Marketing-Generics | Knowledge Base | Vertical Industry Focus

Knowledge Base | Vertical Industry Focus

External Document:

Wharton School and ATREG Joint Global IDM Industry Study

This is a joint study "Managing Complexity & Change in the Semiconductor Ecosystem" was published in November 2012 between Wharton School and ATREG, based on responses from 23 publicly listed IDMs, about the challenges and opportunities that IDMs face within their ecosystem.  The report finds that IDMs are faster than fabless for TTM for new product designs based on existing designs, whereas fabless are faster than IDMs for new designs on new manufacturing processes.  The study looks at the manuracturing strategy, IP reuse, IP sources and dependancies, IDM> foundry and IDM >complementor relationships, and looks at business models (page 8), and TTM (page 14).   Click here to link to the article

Marketing Generics Application Note:

Top 20 Taiwan Tech companies ranked by sales in 2012

Here are the top 20 Technology companies in Taiwan for 2012

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Short Economist article:

The Semiconductor Industry Under New Management

This excellent short article appeared in the Economist in April 2009, takes a wide ranging tour of the global situation affecting the industry, the (then) downturn, and structural factors affecting the industry.  It embraces the commercial challenges (restructuring, closures, mergers, etc), business models (fabless), technical challenges (the challenges to make 32 nanometre and below), and regional landscape (“Europe is still too focussed on manufacturing”).

More information here

Marketing Generics Application Note:

The Gold List of Sources for Research on Semiconductor Market

The Gold List is produced by Marketing Generics and attempts to provide a near definitive list of research resources for semiconductor industry professionals.  Many people in the industry ask ”where can I find information?”, but the problem today is not lack of information but is almost too much!  The Gold List is divided up into different categories of source of information, and gives you an exhaustive list of sources

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External Document:

Shifting sands in the semiconductor industry

Here are 2 recent articles from BCG on the semi industry, under the theme of 'shifting sands'.  BCG argue that we are now in the 'post-PC era, where demand from buyers is changing, becoming more fragmented, which shorter life cycles, whihch combined with the technical challenges of investing in technology necessary to keep up with Moore's Law creates what BCG believe is a seminal transition period.  

There are two articles in the series:  the first one is about the semiconductor industry more generally, particuarly the profit challenges it faces.  Read it here:

The second one focuses more on the challenges for the foundries, who despite experiencing drantic growth, BCG argue will not have an easy ride.  Read it here: 

External Document:

Semiconductors in China: Brave new world or same old story?

China now accounts for about 45 percent of the worldwide demand for chips (used both in China and for exports), but more than 90 percent of its consumption relies on imported integrated circuits.  For many years now China has promised and threatened more than it ever delivered in semiconductors, and large non-Chinese, global players still dominate all parts of the value chain, but all that could be about to seriously change.  In June 2014 the government announced its new framework and policy towards ensuring that domestic capability gets built with less dependance upon foreign suppliers, and this time their efforts could work.  In which case, watch out Western, Japanese and Korean suppliers.  In particular, McKinsey identify 3 main trends to take notice of:  Pressure for localization will increase; More partnership opportunities will arise for second-tier players and as fewer companies can afford the move to 20nm, paradoxically Chinese vendors have more of an opportunity to play catch up.  Follow this link to dwnload the article 

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PwC Technology Sector Scorecard Q3 2011

PwC's quarterly global snapshot of activity in the technology sector highlights trends, business challenges and opportunities.  This is the Q3 2011 edition.  Download the article here: 

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More-than-Moore

Here is a good explanation of Sematech's explanation of 'More than Moore'.  Download it here!

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Moores law

Here it is!  The definitive version of Moore's Law from the Intel museum!  Download it here

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How to Respond to Changes in the Semiconductor Value Chain

This short article by Gartner explains how the web of relationships that forms the semiconductor "value chain" is evolving as a result of pressures on both the demand and the supply side. Their conclusion is that Chip vendors need to alter their business models in light of these changes.  Although this article was written some time ago (2005), many of the predictions have come to pass, and the article gives still valid and useful insights into the semiconductor industry

More information here

External Document:

Creating value in the semiconductor industry

According to this recent McKinsey article, the semiconductor inustry contributes disproportionally to growth in US labour productivity, contributing more than 25% of US productivity growth from 1995-1999 - more than any other sector.  But the bad news is that most chip manufacturers only capture a small % of the value add they create, indeed only one or two players create real value.  There are many interesting conclusions in this article, but the importance of ROIC (or other similar measures such as RONA, ROE, ROA, etc) (page 11) seems key, as is the analysis of the market share (MS) (page 11), and the importance of having dominant MS. Follow this link to read more!

External Document:

Change of Pace in the Semiconductor Industry

This wide ranging and comprehensive review of the semiconductor industry contains analysis of the Value Chain, the business models, the competitive environment, technology trends and drivers, market forecasts and comments

More information here