2017 is a good year for the semiconductor industry. Semiconductor revenues are driven by higher memory prices, boosted by encrypted digital currency, data center and cloud companies driven by factors such as increased AI purchases for AI tasks, and the popularity of e-sports.

The WSTS expects global semiconductor revenue will achieve a 7% increase in 2018.

Look at the semiconductor trend in 2018

Although the semiconductor industry may not be able to replicate the double-digit growth in 2017, it will continue to grow in 2018. Let's take a look at which developments may have a positive impact on the semiconductor industry.

American company tax cuts

The U.S. Congress passed the tax reform bill in December 2017, which makes U.S. companies more competitive when facing overseas competitors. The bill reduced the U.S. tax rate from 35% to 21%. It will stimulate companies that have invested heavily in research and development and have overseas profits. The semiconductor industry welcomes this bill, which is the first tax reform in 30 years.

AI

Another major development should be the adoption of AI technology in various vertical applications. Handheld device manufacturers Apple and Samsung have begun adding AI capabilities to their smartphones. The drone market is still growing. In 2018, it may be possible to see UA-enabled drones being commercially available globally.

Many industries, from construction to healthcare, can use AI technology to improve efficiency and reduce costs. It will boost the revenue of Intel, Nvidia, Cypress Semiconductor and other companies.

10nm node

The third major development is Intel's 10nm process migration, which will allow Intel to return to the technological lead. TSMC and Samsung will migrate to the 7nm node, which is equivalent to Intel's 10nm process. The migration to smaller nodes will bring costs and performance improvements to the chip.

Self-driving car

The fourth major development trend in the semiconductor industry is the Level 3 auto-driving car. Google Waymo plans to commercialise its automated travel service in early 2018. Nvidia expects its DrivePX2 platform to provide Level 3 automation for some Tesla and Toyota cars. These will bring strong growth to Intel and Nvidia's automotive business in 2018.

5G and AR/VR

The semiconductor industry is also closely related to the development of 5G. Although revenue may not be generated in 2018, it can create significant growth opportunities for the future. As AMD and other companies strive to make wireless headsets more user-friendly, AR/VR devices are expected to grow in areas such as games.

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