There is a dearth of talent in the chip industry, which is currently facing a global shortage, who would further hardware innovation.

Brain drain poses a direct challenge for technology development, especially in niche industries that have been monopolised – including the chip market where a shortage has caused global issues, namely in automobile production.

The assessment of the $600 billion industry comes from a report published by the World Government Summit Organisation (WGS) in partnership with Abu Dhabi’s Technology Innovation Institute (TII).

There is a dearth of talent in the industry who would further hardware innovation; there is also a brain drain that could see an exodus of young professionals to Western markets, UAE state news agency WAM reported. 

“The time for monopolies when it comes to technology leadership is almost over. Today, to ensure that technology benefits all people everywhere, we need to break this glass ceiling for the silicon and systems hardware industry and make technology accessible to the world’s emerging countries. Open systems can help these countries beat the odds and overcome their challenges to become tech-enabled like their more advanced counterparts and reap the dividends from such progress,” said Dr. Shreekant (Ticky) Thakkar, Chief Researcher, Secure Systems Research Centre, TII. 

The report said too few countries can produce semiconductors. This has created a growing state of inequality that could have major consequences for science, technology and sustainable development around the world if left unchecked.

Since 1995, the design and production of semiconductors have added $4 to $5 trillion to the world’s GDP, while its indirect contribution has reached $15 trillion.

A handful of titans who wield immense control over the semiconductor space have monopolised this giant market. Most computers and data centres depend on chips from American giants Intel and AMD, while mobile phone SIM cards are split up among Apple, Qualcomm, South Korea’s Samsung, and Taiwan’s MediaTek. Chips used in graphic design and artificial intelligence are controlled by Nvidia, while Cisco and Huawei dominate the computer systems space.

Some developing countries are beginning to catch up with advanced manufacturing. India, Malaysia and Singapore have made significant progress, thanks to advanced STEM education, close ties with the United States (US) and low-cost manpower. Companies such as Intel and Qualcomm have made significant investments to create design centres for smart chips. This has helped digital economies in Asia flourish, encouraging the growth of start-ups and new chip designs.

The report made a series of recommendations, including providing devices with open technology so all countries can benefit from the development process; accelerating testing and development; strengthening digital infrastructure; democratising the industry to enhance trust and allowing smaller companies and developing countries to review software and hardware security systems to improve quality and performance.