DOCSLIB.ORG

COVID-19: Semiconductor Industry Resilience | Accenture

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
COVID-19: Semiconductor Industry Resilience | Accenture Semiconductor Companies: Business Resilience in the Wake of COVID-19 A guide to the disruptive impacts & practical actions for semiconductor companies to take May 2020 Covid-19: What to do Now, What to do Next NOW NEXT We’re all in this together COVID-19 has turned into a global crisis, evolving at unprecedented speed and scale. It is creating a universal imperative for governments and organizations to take immediate action to protect their people. It is now the biggest global event—and challenge—of our lifetimes. As such, it is changing human attitudes and behaviors today and forcing organizations to respond. However, the need to respond won’t end when the virus’s immediate threat eventually recedes. What this means for the semiconductor industry COVID-19’s disruptive impacts are being felt in the near term and the full long- term impacts are still unknown. Companies are quickly needing to evaluate impacts on three fronts: supply chain, market demand and workforce. • Global supply chains have disrupted as the virus spreads across the globe bringing uncertainly over quarantine durations • Product demand is shifting across ASICS, memory, sensors, etc. while consumer behavior changes rapidly and with future volatility • Workforce is affected by stay-at-home orders and the uncertainly of how long business as usual will be suspended for No industry is immune to the impacts of COVID-19 , including the semiconductor industry. Overall, 2020 semiconductor revenue projection has been reduced by $55.0 billion, to $415.4 billion, and annual growth for 2020 has been reduced from 12.5% to 0.9%. Impact to semiconductor revenue projections for 2020 by end-use application: • Smartphone: -12.5% • PC & Tablet: -5.8% • Automotive: -24.0% • Server: +16.7% Gartner: Forecast Alert: 2020 Semiconductor Revenue Downgraded by $55 Billion Due to COVID-19 Impact (26 Mar 2020) Resilience in semiconductors Semiconductor companies have exhibited resilience in previous economic downturns Great Recession: 2007-2009 1 20% 2 PHLX Nov 2008Mar 2009 10% Semiconductor Index, 11.7% 0% -10% S&P500, -11.5% -20% RESILIENCE IN SEMICONDUCTORS Market ReturnsMarket -30% •1 Semiconductor stocks showed resiliency, leading the recovery during the Great Recession of 2007-2009 and the subsequent year • Philadelphia Semiconductor Index (SOX) troughed in November 2008, -40% 2 while broader S&P500 troughed in early March 2009 •3 Though the causes and reactions to COVID-19 may be different, -50% semiconductor players are showing similar market signs (e.g. correlation convergence, P/E compression) and risk-aversion mentality as in 2008 -60% •4 Semiconductors are typically strong leading indicators of recovery, but the recovery speed and magnitude are dependent on contagion impact • Recovery from COVID-19 will likely follow after several quarters of PHLX Semiconductor Index (SOX) S&P500 5 depressed results and be driven by future technology drivers, such as 5G Source: Bloomberg Intelligence, Yahoo Finance How the crisis impacts semiconductors DEMAND DISRUPTION SUPPLY DISRUPTION WORKFORCE IMPACT Surge in demand for cloud/datacenter services, WFH Chip fabrication resilience given cleanroom Fast and massive shift to WFH required products (ex: smart home devices, laptops, etc.), and environments medical devices Labor intensive OSAT operations disrupted Rise in the need for employee and employer given travel restrictions workforce flexibility and remote working tools Slowdown in production by Auto OEMs resulting in demand variation Shortages of critical components/materials given SHORT-TERM global supply chains and varying impacts and Extended period of social distancing and “shelter IMPACT timing of COVID globally in place” impacts employee morale Reduction in demand for mobile phones and consumer electronics, driven by loss of income and Logistics delays and challenges have given stay-at-home orders impact to transport Economic stimulus expected to bolster consumer Investment in digital supply chain and control tower More robust WFH and “elastic workforce” spending, bringing demand levels back capabilities to improve supply network agility capabilities Accelerated demand for cloud and infrastructure to support distributed workforce Further diversified supply chains across suppliers