Semiconductor Industry - Opportunities, Predictions and trending areas Synopsys University Connect 2016 - Key Note Speaker

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Overview of the
Semiconductor Industry
Synopsys University Connect 2016
June 2016
Shivoo Koteshwar
Director, MediaTek
shivoo.koteshwar@gmail.com
www.facebook.com/shivoo.koteshwar
http://www.slideshare.net/shivoo.koteshwar/

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Advent of the semiconductor
industry
n The application of the semiconductor has expanded extensively
from radio in the 1960s to almost every electronic device that
has an on-off switch in 2015.The industry is driven by
technology innovation
n The industry has grown rapidly, from over $1 billion in 1964 to
$337.7 billion in 2015
n The semiconductor industry is divided into six broad categories
based on the end-use application
1. Data Processing: Servers, Computers and related hardware
2. Communication :Wires and wireless
3. Consumer Electronics : Household Appliances, LCD TVs, Gaming
4. Automotive : Engine and Infotainment
5. Military and Civil Aerospace
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Industry Categories
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Dominated by: US,South Korea,Japan,Taiwan and European Union

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Industry Forecast: 2015–2019
n Worldwide semiconductor revenue totaled $333.7
billion in 2015, a 1.9 percent decrease from 2014
revenue of $340.3 billion, according to preliminary
results by Gartner, Inc.
n World Semiconductor Trade Statistics (WSTS), the 1st
quarter 2016 semiconductor market declined 5.5%
from 4Q 2015, the weakest first quarter since the
recession in 2009. However, there are signs of
improvement in 2Q 2016. The table below shows 1Q
2016 revenue growth versus 4Q 2016 and guidance for
2Q 2016 for the largest semiconductor suppliers.
n Semiconductor revenues are estimated to reach $389.4
billion in 2019, growing at a compounded annual
growth rate of 3.1% from 2014–2019.
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Industry Forecast: 2015–2019
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Top 10 Semiconductor Vendor
By Revenue,Worldwide, 2015 (Millions of Dollars)
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Fabless-Foundry Model
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n Fabless company only focuses on chip designing and a foundry
focuses on manufacturing the chips designed by fabless firms
n Companies that are involved in both designing and
manufacturing are termed as IDMs, or integrated device
manufacturers.
n What Led to the Emergence of the Fabless-Foundry Model?
n Increasing costs of R&D
n High cost of owning a fab
n While fabless companies direct all their funding in designing
leading-edge technologies, foundries run fabs at full capacity
by partnering with a pool of fabless companies.

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Fabless-Foundry Model
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n Fabless model is creating a technology chasm between designers
and manufacturers
n With the advancement in technology, semiconductor products are
becoming more complex. This is making it even more important for
researchers and manufacturers to be in the same physical location to
ensure any complexities in design or manufacturing are addressed in
real time.
n As this criterion is missing in the fabless-foundry model, the
technology chasm between designers and manufacturers is
widening, in turn increasing the product development cycle.

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Future of semiconductor
manufacturing
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n IDMs have opened their leading edge fabs to fabless firms,
giving tough competition to foundries
n Instead of building their own fabs, large fabless firms may
acquire foundries. This can help companies keep their
intellectual property in house while achieving production
capacity.
n Foundry TSMC is considering building dedicated fabs for each
customer. Rival GlobalFoundries is considering building
dedicated modules within a fab for each customer

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Fall of Japan Semiconductor
Industry
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1. Japan’s semiconductor industry had focused mainly on consumer electronics. However, the
personal computer boom from 1993–1996 put the US back in the top spot
2. In 2000, the semiconductor value chain was divided into fabless companies, which design
chips, and foundries, which in turn manufacture chips designed by fabless companies.
2 Main Reasons

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China – A new Competition
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n China is now looking to reduce its dependence on foreign technology. According to
Chinese news sources, the government plans to invest up to $161 billion over the next
decade to promote domestic chip manufacturers
n However, China is still dependent on foreign firms for advanced technology, while
foreign chipmakers are dependent on China to buy their semiconductors. This
interdependence has forced top semiconductor firms to form alliances and joint
ventures with Chinese companies

