Semiconductor innovations desired by downstream organizations worldwide 2024

A Capgemini survey in 2024 revealed that 47 percent of downstream organizations desire enhanced customization as a top semiconductor innovation. This trend reflects the growing need for tailored solutions in an increasingly complex technological landscape.

Customization drives innovation

The demand for customization is evident in the adoption of custom silicon chips, with a growing share of downstream organizations using them for their products. These custom chips allow companies to meet specific application demands, particularly in AI and IoT use cases. However, the complexity of the semiconductor supply chain poses challenges, with 67 percent of organizations citing this as a key reason for avoiding in-house chip design.

Market growth and AI influence

The global semiconductor industry continues to expand, with revenues surpassing 625 billion U.S. dollars in 2024 and projections approaching 700 billion U.S. dollars in 2025. AI technologies are driving significant growth, particularly in the server, data center, and storage end markets. This segment is expected to reach 361 billion U.S. dollars by 2030, up from 156 billion U.S. dollars in 2025. The rise of AI-specific chips optimized for advanced machine learning algorithms is also set to impact various other sectors, including smartphones, PCs, and automotive applications.