Unveiling The Effect Of Industry 5.0 On The Semiconductor Ecosystem In Indonesia
Industry 5.0 heralds a new era where chips play a crucial role in miniaturising electronics. Amid this global shift, countries contribute to semiconductor advancements in unique ways, influenced by geopolitical, geographical, and internal dynamics, Sudip Saha from Future Market Insights explains.
The significance of the electronics and semiconductor industry is on the rise. With Industry 5.0 taking precedence, the integration of chipsets to reduce the size of electronic devices is becoming vital. To meet this demand, manufacturers are prioritising technological innovation.
Different countries have various roles to play in the progress of semiconductors. Depending on the geopolitical scenario, geographical position, and key internal factors, the contribution of the country can be determined.
In the case of Indonesia, the progress of the semiconductor sector is significantly influenced by both internal and external factors. Notably, the impact of consumer demand has been instrumental in driving the market forward.
However, various pitfalls are affecting the progress of the industry, and different parameters impede the growth of the market. Let us dive deep into key trends and factors that govern the progress of the industry. Cause-and-effect relations of such factors can shed some light on the current and prospective occurrences.
Effect Of Current Events On The Indonesian Semiconductor Industry
As far as the current events are concerned, the Indonesian government’s growing focus on initiatives like ITSI and boosting FDI is proving to be a significant factor in augmenting the semiconductor market. The International Technology Security and Innovation (ITSI) fund ensures that the local value creation gets bolstered. Along with this, the global supply chains can be diversified. The effect leverages better local production, which supports the local producers.
The government’s commitment to attracting foreign direct investments is expected to benefit producers significantly. This, coupled with the potential for lowered production costs, could lead to increased profit margins and revenue generation capacity, creating more promising opportunities for key players.
Another key initiative observed is the development of infrastructural projects. Due to this, not only manufacturers but also retailers and sellers are benefitted. This has been a key part of the ITSI implementation policy.
Along with the development of resources, the government of Indonesia focuses on elevating the skill levels of people. To achieve this goal, different specially-designed courses are dedicated to provide knowledge of the electronics and semiconductor industry.
To cater to the changing approach toward technological progress, research and development activities are more favoured. With the fund allocation for carrying out proper research related to the industry, the country has been able to create innovative and cutting-edge products.
Due to this innovation, Indonesia has become a key exporter of semiconductor goods. To compete with large-scale exporters like China, such moves have been essential. Although semiconductors hold a negligible position in exports of Indonesia, the global figures suggest that the country is ranked 27th among the top exporters of semiconductors.
Read more here at page 42
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