Semiconductor Equipment, Supplies Sourcing Up 400% Over Last Year's Quarterly Average

Christian Cavallo Mar 02, 2023

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Welcome to this week’s edition of the Thomas Index Report.

Semiconductors are essential for the rollout of robotics, automation, and other modern technologies. In this Thomas Index Report, we will explore recent trends in semiconductor design and how they impact innovation and sourcing on Thomasnet.com®.

As the basis for fundamental components, such as integrated circuits and processors, semiconductors are a required part of all electronic assemblies. Despite a short-term slowdown in 2022, the demand for semiconductor components will only increase as industrial automation, and other mechatronic applications enter further into the market.

The semiconductor computer chip market is currently dominated by two proprietary designs built by the market leaders Intel, AMD, and ARM. However, after development from UC Berkeley starting in 2010, a third public platform named RISC-V allows industrial partners to design computer chips without the confines imposed by these original manufacturers. The open-standard platform significantly lowers the barrier of entry for entrepreneurs in the chip space, spurring innovation from businesses that cannot afford the necessary licensing fees.

Will this change the balance of semiconductor manufacturing? It is difficult to say at this point, but innovation can often lead to new market opportunities and breakthroughs in manufacturing technologies.

On the Thomasnet.com® platform, we see a 62% increase in year-over-year sourcing for semiconductors and a 400% increase over last year’s quarterly average in semiconductor equipment and supplies sourcing, suggesting an acceleration in production investments.

The future deployment of robotics, automation, and other tools relies on a plentiful supply of semiconductor components. Thomasnet.com expects tandem growth in these industries as more domestic suppliers come online with lowered barriers to entry.

I’m Anna Wells, and this is the Thomas Index Report.