Five Emerging Semiconductor Applications Reshaping the Supply Chain

Semiconductors are no longer just the backbone of consumer electronics. Their role has expanded across industries, driving innovation in systems that demand higher performance, lower power consumption, and advanced connectivity.

These emerging applications are placing new demands on the electronics supply chain — not only in volume, but in complexity, lifecycle management, and sourcing agility.

Below, we explore five areas where semiconductor use is accelerating, and what this means for OEM buyers and procurement leaders.

1. Electric Vehicles (EVs) and Power Electronics

Electric vehicles are semiconductor-intensive systems. Beyond the battery and motor control units, EVs rely on high-performance semiconductors for inverters, onboard chargers, and vehicle-to-grid communication.

Wide bandgap materials, such as silicon carbide (SiC) and gallium nitride (GaN), are replacing traditional silicon components in power conversion due to their efficiency and thermal performance. These newer materials are harder to source, more expensive to produce, and subject to longer qualification cycles.

Supply chain impact:

• Increased lead times for SiC-based MOSFETs and diodes
• OEMs competing with Tier 1s for limited allocation
• Pressure on buyers to lock in long-term supply agreements

2. AI Accelerators and High-Performance Computing

AI workloads require chips optimised for matrix operations and massive parallel processing. This has led to the rise of application-specific integrated circuits (ASICs), graphics processing units (GPUs), and tensor processing units (TPUs).

While demand is concentrated in the data centre sector, the components that support these systems, high-speed memory, FPGAs, and voltage regulators, are in short supply across adjacent markets.

Supply chain impact:

• Market consolidation among foundries focused on AI chip production
• Increased dependency on sub-7nm process nodes, mostly controlled by TSMC
• Greater volatility in passive component demand due to board-level design shifts

3. Advanced Driver Assistance Systems (ADAS)

Modern vehicles incorporate dozens of sensors, microcontrollers, and radar systems to enable ADAS features such as lane keeping, adaptive cruise control, and collision detection.

These systems are supported by automotive-grade semiconductors that must meet strict safety and thermal specifications (AEC-Q100 compliance and above). Lead times for these components have increased sharply post-2020, with some reaching over 52 weeks.

Supply chain impact:

• Priority access is often reserved for OEMs with direct supply chain control
• Requirement for traceability and long-term availability
• Lifecycle extension strategies are becoming critical for Tier 2 suppliers

4. Renewable Energy Infrastructure

From photovoltaic inverters to grid-scale battery systems, renewable energy applications are highly dependent on semiconductors — particularly in power management, switching, and grid synchronisation.

IGBTs and SiC modules are central to inverter design. Demand is rising due to national electrification targets and global investment in renewables infrastructure.

Supply chain impact:

• Procurement cycles must factor in component qualification timelines
• Increasing use of hybrid sourcing (franchise + independent) to manage allocation risk
• Component obsolescence planning is essential in long-lifecycle installations

5. Medical Devices and Wearables

High-reliability medical electronics increasingly use semiconductors for sensing, imaging, diagnostics, and patient monitoring. From wearable ECG monitors to remote insulin pumps, device miniaturisation has pushed demand for low-power SoCs, analogue front-ends, and RF components.

Unlike consumer electronics, medical device procurement cycles are governed by regulatory stability, not just performance.

Supply chain impact:

• Strong requirement for traceable, original components
• Pressure to secure last-time buys during product sunsets
• A higher value is placed on distributor quality processes over price

What This Means for Buyers

Semiconductor demand is fragmenting — not just growing. Each sector places different pressures on sourcing strategies, from lead time volatility to lifecycle support.

Buyers are adapting by:

• Working with partners who provide multi-tiered sourcing options
• Prioritising risk-based inventory strategies
• Using component lifecycle intelligence to make proactive decisions

For OEMs and EMS providers operating across these sectors, the ability to respond to emerging demand signals is now a competitive advantage. The new era of semiconductor applications brings opportunity,  but also complexity. Procurement teams must understand not just what components do, but where they’re going and why that matters.