Many employees will value enhanced flexibility of and locations—eliminating choke points WFH options Lower than expected auto sell-through in distribution Ramped up factory automation will reduce impact channels and order push outs that labor shortages have on supply MID/LONG- TERM IMPACT Shifting consumer priorities and buying patterns given Product roadmap uncertainty, changes to product economic uncertainty schedules and go-to-market strategies IMPACT Favorable Mixed/ Neutral Negative Demand disruption: What to expect in each subsector COMPUTING & IOT & NETWORK & AUTOMOTIVE CONSUMER STORAGE INDUSTRIAL COMMUNICATIONS Slowdown in production by Strong datacenter and PC Lower demand for mobile Greater bandwidth demand Surge in medical devices as Auto OEMs resulting in demand given WFH and phones and consumer and increase in data center global supply chains pivot demand variation study from home electronics fueled by workforce upgrades due to growing loss of income and quarantines online presence (WFH, streaming, etc.) SHORT- TERM Consumer sentiment on Strong demand in certain Decrease in demand for Reduction in capital budgets Public perception of data immediate needs given smart home categories IMPACT consumer and small and delays in planned projects infrastructure as an essential reduced mobility impacting (security, smart speaker) and business systems utility (e.g. work from home) vehicle sales consumer health Lower than expected sell- Accelerated demand for Planned ramp and consumer Accelerated demand for Planned ramp of 5G remains through in distribution cloud and infrastructure to adoption of 5G unlikely to smart manufacturing to highly visible and a national channels and order push outs support distributed workforce change enable more digital workforce priority MID/LONG - TERM Consumer priorities and Rapidly changing consumer Uncertainty in post crisis buying IMPACT buying patterns given the demand patterns given patterns given pent up demand economic uncertainty immediate vs. long term needs coupled with economic fears IMPACT Favorable Mixed/ Neutral Negative Supply disruption: Understanding the many layers Direct Customer To address the effects of disruptions Foundries Assembly Logistics like COVID-19, companies should recognize the unique characteristics IDMs Test and capabilities of each step in the FAB direct manufacturing process, and EDS/Probe OSAT SBT Distribution how their global supply bases are impacted. Marketing & Sales Further, companies should look Raw Silicon PCB Eval. HW beyond their immediate supply base and comprehend staggered Probe Cards ATE/Benches Segments disruptions to indirect components and suppliers as COVID-19 spreads. Reticles Test Filters CUSTOMERS Critical Semiconductor MFG Equipment Needs Finally, companies should consider Raw Materials the relationship between these Channels products and services as well as the Substrates shifting customer requirements to serve their broad array of unique Indirect needs. Semiconductor companies operate in a complex ecosystem, working across the value chain with numerous raw material, assembly, test, package and equipment suppliers and partners globally. Workforce impact and enablement: Semiconductor companies ahead of the curve CULTURE AND ELASTIC VIRTUAL WORK SEAMLESS RELIABLE ADOPTION COLLABORATION ENVIRONMENT NETWORKING SECURITY Given the globality and Rapidly deploy and scale Evaluate network Enable reliable and secure With IP protection top-of- complexity of the collaboration tools requirements, remote network mind, enable appropriate semiconductor supply across the organizations accelerate device connectivity to employees’ security measures for chain, many companies to work with customers, deployment and scale homes and standardize virtual work already have distributed suppliers and partners. virtual environments ways of integrating this environments. Automate workforce tools and to support increased technology with customers with endpoint capabilities in place around mobile/WFH demand. and partners. management detection the globe that the and response, and deploy workforce is familiar with. supporting business processes. 