How chip makers can regain control of their value chain
Chanan Greenberg, Model N
EETimes Europe (May 28, 2014)
IDC reports that the average selling price of a smartphone decreased to £205 in 2013, down from £236 in 2012, and it is expected to drop to about £157 by 2017. They may not want to pay for enhancements but consumers expect more powerful devices every year.
As a result, OEMs demand even lower prices for better performance, leading to tension between providing faster chips and the failure of margins or revenues to reflect return on the necessary investment. The problem for semiconductor manufacturers is that the performance gains of Moore's Law are not keeping up with the economics. The cost of materials and R&D continue to rise.
On the other hand nervous chip makers would rather have the revenue with poor margin than risk having nothing at all. The result is that most semiconductor manufacturers leave £29.7 million on the table for every £590 million in sales.
![]() |
E-mail This Article | ![]() |
![]() |
Printer-Friendly Page |
Related News
- Commentary: How ESL can regain credibility
- New Report Suggests India Can Expand Role in Global Semiconductor Value Chains with the Right Policies
- Outsourcing Supply Chain Management for chip manufacture can increase yields and quality
- How to Interpret Chip Supply Chain Data
- CAST And Avery Design Systems Expand IP Partnership to Support Next Generation High-Bandwidth Automotive Networking And Control Systems
Breaking News
- VeriSilicon introduces AcuityPercept: an AI-powered automatic ISP tuning system
- Avant Technology Partners with COSEDA Technologies to Enhance System-Level Software Solutions
- intoPIX Powers Ikegami's New IPX-100 with JPEG XS for Seamless & Low-Latency IP Production
- Tower Semiconductor and Alcyon Photonics Announce Collaboration to Accelerate Integrated Photonics Innovation
- Qualcomm initiates global anti-trust complaint about Arm
Most Popular
- Qualcomm initiates global anti-trust complaint about Arm
- Sarcina Technology launches AI platform to enable cost-effective customizable AI packaging solutions
- EnSilica Agrees $18m 7 Year Design and Supply ASIC Contract
- Siemens to accelerate customer time to market with advanced silicon IP through new Alphawave Semi partnership
- Tower Semiconductor and Alcyon Photonics Announce Collaboration to Accelerate Integrated Photonics Innovation