According to Deloitte, the investments reflect increased demand for chips against the backdrop of a prolonged supply crisis.
Of all the crises the IT industry will experience in 2021, chip shortages are one of the most worrying. A recovery is brewing for the industry in 2022, and Deloitte predicts that many types of chips will remain in short supply this year, although the reality is not as severe as it was for most of last year.
“There will be delays throughout 2022 until supply meets growing demand […] It’s not just the proliferation of consumer devices, in fact, many mechanical products in the industry are becoming increasingly digital, and many verticals are increasingly reliant on digital. In Technology, Media and Telecommunications – TMT Forecast”.
A reflection of this crisis in the market is the opportunity that venture capital funds are sniffing at start-ups in the industry. Deloitte predicts that by 2022, global venture capital firms will invest more than $6 billion in semiconductor startups.
The study also points to other trends such as the deployment of Wi-Fi 6, which will continue to outpace 5G devices, and the use of homomorphic encryption to manage confidential data.
According to Deloitte, Wi-Fi 6 devices still outperform 5G devices by a wide margin despite commercial deployments of 5G, and will likely continue to do so for years to come. At least 2.5 billion Wi-Fi 6 devices are expected to launch in 2022, compared with about 1.5 billion 5G devices.
The reason is that Wi-Fi 6 and 5G will play an important role in the future of wireless connectivity—not just for consumers, but for businesses as well. Smartphones, tablets, and PCs are some of the most popular Wi-Fi 6-equipped devices, but Wi-Fi 6 is also used in many other devices, including wireless cameras, smart home devices, game consoles, wearables, and AR/ VR headset.
AI and Sensitive Data
Deloitte estimates that 2022 will also see plenty of discussion about regulating AI more systematically, with some recommendations — although those may not come into effect until 2023 or later.
“Some jurisdictions may even seek to ban AI subfields such as facial recognition in public spaces, social punctuation and subliminal techniques. Driven by the growing urgency to protect data used in AI applications, homomorphic encryption and federated learning Emerging privacy-enhancing technologies such as the Internet will also experience tremendous growth.” Highlighted Research.
Used by leading technology companies, the homomorphic encryption and federated learning market will grow at double-digit rates to over $250 million in 2022. By 2025, this market is expected to reach $500 million.