8 Key actions: A holistic plan PHASES TRIAGE & PRIORITIZE SENSE & RECONFIGURE SCALE & MAINTAIN • “War room” mindset • Enable multi-source strategy with • Diversify supply chain to mitigate geographic diversity dependencies on specific countries • Understand and quantify exposure—push SUPPLY and pull in manufacturing accordingly • Leverage past supply disruptions to • Update and maintain business enable business continuity plans continuity planning CHAIN • Understand direct and indirect supply (earthquakes, tsunami) networks and conduct scenario-modeling • Invest in smart manufacturing capabilities and expand remote access capabilities, particularly in OSATs • Analyze shifts in product demand • AI-supported cash and working • Explore alternative revenue streams (aaS, volumes and revise product capital management subscription) schedules to meet immediate needs DEMAND • Improve demand planning and • Expand into ecosystem solutions to bring • Prioritize supply and sales efforts to scenario modelling capabilities demand planning and technology high priority/value/critical demand portfolio planning together •
Load more

Recommended publications
  • Quantum Imaging for Semiconductor Industry
    Quantum Imaging for Semiconductor Industry Anna V. Paterova1,*, Hongzhi Yang1, Zi S. D. Toa1, Leonid A. Krivitsky1, ** 1Institute of Materials Research and Engineering, Agency for Science Technology and Research (A*STAR), 138634 Singapore *[email protected] **[email protected] Abstract Infrared (IR) imaging is one of the significant tools for the quality control measurements of fabricated samples. Standard IR imaging techniques use direct measurements, where light sources and detectors operate at IR range. Due to the limited choices of IR light sources or detectors, challenges in reaching specific IR wavelengths may arise. In our work, we perform indirect IR microscopy based on the quantum imaging technique. This method allows us to probe the sample with IR light, while the detection is shifted into the visible or near-IR range. Thus, we demonstrate IR quantum imaging of the silicon chips at different magnifications, wherein a sample is probed at 1550 nm wavelength, but the detection is performed at 810 nm. We also analyze the possible measurement conditions of the technique and estimate the time needed to perform quality control checks of samples. Infrared (IR) metrology plays a significant role in areas ranging from biological imaging1-5 to materials characterisation6 and microelectronics7. For example, the semiconductor industry utilizes IR radiation for non-destructive microscopy of silicon-based devices. However, IR optical components, such as synchrotrons8, quantum cascade lasers, and HgCdTe (also known as MCT) photodetectors, are expensive. Some of these components, in order to maximize the signal-to-noise ratio, may require cryogenic cooling, which further increases costs over the operational lifetime.
    [Show full text]
  • Global Semiconductor Industry | Accenture
    GLOBALITY AND COMPLEXITY of the Semiconductor Ecosystem The semiconductor industry is a truly global affair. Around the world, semiconductor chip designers use intellectual property (IP) licenses and design verification to provide designs to wafer fabricators, which use raw silicon, photomasks, and equipment to create chips for package manufacturing to assemble with printed circuit board (PCB) substrates for delivery to end customers. In fact, components for a chip could travel more than 25,000 miles by the time it finds its way into a television set, mobile phone, automobile, computer, or any of the millions of products that now rely on chips to operate (Figure 1). 2 | Globality and Complexity of the Semiconductor Ecosystem Figure 1: Components for a chip could travel more than 25,000 miles before completion IP Licenses Euipment Modules Package Raw Silicon Manufacturing PC Substrates Asembly Standard Products and Test components Wafer Fabrication Equipment Chip Design Design Verification Photomask Wafer Manufacturing Fabrication The Global Semiconductor Alliance (GSA) and Accenture have teamed up to conduct a joint study on the globality and complexity of the semiconductor ecosystem to explore the interdependencies and benefits of the cross-border partnerships required to produce semiconductors, as well as to illustrate what’s needed to keep this global ecosystem operating efficiently and profitably. Industry executives can use this study to inform their company strategies, as well as to educate non-semiconductor partners, including policy makers, on the nature of their business to promote a better understanding of the important role semiconductors play in everyday life and on the globe-spanning ecosystem that’s needed to produce them.