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India’s ambitious plan not moving
forward
n India's ambitious plan to be a major player in semiconductors, taking on the Chinese and churning out
locally-made chips for a new generation of smartphone users
n India's ambitions in electronics manufacturing include cutting net imports to zero by 2020, from about $40 billion last
year. It is the world's fastest growing smartphone market with over 100 million sold last year - but almost all of those
phones' chips and circuits are imported.
n The government boldly announced three years ago it would host two new $5 billion chip plants as part of
a project to become a global manufacturing powerhouse, creating thousands of jobs, reducing its need
for imports and taking on global rivals such as Taiwan Semiconductor Manufacturing and
GlobalFoundries.
n Just weeks after Jaypee Infratech, which was partnering IBM Corp and Israel's Tower Jazz, abandoned
plans for one of the big chip plants, STMicroelectronics NV is set to scrap plans to build the other $5
billion plant as its main local partner failed to raise enough money from skeptical investors
n Consortium led by Indian start-up Hindustan Semiconductor Manufacturing Co (HSMC) with STMicro and
Malaysia's Silterra had not been able to raise the funding for the plant, and it might be scrapped.
n Reasons for failure:
n India's wobbly infrastructure
n Unstable power supply
n Bureaucratic red tape
n Poor planning
n The technology curve has moved ahead in the last three years, the global environment has changed and China has
emerged as a big player
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Typical Research Areas in
Academia
n Physical Design CAD
n Design for Manufacturability
n Microwave VLSI Circuits
n Integrated antennas
n Signal Processing
n Trusted and secure processor
and hardware
n Reconfigurable embedded
systems
n High-Speed Communication
Circuits
n Built-in Self Test (BIST) of
Analog and Mixed-Signal
Circuits
n Analog Layout techniques
n Power management Design
n Power Electronics
n Electron Mechanics
n Nano Scale Devices
n Electro Magnetics
n Photonics and Optical
Networks
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New Research Areas in Academia
Examples from IISc/IITK
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n Socially relevant products – Low Cost ATM, Software Apps in
Indian Language, Remote Medical Diagnostic Kit,Weather &
Soil Quality Monitoring, Quick Charging

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Next Big thing : 1. Drones
n UAVs (unmanned aerial vehicles) used in imaging, aerial photography, and
aerospace. UAV flights are either controlled by autonomous onboard
computers or by a remote control run by someone stationed on the ground or
in a vehicle
n Platform combines multi-core processing, sensor integration, wireless
communications, positioning, and real-time input-output for multiple robotics
applications
n In 2015, according to DroneGuru, consumer drone sales are expected to grow
to $1.5 billion.That includes China-based MCHI) DJI’s $1 billion revenues.
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Drone Market:
Recent investments
n Intel invests $60 million in Yuneec, a drone manufacturer. Intel also made
investments in other drone companies such as Airware and PrecisionHawk
n Airware develops drone hardware, software, and cloud services.
n PrecisionHawk offers autonomy UAVs that integrate unmanned aerial systems with
information delivery and sensing technologies to improve business operations for a
plethora of diverse industries such as agriculture.
n Qualcomm (QCOM) invested in 3D Robotics, a US-based manufacturer of
commercial unmanned aerial vehicles (or UAVs)
n Amazon (AMZN) announced its plan to use the drone Amazon Prime Air to
deliver goods to its customers
n Google (GOOG) planned to do the same. Sony went a step further, launching
drones as a service business unit that uses its image sensor technology
n Facebook (FB) is also testing a UK-developed drone to enable Internet
connectivity in remote, unconnected areas.
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Why technology players are
flocking to Drone space?
n Consumer Electronics Association expects the global market
for consumer drones to reach 425,000 units, an increase of
65%, from 2014 to 2015.
n Business Insider Intelligence estimates also show that it’s the
commercial or civilian drone market that’s expected to grow
at a double-digit compound annual growth rate (or CAGR) of
19% from 2015–2020, whereas military space will only grow
at a CAGR of 5%.
n ABI Research forecasts the market for small UAVs to exceed
$8.4 billion by 2018. The commercial sector is expected to
dominate the overall drone market by 2019 with >$5.1 billion
in revenues.
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Next Big thing :2 AR/VR
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n Augmented/Virtual Reality to hit $150 billion disrupting
mobile by 2020
n VR is closed and fully immersive, while AR is open and partly
immersive – you can see through and around it. Where VR
puts users inside virtual worlds, immersing them, AR puts
virtual things into users’ real worlds, augmenting them
n Where VR is like wearing a console on your face (Oculus), AR is
like wearing a transparent mobile phone on it (Magic Leap,
HoloLens).

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Next Big thing :2 AR/VR
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Next Big thing :2 AR/VR
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n VR/AR in 2015 feels a bit like the smartphone market before the
iPhone.These are amazing early stage platforms and apps
n Google Glass coming and going
n Facebook’s $2 billion for Oculus
n Google’s $542 million into Magic Leap
n Microsoft’s delightful HoloLens.
n There are both technical and social issues to resolve as both
markets become real.

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Next Big thing : 3. IoT Value Chain
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IoT Challenges
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n Data Collection
n Data Mining
n Data Analysis
n Prototype à
Massproduction

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References
n Gartner Reports
n International Data Corporation
n MarketRealist website
n IC Insights
n http://mobile.reuters.com/article/idUSKCN0Z10XR
n http://www.digi-capital.com/news/2015/04/augmentedvirtual-reality-
to-hit-150-billion-disrupting-mobile-by-2020/#.V2bKI7QxGHo
n http://www.digi-capital.com/news/2016/01/augmentedvirtual-reality-
revenue-forecast-revised-to-hit-120-billion-by-2020/#.V2bNBrQxGHo
n http://m.timesofindia.com/tech/tech-news/Whats-stopping-India-from-
becoming-a-major-player-in-chip-market/articleshow/52762414.cms
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THANKYOU
shivoo.koteshwar@gmail.com
www.facebook.com/shivoo.koteshwar
http://www.slideshare.net/shivoo.koteshwar/
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