Skip to content

VIEWPOINT 2024: Eelco Bergman, Chief Business Officer, Saras Micro Devices

Semiconductor Packaging News Article Published Feb. 23, 2024

All indications are that 2024 is going to be an exciting year for the semiconductor industry, particularly here in the U.S., fueled largely by the rapidly growing demand for artificial intelligence (AI) capability and device solutions in data center, edge, and client applications. Gartner estimates that generative AI and large language models will result in more than 20% of new servers installed in data centers by 2027, including AI workload accelerators.

After a post-COVID semiconductor market decline of 10% in 2023 (Gartner), industry analysts are aligned in projecting a significant double-digit recovery ranging from 13% to 20%, expanding market valuation to as high as $633B (IDC). Revenue growth is forecasted across all device types, with memory and logic ICs leading the way at 45% and 10%, respectively (IDC). In addition, according to WSTS, even though all major geographic markets will show expansion, the predominant growth will be in the Americas region, forecasted at 22%.

In parallel with these robust growth projections, the semiconductor industry is also undergoing a marked geographic realignment of its supply chain as a result of ongoing geopolitical tensions. The recognition by the major global powers of the value and criticality of semiconductors to their economies and national security has resulted in legislative initiatives to stimulate and support the repatriation of their semiconductor manufacturing ecosystem.

This is particularly true here in the U.S., where we are seeing large-scale commitments from both domestic and overseas manufacturers — such as Amkor, Intel, Samsung, and TSMC — to establish advanced-technology onshore facilities, incentivized by their customers, the CHIPS Act, and other available federal and state programs.

As an emerging provider of cutting-edge, package-integrated, power delivery solutions, Saras Micro Devices is well positioned to address this confluence of the return to industry growth, the adoption of AI, and U.S. supply chain ecosystem development. Our customized multi-domain passive modules specifically address the packaging challenges facing the high-performance processors, accelerators, and network devices that are powering the advances in AI data centers.

These devices will be fabricated in the leading node foundries, including those being established in the U.S. Saras is committed to supporting the national agenda to (re)establish technology and manufacturing leadership domestically. We are opening our first production facility in the heart of the rapidly expanding greater Phoenix Silicon Desert ecosystem while continuing to invest in our Atlanta R&D center of excellence.

With the strong support of Arizona and Georgia state and city governments, as well as the leading academic institutions in those regions, we’re confident that we will be able to meet our facility and workforce expansion commitments to support both the economic development in these regions and our own long-term success.