The future will be rife of innovation-focused semiconductor companies that are able to tap into the emergence of the IoT market.
FREMONT, CA: The ever-evolving array of Internet of Things (IoT) is driving an expansion of the number of semiconductor components people use in their daily lives. Given that, semiconductor manufacturers can no longer be just component providers to create value in this market. They have to understand the entire IoT stack’s requirement and create an end-to-end solution that facilitates market adoption. So this is an exciting time to be involved in the semiconductor business.
To maximize the value they earn from IoT device sales, semiconductor companies will need to widen their operations. According to a recent study, the semiconductor companies’ conventional focus on Silicon may not be enough for IoT as chips only a mere part of the value chain. However, expanding beyond chip making will need semiconductor companies to become solution providers, instead of mere component providers. This will help semiconductor companies grow and increase their share of the IoT opportunity. IoT will, therefore, drive innovation and new ways to sell for the semiconductor players as the primary means to differentiate themselves in the competitive IoT market.
The IoT boom has some other positive correlations for the semiconductor industry. By incorporating IoT-based equipment health monitoring technology into the semiconductor production environment, these companies can witness decreased downtimes, increased quality, efficiency, and safety. Additionally, semiconductor businesses can enhance productivity and profits, reduce asset loss, inventory size, and inventory waste, and decrease customer turnover by using the IoT to automate and thereby streamline supply chain operations. The IoT can also offer energy-savings by controlling equipment usage, based on data generated by sensor technologies and previous usage patterns in semiconductor manufacturing floors.
Thus, by using IoT technology, semiconductor companies can benefit in several ways. While this requires firms to gain new technical and business competencies, and continuously innovate to keep pace with the fast evolution of the IoT market.