Semiconductors
riding the IoT-wave

 

 

New Opportunities: New Markets, Applications and Customers

Digitization, mobile computing and the Internet of Things (IoT) are stimulating robust demand for smart and connected products in nearly every industry. And, as every industry relies on the semiconductor industry to bring their smart and connected experiences to life, this demand has translated to robust sales for the semiconductor market, reaching a record high of $339B in 2016.

 

 

Semiconductor sales revenue worldwide from 1987 to 2018 (in billion U.S. dollars)

We’re living in a world where sensors will be everywhere and the sensors themselves have intelligence

John Blyler High-Tech Editor & Educator

Shift from 65nm to 20 nm: 

  • Chip Design Costs +341%
  • Process Dev Costs +225%
  • Fab Costs +168%

Morgan Stanley estimate in PwC 2014 M&A Integration Survey

Slowing Revenue Growth, Shrinking Margins

However, revenue growth for the semiconductor industry has flattened over the last three years, and only slight growth is forecast through 2018. One factor contributing to this slowdown is fierce global competition which is constraining market prices and revenue.

This same competitive environment is also driving a perpetual race for chips and processors that are not only cheaper, but smaller, faster and smarter. This is increasing product complexity and squeezing margins as design, development and fabrication costs rise.

"Semiconductor players that design the most functionality into their products in the shortest amount of time wield distinct competitive advantage"

Collett & Pyle McKinsey on Semiconductors, Number 3, Autumn 2013

Mastering Increasing Chip Complexity with Collaborative Product Innovation

Increasing chip complexity requires greater collaboration across scientific and technical disciplines. Increasing ecosystem complexity requires tighter partner and supply chain collaboration. And demanding market conditions require stronger collaboration between business and product teams.

To find out how the 3DEXPERIENCE is helping semiconductor manufacturers meet their business objectives through greater collaboration, watch the interview with Dr. Michael Doyle, Director & Principal Scientist at Dassault Systèmes.

Synchronizing IC Design for Fast Closure

While collaboration across disciplines and organizations is essential in the semiconductor industry today, realizing the full benefits of collaboration depends on skillful synchronization of complex data and concurrent processes.

The right information systems foundation can enable this synchronization. Such a foundation includes centralized, automated design data management to streamline and accelerate integration. And it includes real-time project and design analytics. This enables timely identification of potential design flaws and deviations from planned milestones.

» More information on IC design synchronization

Capitalise on Comprehensive Innovation Management

Discrete Manufacturers have long used PLM solutions to provide end-to-end orchestration and governance of products throughout their lifecycle, but until recently these solutions were not well adapted to the unique needs of the semiconductor industry. That is now changing, which is a very positive development given that PLM is especially beneficial for companies producing highly complex products and operating within complex ecosystems.

This white paper from Kalypso shows leading practices, capabilities and tools that help achieve:

  • Up to 50% savings on design engineering times while avoiding re-spins
  • 25% improvement on meeting project deadlines
  • 20% reduction in manufacturing costs

» Download it now

Growth in the Number of IP Blocks per Design
Growth in the Number of IP Blocks per Design

The Value of Enterprise level IP Reuse & Management

Re-use and Management of IP is a strategy that has been proven to be very effective for streamlining development, reducing risk, boosting quality and shortening time to market, but it requires an enterprise-level approach to succeed when products and ecosystems are complex.

Learn more about the value of Enterprise level IP Management with John Blyler's 3-part White Paper series.

Article: “Who Owns the IP? Patent disputes and management costs may stall growth in the Internet of Things”

See also the article in Compass Magazine that explores IP ownership issues that are surfacing as semiconductor manufacturers combine widely available hardware and software in innovative new ways.

The concept of a ‘lifecycle’ is a good way to think about the range of activities, risks and costs associated with IP for a semiconductor company.

Warren Savage President and CEO, IPExtreme

Leveraging PLM Analytics to Drive Performance

Making smarter decisions faster is critical to the ability of a company to quickly get innovative, differentiating products to market and achieve a first-mover advantage. Employees at all levels need concise, timely information tailored to their task needs, regardless of whether they are a designer, a project manager or a senior executive.

To address the torrent of data created by multiple business systems, companies need business intelligence and analytics solutions that provide users with the right information, in context, for their needs. This is especially important for product development and PLM.

» Download the White Paper

Virtualization

A fifth strategy for mastering complexity is the use of digital technologies to model, simulate, visualize and experience semiconductor products and processes in a virtual environment. It’s a strategy that was pioneered in the aerospace industry. Given the cost and complexity of producing aircraft, the aerospace industry adopted virtual prototyping and testing to facilitate multi-disciplinary collaboration and to accurately understand and predict the behavior of complex systems with minimal costly physical prototyping.

 

As SOCs become increasingly sophisticated systems built by interdisciplinary teams inside and outside an organization, the use of digital modeling and simulation is likewise bringing important benefits to the semiconductor industry. Digital 3D models provide an invaluable ‘single source of truth’ all can reference and understand – and leverage for innovation, and digital simulation can be used to identify and correct manufacturing, quality and performance issues  before they occur in the real world.

Case Study: Advanced Micro Devices (AMD)

Learn how AMD uses simulation software from Dassault Systèmes to predict and prevent crack formation and delamination in the flip-chip version of its integrated circuits.

» Download the Case Study

Achieve higher efficiency and zero re-spins in developing IOT-ready systems-on-chip

While the 'smaller, faster, better, cheaper' demands will likely remain a permanent part of the semiconductor landscape, an enterprise, and even ecosystem level approach to facilitate IP management , multidiscipline design collaboration and verification will help semiconductor companies continuously turn semiconductor complexity into business profitability.

Dassault Systèmes provides a portfolio of solutions specifically tailored to the semiconductor industry. Used by 17 of the top 20 semiconductors, the solutions help semiconductor companies achieve:

  • Reduce time-to-market by increasing global collaboration efficiency
  • Accelerate decision making by efficiently tracking project execution
  • Increase savings in time and costs through virtual prototyping
  • Optimize manufacturing processes and reduce yield loss

To learn more, watch the Silicon Thinking Industry Solution Experience video