Boosting American Semiconductors and Empowering Edge Computing

As enterprise-generated data is projected to be processed outside traditional data centers by 2025, edge computing offers high-speed processing, low-latency connectivity, and secure platforms for real-time insights.

The American semiconductor industry is experiencing a significant boost in funding, with companies announcing nearly $50 billion in investments and the US government providing $52.7 billion in funding for semiconductor research, development, manufacturing, and workforce development. This investment will help American companies compete with their global counterparts, contributing to the investigation and disruption of the chip supply chain, as well as the maturity of one of the most important technologies for companies: edge computing.

Currently, East Asia accounts for 75% of the global production of advanced chips, but this number is anticipated to fluctuate as production shifts westward (PwC, 2022). America’s investment in  semiconductor research, development, and production will better equip American companies for competition against global counterparts   contributing to the investigation and disruption of the chip supply chain. This has proven a key challenge for many companies globally, enabling the maturity of edge computing.

By 2025, Gartner (2018) estimates that 75% of enterprise-generated data will be created and processed outside of a traditional centralized data center or cloud. This trend is driving the need for edge computing, which offers a route to reap the benefits of data collected from devices through high-productivity processing, low-latency connectivity, and secure platforms. Intelligent edge computing devices with embedded processors can offer advanced capabilities such as built-in analytics or AI.

"Organizations that have embarked on a digital business journey have realized that a more decentralized approach is required to address digital business infrastructure requirements," says Santhosh Rao, senior research director at Gartner (2018). Edge computing provides a decentralized approach that enables companies to process data closer to the source and leverage real-time insights to make informed business decisions.

For edge computing, sectors that have traditionally been less tech-intensive, such as energy and materials, stand to make substantial improvements in human productivity and safety. According to McKinsey (2023), edge computing could create more than $200 billion in hardware value in the next five to seven years.

The advancements in American semiconductor research and development, coupled with the potential of edge computing, offer a vast opportunity for organizations to improve productivity, safety, and profitability. 

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