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The Evolving Semiconductor Supply Chain

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The Evolving Semiconductor Supply Chain Global Semiconductor Alliance HIGH-TECH ADOPTION NEEDS HIGH-TOUCH DISTRIBUTION THE RACE TO FULLY DEPLETED DEVICES HOW POWER CONSUMPTION AND COST IMPACT MOORE’S LAW AND MORE-THAN-MOORE ROADMAPS EVOLVING STRATEGIES FOR TODAY'S SUPPLY CHAIN CHALLENGES – FROM DISRUPTION MITIGATION TO ANTI-COUNTERFEITING ANATOMY OF A SUCCESSFUL SUPPLY CHAIN INTEGRATION The Evolving Semiconductor Supply Chain Vol.19 No.3 Sept. 2012 Published by GSA $60 (U.S.) 1 LEADING THE FOUNDRY RAMP IN 32/28nm WAFER PRODUCTION GLOBALFOUNDRIES has shipped >250,000 32/28nm HKMG wafers to date. The milestone represents a significant lead over other foundries in HKMG manufacturing. 45/40nm Production Ramp 32/28nm HKMG Production Ramp Fastest Ramping HKMG Time-to-Volume in volume ahead of others* On a unit basis, cumulative 32/28nm shipments for the first five quarters of wafer production are more than double that achieved during the same period of the 45/40nm technology node ramp, demonstrating that the overall HKMG ramp has significantly outpaced the 45/40nm ramp. The tradition of rapidly ramping leading-edge technologies to volume production continues. ® www.globalfoundries.com ARTICLES CONTENTS 2 High-Tech Adoption Needs High-Touch Distribution Richard E. Wilson, Founder, Chicago Strategy Associates ACCELERATE THE 5 The Race to Fully Depleted Devices GROWTH AND Tim Robson, Product Marketing Manager, Soitec INCREASE THE 8 How Power Consumption and Cost Impact Moore’s Law and More-than-Moore Roadmaps RETURN ON Nick Kepler, Vice President of Products, SuVolta INVESTED CAPITAL 11 Evolving Strategies for Today’s Supply Chain Challenges – from Disruption Mitigation to Anti-Counterfeiting OF THE GLOBAL Kirk Wehby, Vice President, Operations, Smith & Associates Lisa Ann Cairns, Ph.D., Senior Market Analyst, Smith & Associates SEMICONDUCTOR 14 Anatomy of a Successful Supply Chain Integration INDUSTRY BY Trisha Giacopazzi, Global Customer B2B/Project Manager, Amkor Technology, Inc. Heather Salonga, SCM Project Lead, Amalfi Semiconductor FOSTERING A MORE William White, CTO and Co-founder, Tensoft EFFECTIVE ECOSYSTEM 17 How to Make a Semiconductor Company Fully Fabless within One Year Ferdinand H. Bell, Director of Ramp Up and Cost Management, Lantiq THROUGH 20 A Perspective on Semiconductor Investment Returns: 2002 – 2011 COLLABORATION, Charles Welch, Managing Director, Pagemill Partners Matt Sachse, Managing Director, Pagemill Partners INTEGRATION AND Jared Furutani, Associate, Pagemill Partners INNOVATION. 22 Solving 3D-IC Ecosystem Challenges Ken Potts, Chairman, GSA 3D-IC Working Group ▪ Address the challenges and enable industry-wide solutions within the supply chain, including intellectual property (IP), IN EVERY ISSUE electronic design automation 7 Industry Reflections (EDA)/design, wafer 13 Private Showing manufacturing, test and packaging 19 Innovator Spotlight ▪ Provide a platform for meaningful global collaboration ▪ Identify and articulate market opportunities ▪ Encourage and support entrepreneurship ▪ Provide members with comprehensive and unique market INTERESTED IN CONTRIBUTING TO THE GSA FORUM? intelligence To contribute an article, contact: Shannon Phillips, GSA Forum Executive Editor, [email protected]. To advertise, contact: Hayley Warmack, Advertising Sales, [email protected]. ▪ GSA ▪ 12400 Coit Road, Suite 650, Dallas, TX 75251 ▪ phone 888.322.5195 ▪ fax 972.239.2292 MISSION AND VISION STATEMENT High-Tech Adoption Needs High-Touch Distribution Richard E. Wilson, Founder, Chicago Strategy Associates nalog circuit technology, once considered mature if not Restructuring Distribution for Growth commoditized, is experiencing a renaissance in growth, due Research has shown four growth avenues for analog electronics Ato its essential role in a wide range of new devices. According manufacturers in rapidly expanding horizontal markets: to GBI Research, the analog circuit industry can look forward to attractive expansion through 2020, as new OE product platforms ▪ Broaden the distribution system to channel models willing proliferate around smartphones, tablets, radio basestations, portable and able to overcome sourcing inertia at small- and mid-sized device batteries, medical imaging scanners, electric cars and a wide OEMs. variety of other industrial and medical applications. ▪ Determine improved online and offline channel activities Barriers to New Analog Products required to drive profitable adoption of new off-the-shelf products. Discussions with decision-makers and technical users at a range of OE end-users in North America suggest that analog circuit manufacturers ▪ Structure viable and attractive channel economic models that face significant barriers to getting their newest