    [Show full text]
  • The Next Growth Engine for the Semiconductor Industry
    www.pwc.com The Internet of Things: The next growth engine for the semiconductor industry A study of global semi­ conductor trends and powerful drivers behind them – special focus on the impacts of Internet of Things. The Internet of Things: The next growth engine for the semiconductor industry A study of global semi­ conductor trends and powerful drivers behind them – special focus on the impacts of Internet of Things. The Internet of Things: The next growth engine for the semiconductor industry Published by PricewaterhouseCoopers AG Wirtschaftsprüfungsgesellschaft By Raman Chitkara, Werner Ballhaus, Olaf Acker, Dr. Bin Song, Anand Sundaram and Maria Popova May 2015, 36 pages, 8 figures The results of this survey and the contributions from our experts are meant to serve as a general reference for our clients. For advice on individual cases, please refer to the sources cited in this study or consult one of the PwC contacts listed at the end of the publication. Publications express the opinions of the authors. All rights reserved. Reproduction, microfilming, storing or processing in electronic media is not allowed without the permission of the publishers. Printed in Germany © May 2015 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. MW-15-2285 Preface Preface The ever-expanding array of cutting-edge devices such as smartphones, tablets, ultramobile, electric cars, new aircraft, and wearable devices, is driving a constant expansion of the number of semiconductor components we use in our daily lives.
    [Show full text]
  • Semiconductor Science for Clean Energy Technologies
    LEVERAGING SEMICONDUCTOR SCIENCE FOR CLEAN ENERGY TECHNOLOGIES Keeping the lights on in the United States consumes 350 billion kilowatt hours of electricity annu- ally. Most of that light still comes from incandescent bulbs, which haven’t changed much since Thomas Edison invented them 140 years ago. But now a dramatically more efficient lighting tech- nology is seeing rapid adoption: semiconductor devices known as light-emitting diodes (LEDs) use 85 percent less energy than incandescent bulbs, last 25 times as long, and have the potential to save U.S. consumers a huge portion of the electricity now used for lighting. High-performance solar power plant in Alamosa, Colorado. It generates electricity with multi-layer solar cells, developed by the National Renewable Energy Laboratory, that absorb and utilize more of the sun’s energy. (Dennis Schroeder / National Renewable Energy Laboratory) How we generate electricity is also changing. The costs of to produce an electrical current. The challenge has been solar cells that convert light from the sun into electricity to improve the efficiency with which solar cells convert have come down dramatically over the past decade. As a sunlight to electricity and to reduce their cost for commer- result, solar power installations have grown rapidly, and cial applications. Initially, solar cell production techniques in 2016 accounted for a significant share of all the new borrowed heavily from the semiconductor industry. Silicon electrical generating capacity installed in the U.S. This solar cells are built on wafers cut from ingots of crystal- grid-scale power market is dominated by silicon solar cells, line silicon, just as are the chips that drive computers.
    [Show full text]
  • Semiconductor Industry
    Semiconductor industry Heat transfer solutions for the semiconductor manufacturing industry In the microelectronics industry a the cleanroom, an area where the The following applications are all semiconductor fabrication plant environment is controlled to manufactured in a semicon fab: (commonly called a fab) is a factory eliminate all dust – even a single where devices such as integrated speck can ruin a microcircuit, which Microchips: Manufacturing of chips circuits are manufactured. A business has features much smaller than with integrated circuits. that operates a semiconductor fab for dust. The cleanroom must also be LED lighting: Manufacturing of LED the purpose of fabricating the designs dampened against vibration and lamps for lighting purposes. of other companies, such as fabless kept within narrow bands of PV industry: Manufacturing of solar semiconductor companies, is known temperature and humidity. cells, based on Si wafer technology or as a foundry. If a foundry does not also thin film technology. produce its own designs, it is known Controlling temperature and Flat panel displays: Manufacturing of as a pure-play semiconductor foundry. humidity is critical for minimizing flat panels for everything from mobile static electricity. phones and other handheld devices, Fabs require many expensive devices up to large size TV monitors. to function. The central part of a fab is Electronics: Manufacturing of printed circuit boards (PCB), computer and electronic components. Semiconductor plant Waste treatment The cleanroom Processing equipment Preparation of acids and chemicals Utility equipment Wafer preparation Water treatment PCW Water treatment UPW The principal layout and functions of would be the least complex, requiring capacities. Unique materials combined the fab are similar in all the industries.
