and security that no one imagined a couple of decades ago. However, the field of communication is not exceptional. We have noticed similar efforts in other areas of our lives where intelligence has been injected.

Recently, I watched in awe the three-part series (The Body, the City, and the World) documentary film produced by the Discovery Channel. The film combined drama with science and projected what the world will look like fifty years from now. The producers backed up their claim with ongoing investigations to make sure their screening is beyond fantasy. Of course, the world may not look exactly as it is presented in these movies. However, they give us an idea of ​​the future body, city and world. The biggest sign we read from these movies is the arrival of the intelligent world faster than we ever thought.

It is exciting to see signs that the future market will be filled with smart clothing, cars, robots, and other consumer products and applications. What’s more exciting, since recently, momentum has been building from the major players. For example, six hundred IBM-led organizations met in Barcelona in November 2010 and pledged to play their part in building a smart planet. The question for the chip manufacturing industry, therefore, is whether they are well prepared and ready to play their part in making the right kinds of chips available, which will be the backbone of the intelligent world.

Main trends and their implications

During the last five decades, the chip manufacturing industry has undergone extraordinary changes. Some of the changes propelled the industry forward, while others blocked and denied the industry from reaching its peak. The following are the most significant trends and their implications for the intelligent world ahead:

Trend 1: Transistors on a single chip increasing exponentially

It is very fascinating to note how far the chip industry has come. Writers like Csanad chronicled the history and trend of the semiconductor industry. His evaluation shows that since the beginning of integrated circuits on silicon chips, the number of transistors on chips has increased dramatically. Poitras & Hodges, in their excellent article titled “The Future of Computing: Technological Trends and Forecasts,” pointed out that in 1972, Intel’s first commercial processor contained 3,500 transistors per chip and that number has grown today, where we have 5.5 million transistors. This trend is set to continue as some chipmakers propose to exponentially increase the number of transistors on a single chip the size of a fingernail. However, the ability to fit as many transistors as possible is not enough as we move towards the intelligent world. The nature of the tokens must be matched with the nature of the items themselves.

Trend 2: Highly volatile and fragile industry

The chip manufacturing industry has been very competitive. Many companies have been bought, bankrupt and have left the scene because they could not survive the fierce competition since the birth of this industry. Those that have been surviving are struggling to stay in business. It’s hard to fight for survival and at the same time work hard to rule the future you’re not sure you’ll be a part of.

Trend 3: Limited New Tickets

Chip manufacturing is a very expensive business. A lot of capital is required to build factories, buy technologies and install instruments. Although this leaves a few to grow, profit and expand the size of their market, it may diminish healthy competition among the major chipmakers. When there is no competition, there is less innovation and creativity. This, in turn, may affect the pace that the chip manufacturing industry must follow to propel us into the smart world.

Trend 4: Integral parts of consumer products

As Watson pointed out in his classic book entitled “Future files”, the computers of the intelligent world will be more intelligent than those of today. However, the chips will not be exclusive to computers. Over the past two decades, chips have begun to become integral parts of major consumer products. Many machines, instruments, and equipment require the use of chips to function intelligently. As we launch into the future, almost everything may require chips to function, operate, and align with the intelligent world. The question is, can chipmakers meet this demand and make available chips that fit all consumer products?

What’s next?

Some of the aforementioned trends may continue to affect the industry, while new trends may emerge. However, the latter is the megatrend that marks the future of the industry. Although at the research level, some reports show that smart, networked and connected clothing is coming. These garments use special types of chips to collect and process information and provide data on the health and performance of users. Krysiak also reported on chip-powered applications such as energy-conserving smart meters. Within the next fifteen years, our lifestyles will change due to the smart consumer products we use in our kitchens, offices and on the market. These devices will be more interactive and will completely change the way we live, work, relate, interact and exchange information.

However, the coming intelligent world that will change the pattern of our daily lives could only be possible if progress is made in the production of “the right kinds of” chips. To achieve this, new technologies, models and procedures are required, since it is obvious that the same chip that makes a computer smart is different from the chips that make other consumer products and applications smart.

As we rush into the future, chipmakers who envision the intelligent world and prepare along these lines have a promising future. However, they should invest in research and development to create cost-effective, environmentally friendly and energy-conserving chips. Chip-making companies must also review their long-term strategic plans and devise plans that allow them to prepare for and welcome the intelligent world in advance. They must also partner and align with other industries to create synergy.

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