Mobile Devices Play a Key Role in Chip Fabrication
Supply chain constraints have affected the mobile devices industry for a few years. Companies like Samsung and Canalys saw declines in shipments that, for the most part, were due to global chip shortages. While we genuinely felt the effects of the chip shortage in 2022, things look fundamentally different for 2023 to 2025.
Mobile devices are already playing a pivotal role in chip development and fabrication. For instance, Intel recently unveiled Raptor Lake, the fastest chip for mobile devices. Mobile device demand could potentially lead us out of particular chip shortages.
When Will The Chip Shortage End?
The Mobile device industry gathered revenue worth about $378.2 billion in 2021 and is slated to accumulate approximately $597.25 billion in returns by 2028. In addition, the flexible electronics market is estimated to register a CAGR of nearly 6.85 percent from 2023 to 2028.
With the wildcard being portable device development growing in the market, such as wearables, chip fabrication could return to its prime as early as 2024. IEEE Spectrum explains, “More than 40 companies increased their chip fab production from 2020 to 2022 to around 750,000 wafers per month. The long-term trend to the end of 2024 is a 17 percent increase in capacity for 200-mm facilities.”
Growing Mobile Device Market Trends
In uncertain economic conditions, we will see remarkable growth in mobile devices because consumers want more video content and mobile shopping. According to Statista, “By 2025, more than ten percent of all retail sales in the United States is expected to be generated via mobile commerce. This figure would represent a growth of almost seven percentage points since 2018.”
Rarely do we see someone leave home without their mobile devices–especially teenagers who are constantly on a smart device attempting to be the next influencer. With the growth of 5G, Precedence Research says, “The 5G services market size is projected to surpass around $1.87 trillion by 2030 and grow at a registered CAGR of 44.63 percent over the forecast period 2022 to 2030.”
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