    [Show full text]
  • Mckinsey on Semiconductors
    McKinsey on Semiconductors Creating value, pursuing innovation, and optimizing operations Number 7, October 2019 McKinsey on Semiconductors is Editorial Board: McKinsey Practice Publications written by experts and practitioners Ondrej Burkacky, Peter Kenevan, in McKinsey & Company’s Abhijit Mahindroo Editor in Chief: Semiconductors Practice along with Lucia Rahilly other McKinsey colleagues. Editor: Eileen Hannigan Executive Editors: To send comments or request Art Direction and Design: Michael T. Borruso, copies, email us: Leff Communications Bill Javetski, McKinsey_on_ Semiconductors@ Mark Staples McKinsey.com. Data Visualization: Richard Johnson, Copyright © 2019 McKinsey & Cover image: Jonathon Rivait Company. All rights reserved. © scanrail/Getty Images Managing Editors: This publication is not intended to Heather Byer, Venetia Simcock be used as the basis for trading in the shares of any company or for Editorial Production: undertaking any other complex or Elizabeth Brown, Roger Draper, significant financial transaction Gwyn Herbein, Pamela Norton, without consulting appropriate Katya Petriwsky, Charmaine Rice, professional advisers. John C. Sanchez, Dana Sand, Sneha Vats, Pooja Yadav, Belinda Yu No part of this publication may be copied or redistributed in any form without the prior written consent of McKinsey & Company. Table of contents What’s next for semiconductor How will changes in the 3 profits and value creation? 47 automotive-component Semiconductor profits have been market affect semiconductor strong over the past few years. companies? Could recent changes within the The rise of domain control units industry stall their progress? (DCUs) will open new opportunities for semiconductor companies. Artificial-intelligence hardware: Right product, right time, 16 New opportunities for 50 right location: Quantifying the semiconductor companies semiconductor supply chain Artificial intelligence is opening Problems along the the best opportunities for semiconductor supply chain semiconductor companies in are difficult to diagnose.
    [Show full text]
  • Building America's Innovation Economy
    BUILDING AMERICA’S INNOVATION ECONOMY Maintaining a vibrant U.S. semiconductor industry is critical to America’s continued strength. For over 40 years, SIA has represented the semiconductor industry, one of America’s top export sectors and a key driver of our country’s economic strength, national security, and global technology leadership. SIA members account for 95 percent of U.S. industry sales and 78 percent of all global sales. SEMICONDUCTORS ARE THE BRAINS OF MODERN ELECTRONICS, enabling advances in medical devices and health care, communications, computing, defense, transportation, clean energy, and technologies of the future such as artificial intelligence, quantum computing, and advanced wireless networks. THE U.S. SEMICONDUCTOR INDUSTRY IS THE WORLDWIDE INDUSTRY LEADER with about half of global market share and sales of $193 billion in 2019. THE SEMICONDUCTOR INDUSTRY DIRECTLY EMPLOYS NEARLY A QUARTER OF A MILLION PEOPLE IN THE U.S. and supports more than one million additional U.S. jobs. NEARLY HALF OF U.S. SEMICONDUCTOR MANUFACTURERS' PRODUCTION IS DONE IN THE UNITED STATES, and 19 states are home to major semiconductor manufacturing facilities. SEMICONDUCTORS ARE A TOP-5 U.S. EXPORT, and more than 80% of U.S. semiconductor companies’ sales are to overseas customers. The United States exported $46 billion in semiconductors in 2019 and maintains a consistent trade surplus in semiconductors, including with major trading partners such as China. THE U.S. SEMICONDUCTOR INDUSTRY ANNUALLY INVESTS ABOUT ONE-FIFTH OF ITS REVENUE INTO R&D ($40 billion in 2019), which is the second-highest share of any major U.S. industry, behind only the pharmaceutical industry.
