Introduction:
In today’s rapidly evolving digital landscape, we are witnessing the birth and growth of a new economy, the “siliconomy.”
Processing power has transcended beyond traditional computing devices. The Siliconomy is omnipresent, ingrained in every facet of our lives. And at the core of this technological revolution lies Intel, much like the silicon processor that serves as the foundation for it all.
This term encapsulates the transformative power of technology, particularly the interplay of five key technology superpowers: Compute, Connectivity, Infrastructure, Sensing, and AI. Each of these superpowers is revolutionizing how we perceive and interact with the world, fundamentally reshaping our lives and businesses. In this blog post, we delve into each of these superpowers, exploring their impact on our world and the driving force they provide for the siliconomy.
For the past half- century, the location of oil reserves defined geopolitics. The location of technology supply chains and where semiconduc- tors are built will be more important across the next five decades.
~Pat Gelsinger, CEO, Intel
How does world Economy depend on Semiconductors
The global semiconductor industry is forecasted to reach a staggering $1 trillion by 2030, signifying a substantial growth trajectory. However, this figure only represents a fraction of the genuine economic value derived from the capabilities of processing power.
Source: McKinsey 2022; SIA 2022
Looking back, the impact of semiconductor innovation over the period of 1995 to 2015 has been profound, contributing to an approximate $3 trillion boost in the global Gross Domestic Product (GDP). Beyond this direct impact, the indirect influence of this innovation has been even more significant, tallying an astounding $11 trillion in economic value during the same timeframe. These numbers underline the critical role that semiconductor advancements play in shaping our modern economy and society.
Read More: 5 Key Announcements From Intel Innovation Day
2. Global Tech Economy
In the past thirty years, global chip revenues have seen a significant increase in relevance compared to the global Gross Domestic Product (GDP). Starting at 0.25% of the global GDP, they have now doubled to exceed 0.50% in both 2020 and 2021, marking a notable growth in economic importance.
Source: WEF; Deloitte
3. How Semiconductors are a global Supply Chain
The process of wafer fabrication is dispersed worldwide, involving 39 countries directly engaged in the supply chain and an additional 34 countries participating in support functions such as equipment, etching, and cleaning tools.
Source: Accenture 2020
4. Job Creation in Siliconomy
In the United States, the semiconductor industry provides employment for over 300,000 individuals. Moreover, it plays a vital role in sustaining an additional 5 times more jobs within the broader Siliconomy.
Source: SIA/Oxford Economics Report, 2021; SIA 2022, 2023
5. Artificial Intelligence drives markets
The market could potentially witness a growth of $500 billion in the next decade due to an increasing demand for processing power, primarily driven by the need for chips related to artificial intelligence (AI).
Source: Medium 2022; McKinsey 2018
6. Connectivity drives jobs
The global economy experiences a favorable influence as technology becomes more accessible to a broader population worldwide.
Source: BBC 2019
The Five Technology Superpowers Driving Siliconomy
1. Compute:
Computing power has become ubiquitous, permeating every aspect of our lives. From smartphones to smart homes, everything is now a computer. The proliferation of computing devices has redefined how we experience the world, enabling unprecedented levels of convenience, efficiency, and innovation. Compute is the foundational superpower driving the siliconomy, serving as the engine that powers advancements in connectivity, sensing, and AI.
2. Connectivity:
Connectivity is the lifeblood of the siliconomy. We now live in an era where everyone and everything is interconnected. The internet and related technologies have created a vast global network that facilitates communication, collaboration, and access to information. Connectivity has broken down barriers and transformed industries, fostering an environment where ideas and innovations can spread and evolve rapidly.
3. Infrastructure:
The backbone of the siliconomy lies in robust and dynamic infrastructure. We are building an interconnected, reliable path for data storage and computation that leverages unlimited scale and reach. This infrastructure accommodates the exponential growth of data, providing the necessary bandwidth and lower latency required for seamless operations. The interplay of compute, connectivity, and infrastructure forms the bedrock of the digital age.
4. Sensing:
Sensing, in conjunction with advancements in automation, processing, and inference, is a superpower that has propelled us into the era of smart devices and edge computing. Low-cost, high-resolution sensors have the ability to generate massive amounts of data, essentially granting machines human-centric abilities. This convergence of technologies has enhanced our weaknesses, turning them into digital strengths, and allowing for smarter decision-making and automation.
Read more: Hotel Administration to Billion Dollar Company: Story of Qualcomm
5. AI:
Artificial Intelligence (AI) is the transformative force that turns raw data into actionable insights. With intelligence permeating various aspects of our lives, AI algorithms continuously refine and learn from the vast amounts of data generated. The symbiosis of data and compute powers the refinement of AI algorithms, enabling accurate predictions, personalized experiences, and innovative solutions that shape the siliconomy.
Everything digital is based on silicon. Today, the digital economy alone contributes to more than 15% of global gross domestic product (GDP), and in the past decade it has been growing two and a half times faster than physical world GDP.
~Pat Gelsinger, CEO, Intel
Conclusion:
The siliconomy, fueled by the five technology superpowers of Compute, Connectivity, Infrastructure, Sensing, and AI, is a testament to our drive to innovate and leverage the magic of silicon. Together, these superpowers are propelling us into a future where technology is not just a tool but an intrinsic part of our existence, reshaping industries, societies, and economies. Embracing and understanding these superpowers is essential for navigating the exciting journey that lies ahead in the ever-evolving siliconomy.
References:
[1] https://www.intel.com/content/www/us/en/corporate/siliconomy.html