innovations adopted ensure profitable execution of demand generation activity. in the fast-growing small- and mid-sized horizontal OE market: ▪ Identify new types of channel partners with field reps and ▪ After years of digital technology adoption, today’s product mindshare capable of driving adoption by harder-to-reach development engineers at small- to mid-sized original OEMs. equipment manufacturers (OEMs) lack a deep understanding of analog technology and its latest developments. Customer Driven Channel Reinvention A market-focused approach to helping companies pursue the ▪ Lack of analog expertise means that most OE product and purchasing engineers will default to familiar legacy brands four growth paths above brings fresh perspective and new ideas and trial-and-error component selection and procurement. to experienced distribution managers who are under pressure to The supply chain process is seen as cumbersome, risky, time put growth- and profit-driving distribution channels in place. consuming and inadequate. Collaborating side-by-side with a company’s own distribution managers in a straight-forward process is outlined below in Figure 1. ▪ Rapid consolidation of semiconductor distribution means that the bulk of today’s analog products are distributed through a Figure 1. Market-Focused Channel Reinvention small number of global players offering extensive assortments, ease of order entry and competitive prices. Promotional Map • Understand buying process hurdles materials by these players aside, the reality on the street is that End-user • Identify high-value segments Market the field application engineering support craved by small- and • Lay out customer lifecycle economics mid-sized OEMs is wholly inadequate. Design • Detail demand generation and fulfillment activities ▪ The pinched economics of small- to mid-sized OEMs requires • Develop channel investment and profit model a multi-year lifecycle approach to customer development and Optimal Channel • Design channel incentive and support programs demand creation investment that large global distributors and traditional manufacturer reps find hard to square with financial pressures. Streamlined websites and don’t offer proliferating Build • Identify optimal partner attributes online data sheets or webinars are great, but not the high-touch Channel • Screen and recruit partners assistance smaller OEMs require. Network • Create partner monitoring and management system The bottom line for analog circuit manufacturers investing © 2012 Richard E. Wilson heavily in technology innovation and product differentiation for industrial and medical OEMs is this: incremental growth will come Mapping End-User Markets from building new demand creation capacity and competence in Successfully distinguishing one technology channel from another their distribution channels. requires that end-customers perceive a tangible difference in their 2 total product buying and usage experience. One approach to Not only that, the repetitive nature of these channel management reinventing high-tech channels starts with immersion in the voice-of- demands and problems tend to push all of us toward tried-and-true, the-customer. Unlike conventional market research, this exploration conventional responses. That’s only natural. For managers steeped is done through one-to-one strategic dialogues with important in day-to-day logistics and quota management pressures, it’s hard to decision-makers, influencers and internal customer users. Goals take a step back and a fresh look, to re-think customer pain points include surface distribution whitespace in the market, identifying in a different way. And of course for field sales leaders trying to meet high-value customer segments willing to pay for improved their goals, it’s harder still to move forward with new, better ways performance and laying out the lifecycle economics of a new OEM of operating that might feel risky, costly or longer-term. But fast- distribution relationship. changing markets are where the richest sources of high-profit growth will lie. An objective new look at customer needs continues to be the Designing Optimal Channels surest path to competitive advantage. The basic premise of using distribution to build high-tech competitive Don’t all the channel options we can choose from already advantage is this: superior customer experiences are delivered through exist? superior channel activities, whether they’re performed directly or through independent partners. As outlined in Figure 2 below, the The biggest opportunities for share growth and differentiation often optimal channel structure divides these value-creating distribution arise from a fresh look at end customers and a search for new routes activities among participants in a way that is both effective in creating to their market. Way back
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