    [Show full text]
  • University-Industry Partnerships in Semiconductor Engineering
    Paper ID #9363 University-Industry Partnership in Semiconductor Engineering Dr. Tim Dallas P.E., Texas Tech University Tim Dallas is a Professor of Electrical and Computer Engineering at Texas Tech University. Dr. Dallas’ research includes MEMS packaging issues with an emphasis on stiction. In addition, his research group designs and tests SUMMiT processed dynamic MEMS devices. His MEMS group has strong education and outreach efforts in MEMS and has developed a MEMS chip for educational labs. His group uses com- mercial MEMS sensors for a project aimed at preventing falls by geriatric patients. Dr. Dallas received the B.A. degree in Physics from the University of Chicago and an MS and PhD from Texas Tech Uni- versity in Physics. He worked as a Technology and Applications Engineer for ISI Lithography and was a post-doctoral research fellow in Chemical Engineering at the University of Texas, prior to his faculty appointment at TTU. Dr. Tanja Karp, Texas Tech University Tanja Karp received the Dipl.-Ing. degree in electrical engineering (M.S.E.E.) and the Dr.-Ing. degree (Ph.D.) from Hamburg University of Technology, Hamburg, Germany. She is currently an associate pro- fessor of electrical and computer engineering at Texas Tech University. Since 2006 she has been the orga- nizer of the annual Get Excited About Robotics (GEAR) competition for elementary and middle school students in Lubbock. Her research interests include engineering education and digital signal processing, Dr. Brian Steven Nutter Prof. Yu-Chun Donald Lie, Texas Tech University Donald Y.C. Lie received his B.S.E.E. degree from the National Taiwan University in 1987, and the M.S.
    [Show full text]
  • 3D-AFM Measurements for Semiconductor Structures and Devices
    3D-AFM Measurements for Semiconductor Structures and Devices Ndubuisi G. Orji and Ronald G. Dixson Engineering Physics Division Physical Measurement Laboratory National Institute of Standards and Technology Gaithersburg, MD, 20899, USA Abstract This book chapter reviews different types of three-dimensional atomic force microscope (3D-AFM) measurements for semiconductor metrology. It covers different implementations of 3D-AFM, calibrations methods, measurement uncertainty considerations and applications. The goal is to outline key aspects of 3D-AFM for dimensional semiconductor measurements in a way that is accessible to both new and experienced users and gives readers a strong foundation for further study. Preprint version For published version see: N. G. Orji & R. G. Dixson “3D-AFM Measurements for Semiconductor Structures and Devices” In Metrology and Diagnostic Techniques for Nanoelectronics (eds. Z. Ma, & D. G. Seiler) (Pan Stanford, 2017). Official contributions of the U.S. Government, not subject to copyright. Certain commercial equipment, instruments, materials or companies are identified in this paper in order to specify the experimental procedure adequately, or to give full credit to sources of some material. Such identification is not intended to imply recommendation or endorsement by the National Institute of Standards and Technology, nor is it intended to imply that the materials or equipment identified are necessarily the best available for the purpose. 3D-AFM Measurements for Semiconductor Structures and Devices Table of
    [Show full text]
  • Collaborative Innovation in the Global Semiconductor Industry
    COLLABORATIVE INNOVATION IN THE GLOBAL SEMICONDUCTOR INDUSTRY A REPORT ON THE FINDINGS FROM THE 2010 WHARTON-GSA SEMICONDUCTOR ECOSYSTEM SURVEY CONDUCTED BY IN CONJUNCTION WITH COLLABORATIVE INNOVATION IN THE GLOBAL SEMICONDUCTOR INDUSTRY TABLE OF CONTENTS Principal Investigator 1 Acknowledgements 1 GSA Contact 1 Executive Overview 2 Research Methodology & Demographics 6 Survey Results 7 Summary 24 PRINCIPAL INVESTIGATOR Professor Rahul Kapoor, Management Department, The Wharton School, University of Pennsylvania Rahul Kapoor holds a Ph.D. and an M.Sc in Management from INSEAD, an MBA from National University of Singapore and a B.A.Sc (Engineering) from Nanyang Technological University. His research focuses on how firms organize for innovation and on the strategic implications of technology and industry evolution. His work has been published in the Academy of Management Journal, Strategic Management Journal, Academy of Management Best Papers Proceedings and Solid State Technology. He is a member of the editorial board for the Academy of Management Journal. At Wharton, Professor Kapoor teaches MBA courses on Competitive Strategy and Technology Strategy. Prior to joining academia, he spent over seven years in the semiconductor industry. He can be reached at [email protected]. ACKNOWLEDGEMENTS We would like to express our gratitude to the many industry executives who took the time to complete the survey, and those who provided us with their valuable inputs during the design and the pretesting phases of the survey. Professor Kapoor would like to thank the William and Phyllis Mack Center for Technological Innovation at The Wharton School, University of Pennsylvania for funding parts of this research. He would also like to acknowledge the help from colleagues who provided feedback on the design of the survey.
