“We are at a pivotal moment for the semiconductor industry,” says Brett Bonthron, Executive Vice President and Global High-tech Industry Leader at Capgemini.

“Gen AI is driving accelerated demand for chips and semiconductor companies face increasing demands from customers who want more personalised and software-centric experiences.”

Despite this awareness and the industry’s leadership in innovation challenges lie ahead.

While technological breakthroughs in semiconductors have spurred innovation in downstream industries and enabled the creation of smarter, more efficient products, fewer than three in ten downstream organisations consider chip supply to be adequate.

Additionally, confidence in semiconductor manufacturers ability to meet rising demand has been shaken by geopolitical tensions, international trade restrictions and the pursuit of sovereignty.

Seeking new strategies to navigate these challenges and meet demand should be an imperative for this industry.

Especially as demand for AI chips, custom silicon chips and memory-intensive chips is set to grow further over the next 12 months according to the report.