In 2020, at least four new challenges appeared: the COVID-19-caused supply chain disruption, increasing geopolitical tensions, intensifying conflicts in the IP space and the progress in the quantum computing area. While the sector is facing new problems, there are some significant tailwinds, too. Here, we look into both groups of factors.
On December 9-12, EqualOcean is holding the World Innovators Meet (WIM) 2020. This year, the event's main topic is 'Technology and Innovation Connect the World.' WIM2020 gathers innovators from Asia, Africa, Europe and the Americas to share their knowledge and key achievements, promoting the concept of 'Tech for Equal.'
In 2019, the growth of the semiconductor industry's downstream slowed down, affecting the global chip sales, which dropped to USD 418.3 billion that year. In 2020, at least four new challenges appeared: the COVID-19-caused supply chain disruption, increasing geopolitical tensions, intensifying conflicts in the IP space and the progress in the quantum computing area. While the sector is facing new problems, there are some significant tailwinds, too. Here, we look into both groups of factors.
In this report, EqualOcean analyzes the current trends in the global semiconductor market, diving into its essential traits and indicating the most promising startups in the field. Aiming to provide the investment community with a comprehensive guidance, we discuss the most value-added applications, also touching upon the massive technology layer of the ICT industry. Through an in-depth analysis of industry trends, we found that the status quo of private equity and venture capital (PE/VC) not only mirrors the vision of the fourth industrial revolution, but is also a highlight of the global innovation canvas.
The semiconductor market overview
1. The global semiconductor market size reached reached the bottom of a new round of silicon cycle in 2019 and rebounded in 2020.Demand shapes supply.
2. The current trends in chipmaking: the head effect of the semiconductor industry is obvious. The market is accelerating integration.The market need vitality which was provided mainly by startups.
3. The innovative and dynamic capacity of semiconductor market in in various regions: Looking at the market activity from the perspective of the investment from primary market and the establishment of chipmaking companies, the innovative and dynamic capacity of the US market has been deeply limited and has not risen for a long time; China is affected by policies and market sentiment, and the innovation activity has increased in recent years, higher than any economies.
4. Direction of development of China's semiconductor startups: gradually moving towards dedicated scenarios such as the Internet of Things, automotive application scenarios and dedicated technologies such as 5G and AI.
The IoT application market is huge, and its chip market has yet to be developed, which is more concerned by capital. The IoT chipmaking companies got the most financing events in 2020, and most of them are companies before series C.
There are not many start-up financing events for automotive chip companies in 2020, and most of them are financing chip companies established by OEMs.
The size of AI processor market is growing rapidly, and there are many investment events in 2020. The development of existing start-ups is not limited to the scene, and the rounds of these start-ups are polarized.
The scale of the 5G chip market is growing with the layout of 5G applications. Investment incidents mostly occur in RF chip companies.
The trends in future
About Global semiconductor market
In 2021 the demand of global digitization promote the demand to semiconductor market.
The semiconductor giants will accelerate the integration of the semiconductor market, and the market will gradually move towards the oligopoly.
The place where the global semiconductor capital market pays the most attention is still China because of the favorable policies.
About China
The Chinese semiconductor industry has passed the bubble period and will usher in a new round of steady growth. The capital market is paying more and more attention to Chinese semiconductor startups.
About track
The most important race track: AI processor track
Chinese digital transformation provided high demand for AI processors ; companies in AI-related AIoT and intelligent connected vehicle scenarios will receive more capital attention.
The track that is easy to seize the market: IoT track
The market of IIoT and IoMT have yet to be developed, and the prospects are unlimited.
The most fragmented market: the vehicle chip track
the most important things for this track is ecosystem, the layout of OEMs, the capital focused on startups with ecosystem.
Next 50 in Global Tech: Semiconductors
For more information, please read the report: Next 50 in Global Tech: Semiconductors(WIA 2020)(English version) or 全球半导体芯片科技创新TOP 50(WIA 2020)(Chinese version).
About WIM
Hosted by EqualOcean, the World Innovators Meet (WIM) (click to watch the online event on December 9-11, 2020) is a global event for innovators. It provides limitless opportunities to learn from and connect with the most sought-after technology pioneers.
About WIA
The World Innovation Awards (WIA) are announced at WIM to recognize game-changers across various industries and geographies. Selected by a committee of distinguished experts, entrepreneurs and investors, WIA are designed to acknowledge technology disruptors striving to make a positive impact on a global scale.
See this year's WIA lists and download the research reports in English and Chinese on EqualOcean and 亿欧智库 respectively.