    [Show full text]
  • The Future of Tomorrow: Powered by Semiconductors the Future of Tomorrow: Powered by Semiconductors
    June 2021 The Future of Tomorrow: Powered by Semiconductors The Future of Tomorrow: Powered by Semiconductors Semiconductors have emerged as a lynchpin of modern electronic technology, used in almost every modern device, from cell phones to automobiles. How can investors participate in the semiconductor revolution? The ubiquitous use of semiconductors, along with the dynamic characteristics of the industry, help make this industry a compelling investment opportunity, in our view. In this whitepaper, we provide an in-depth breakdown of the industry to help investors better understand what’s driving the long-term potential of this space. Key trends currently shaping this investment opportunity include: Key takeaways: ▪ Semiconductors are a crucial component for many of ▪ Semiconductor companies enjoy a number of different the innovative technologies that are driving the global economic moats economy ▪ The semiconductor industry has successfully adapted to ▪ Semiconductor processing power has continued to a pandemic driven economy increase exponentially over time, allowing for faster and ▪ Chip shortage (due to a perfect storm of factors) has led better technology to be produced to a supply/demand imbalance, which is expected to ▪ As technology has improved, demand has risen, continue into the foreseeable future alongside a number of secular growth trends such as artificial intelligence (AI) A technological revolution is underway, potentially bringing us to the brink of the fourth industrial revolution. Lines between the physical, digital
    [Show full text]
  • Iot Opportunity in the World of Semiconductor Companies July 2018 Brochure / Report Title Goes Here | Section Title Goes Here
    IoT opportunity in the world of semiconductor companies July 2018 Brochure / report title goes here | Section title goes here b Table of Contents The opportunity 03 Industrial market overview 07 Automotive market overview 11 Smart city market overview 17 Health care market overview 21 Consumer market overview 25 Appendix 31 1 2 IoT opportunity in the world of semiconductor companies | The opportunity The opportunity: Semiconductor companies in the future They could be immersed in powering a world of IoT How do you create shareholder value when • Low economic profit in the industry:Most your product is so heavily commoditized The power of three players in the industry have struggled to that it’s nearly impossible to make high consistently generate profit. Competition Top trends forcing change margins on it? You build an ecosystem to is fierce, and when a product is a The semiconductor industry has been provide solutions, and the Internet of Things commodity it can shrink margins. In some affected by three major trends in recent (IoT) brings semiconductor companies cases, profits made over a period years that have been difficult hurdles to that opportunity, with markets ripe for of some years on in-demand products overcome: innovation and growth. tend to be lost on future products that • Product performance may be peaking: fail to take off. So, what’s driving the shift? Semiconductors Moore’s law states that the number of • Disruption in technology value chain: form the underpinning of all the electronics transistors, and hence the performance, Many semiconductor companies we use in our daily lives.
    [Show full text]