INTERNATIONAL: The global semiconductor market is projected to surpass $1 trillion by 2030, but technology companies must prepare to navigate an increasingly volatile geopolitical landscape, according to a new report by PwC.
According to a report featured in Manufacturing Asia, PwC advises companies to prioritise diversification in their manufacturing and supply chain strategies to thrive amidst uncertainty. By spreading production across multiple sites and suppliers, businesses can better mitigate risks associated with bottlenecks or disruptions that may affect operations.
Additionally, firms must adopt a more sophisticated approach to risk management by closely analysing potential vulnerabilities in their semiconductor components. This proactive strategy will be essential in an era where global supply chains face increasing pressure.
The report also highlights the growing challenge of government-driven localisation efforts. As nations push for more domestic chip production, tech companies will face the difficult task of meeting localisation requirements while maintaining operational efficiency. PwC suggests that businesses adapt their products only when absolutely necessary, while others should consider region-specific solutions or drop-in replacements for certain semiconductors.
Perhaps the most pressing concern, however, is talent. A study by Strategy&, PwC’s global strategy consultancy, reveals that Europe’s semiconductor sector alone will need 350,000 additional professionals by 2030. To meet this demand, companies must invest in robust talent pipelines, ensuring the development of a workforce equipped with the specialised skills needed to fuel the sector’s growth. This challenge extends beyond Europe, as players across the globe will need to build significant talent reserves to stay competitive in the rapidly evolving semiconductor landscape.
As the semiconductor industry approaches a $1 trillion market value, tech firms must act strategically and nimbly to overcome geopolitical risks, navigate localisation pressures, and cultivate the skilled workforce needed to support this technological revolution.