The fast-paced turnover of consumer electronics has placed a significant financial strain on semiconductor manufacturing facilities. Every year, companies are forced to invest heavily in building new plants with more advanced technology. From the ground up, these facilities operate at a five-year level, and those that fail to keep up are eventually phased out. However, the rise of Internet of Things (IoT) technology has breathed new life into aging equipment and outdated factories.
Taiyo Yuden and SoftBank have introduced an ultra-low-power IoT communication module, while Sony and Altair Semiconductor have developed a module capable of operating for 10 years without battery replacement—all manufactured using older equipment. Meanwhile, Hitachi High Technologies, a subsidiary of Hitachi, launched an old equipment repair service in the summer of 2016, showcasing how legacy systems can still be valuable in today’s market.
Every time a PC or smartphone is updated, the focus is on increased computing power, faster processing speeds, and larger memory capacities. This drives the need for more advanced semiconductors. In contrast, IoT is not about standalone devices but about integrating with existing systems, emphasizing seamless communication rather than raw performance.
For example, the data transmission speed of a mobile phone is still limited, reaching only 1 Gb per second. But for systems monitoring bridge stability, a mere 1 Kb per month is sufficient. Similarly, for monitoring crop conditions in farmland or tracking temperature, humidity, and pesticide use, daily data transfer is often less than 1 Kb. These applications don’t require high-performance systems, making older semiconductors a perfect fit.
Moreover, road and bridge monitoring systems must function reliably for at least 40 years after installation, whereas mobile phones typically last only 2 to 3 years. Therefore, IoT semiconductors must prioritize long-term reliability and energy efficiency. Semiconductor production lines have extensive statistical data and experience confirming system longevity, making them ideal for the evolving needs of IoT.
Additionally, systems that have been in use for over a decade often have strong customization requirements. Each order is smaller in scale compared to mass-produced consumer electronics like PCs or smartphones. As a result, it's not cost-effective to use 12-inch wafer production lines. Instead, 4- to 8-inch lines are sufficient to meet demand, and companies like Renesas already offer such solutions, which are highly valued in niche markets like automotive electronics.
Currently, many IoT wireless modules rely on Bluetooth Low Energy (BLE) specifications. Companies like Kyocera are actively developing low-energy, low-cost communication modules to capture a growing share of the IoT market.
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