Is Rising 5G a Break for Semiconductor Industry

By Embedded Advisor | Wednesday, January 15, 2020

The semiconductor industry is expected to rejuvenate with the arrival of 5G.

FREMONT, CA: The semiconductor industry is currently undergoing a downturn, which can only be ended by an even more formidable force. The deployment of 5G is this tremendous force that will propel the recovery of the semiconductor industry. 5G is expected to bring renewed growth due to the broader benefits it has to offer for the semiconductor sector. Here is more to it.

With the 5G network, the future looks brighter for the semiconductor sector. The more widespread the 5G connectivity gets, the higher will be the demand for advanced semiconductor capabilities. The introduction of 5G could push consumers towards the refreshment cycle, which will reinvigorate the semiconductor industry. According to the latest report, the semiconductor market profits plunged by 12.8% during 2019, though the market is expected to rebound with a 5.9% growth in 2020.

Much of the 5G wireless connectivity depends on the optimal use of bandwidth, specifically at millimeter-wave (mmWave) frequencies. Effective networks will need efficient power amplification, and a single semiconductor technology may not be sufficient for 5G. Discrete and integrated device semiconductor solutions will significantly nurture the platform for the proliferation of 5G. Apart from transistors and amplifiers, integrated multiple-input, multiple-output (MIMO) integrated antenna modules can also be implemented with a reduction in the costs and size of future wireless cellular base stations.

While some might consider the prospects of the semiconductor market limited to the 5G technology, this might only be the beginning. While 4G powered the mass-market adoption of mobile broadband, 5G is all about connectivity. The prospects of the semiconductor industry will not only be confined to 5G technology, but the idea of connectivity will be embedded within almost all modern devices.