Market Trends of Failure Analysis Industry
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- A large number of companies provide failure analysis for the electronics and semiconductor industry, considering the high usage of these services in the sector, which in turn resulted in its highest market share.
- Failure analysis in electronics and semiconductors helps identify and categorize defects during the semiconductor fabrication, such as shorts, opens, contamination, or material inconsistencies. The primary aim of failure analysis is to understand the underlying issues that lead to failures, improve manufacturing processes, enhance product reliability, and ensure compliance with quality standards.
- The continuous advancements in semiconductor technology, such as the development of smaller, more complex integrated circuits (ICs) and system-on-chip (SoC) designs, increase the complexity of failure modes, thus driving the demand for thorough failure analysis.
- For instance, in February 2024, NVIDIA's hardware products are significant engineering examples, with numerous components that function together seamlessly. As the complexity of these products increases, so does the possibility of component failures. The Failure Analysis Lab at NVIDIA focuses on resolving challenges at the silicon and board levels. This team is known for tackling challenging problems in the semiconductor industry by determining the underlying cause of malfunctions, whether the semiconductors stem from a design flaw, a production error, a reliability test failure, or foreign contaminants.
- Higher semiconductor sales result in increased production volumes. As production scales up, the likelihood of defects and failures also rises, necessitating rigorous failure analysis to maintain quality. For instance, according to the SIA (Semiconductor Industry Association), semiconductor sales in China reached USD 14.76 billion in January 2024. This figure represents substantial growth compared to January 2023, when sales in China were USD 11.66 billion.
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Asia-Pacific is Expected to Hold Significant Market Share
- Asia-Pacific is expected to grow fastest during the forecast period due to developing economies like China and India. Countries such as Japan, Thailand, and Malaysia are also home to increasing manufacturing and public-private infrastructure industries. The region's failure analysis market is experiencing growth due to several critical factors, such as the rise in urbanization and industrialization, significant investment in infrastructure development, and decreasing equipment costs.
- Asia-Pacific is united in experiencing substantial economic and population growth, which is anticipated to continue over the years and fuel infrastructure development, further supporting the market growth. Failure analysis is a forensic engineering component dedicated to identifying the underlying reasons behind infrastructure failures. Pinpointing these causes paves the way for implementing necessary measures to prevent future occurrences. The repercussions of structural failures can be severe, encompassing human, social, environmental, and financial consequences. Hence, the significance of failure analysis cannot be overstated for organizations heavily reliant on infrastructure.
- India's construction industry has surged, propelled by sustainable policies and a service-centric economic shift. The Indian government's emphasis on large-scale infrastructure investments underscores its commitment to driving growth. According to IBEF, in the 2024-25 Interim Budget, the allocation for capital investment in infrastructure increased by 11.1% to reach INR 11.11 lakh crore (equivalent to USD 133.86 billion), representing 3.4% of the GDP.
- In addition, the growing expansion of semiconductor manufacturing facilities in the region will drive the demand for failure analysis. For instance, in March 2024, The Indian government approved establishing three new semiconductor manufacturing facilities under the country's flagship incentive program.
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