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Which cliché rings more true: running a successful business has never been easy, or having a good business has never been harder? Either way, the message is clear — today's companies face relentless challenges.
Different times bear different obstacles. There is not one key to success, and there’s no guarantee how long the good thing will last. As the world develops, people change. Our culture, habits, and monetary abilities dictate the trends.
That’s why timing is everything.
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Trends can shift; however, one industry that seems relatively immune to economic turbulence and uncertainties is technology.
Technology is deeply connected to nearly everything we do and need. It powers everything from agricultural machines that bring food to our tables, to medical devices that make various diagnoses or surgeries possible, to cool gadgets we don’t actually need, but love.
Semiconductors as a super industry
Within the tech sector, one of the fastest-growing sub-industries is semiconductors. According to the Deloitte Center for Technology, Media & Telecommunications, the semiconductor industry had strong growth in 2024, with sales reaching $627 billion.
Experts predict sales of $697 billion for 2025, signaling the industry is on track to reach $1 trillion in chip sales by 2030. The industry must grow at a compound annual growth rate of 7.5% between 2025 and 2030 to hit that target.
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The stock market also reflects industry performance. As of mid-December, the combined market capitalization of the top 10 global chip companies was $6.4 trillion, up 93% year over year and 235% over two years.
However, it is important to note that the companies in the generative AI chip market have led the performance. In contrast, companies without that exposure (automotive, smartphone, computer, and semiconductor) have underperformed the average, explains Deloitte.
Next-generation semiconductor maker faces challenges
One semiconductor maker that has been facing challenges is publicly traded Wolfspeed WOLF. The Durham, North Carolina-headquartered company prides itself on being the creator of the next-generation semiconductor technology, making huge improvements in efficient and sustainable power.
Wolfspeed specializes in silicon carbide (SiC) semiconductors made from silicon and carbon. Its advantages over silicon semiconductors include a breakdown electric field strength 10 times greater than silicon, enabling the configuration of higher voltage (600V to thousands of V) power devices.