NXP: interpret the economic laws and growth strategies in Moore's law
although the semiconductor industry may sometimes seem a little volatile, it is essentially cyclical. I think any company with many years of experience in the semiconductor field will agree with this. To ensure that the whole industry can continue to move forward, whether in good times or bad times, is the ability of the industry to remain focused on the development of innovative product technology
the whole semiconductor industry is at a crossroads: many innovations in the industry come from the continuous productivity through Moore's law, but now we see more and more attention to the personalized application of "beyond Moore's law"
as a relatively young industry, semiconductor device manufacturers have always been driven by processing technology. Moore's law predicts that the cost of producing a given number of transistors will be reduced by half every 18 months. It is this productivity that makes the density of transistors more and more large, from small geometric processors to billions of transistors that now fill the entire semiconductor industry
are we now witnessing the end of Moore's law? The answer must not be, but just when the density of transistors in manufacturing has greatly increased, the development cost of the processing program driving them has also increased
the economic law in Moore's law is this: for most semiconductor companies, it is now to focus more on what value-added products can be designed in existing technology, rather than just on moving forward. The value of today's integrated devices lies not in the number of transistors it integrates, but in the optimized solutions it can bring to customers
the above view goes side by side with many emerging markets. These markets are stimulated by social changes. The growing awareness of "green", the aging population and the increasing requirements for security and mobility have created new market demand for NXP
collaboration is the key to success in the future.
in 2007, the total revenue of the global semiconductor industry was about 269billion US dollars (excluding wafer foundries), of which only three companies had revenue of more than 10billion US dollars, more than 10 companies had revenue of more than 5billion US dollars, and more than 35 companies had revenue of more than 1billion US dollars. Because each time it was a new time, a small number of Fab free design companies had revenue of more than 1billion US dollars. About 150 companies have revenues of less than $500million. The top 10 companies account for 39% of the total revenue of the industry. In this process,
in any market segment, only enterprises in the first or second place can make profits, and it is difficult to make profits below the fifth place. This is because enterprise scale is very important; In addition, advanced CMOS manufacturing has entered commercial use, and the past "standard IP blocks" cannot provide differentiated services. In order to achieve differentiation and competitiveness in the market, we must increase system knowledge; Another key point is that at present, there is almost no collaboration between different application fields, and collaboration is the key to success in the future
NXP believes that effective growth strategies should include: 1 Ensure the correctness of basic elements (the whole industrial chain, customer relations, etc.). 2. Focus on market segments with growth potential, be able to reflect their differences, and be able to cooperate with customers who have an impact on the market. 3. The portfolio should integrate many businesses in different stages, such as investing in long-term opportunities in the initial stage; In the growth stage, it entered the emerging market of inorganic architectural coatings for exterior walls jg/t 26 ⑵ 002 and maintained growth; In the mature stage, we should harvest and continue to invest. 4. Pay attention to the proportion allocation of R & D budget, and allocate the R & D budget according to the approximate proportion of 35%, 55% and 10% (that is, 35% in mature markets, 55% in growth markets, and 10% in emerging markets). 5. To become a leader in market segments, strive for an appropriate scale in each market segment, and actively implement mergers and acquisitions to establish a leading position. For businesses that cannot achieve this, appropriate treatment should be carried out (for example, acquisition, merger or divestiture of products and businesses that rank lower in the market segment, reorganization and sale)
through acquisition, NXP has supplemented and strengthened the company's product line, so that 72% of the company's entire business sales come from products that are in the leading position in the industry. The main reason why we classify three stars into category 1 is that it is too difficult for designers and engineers of three stars to reflect in: the acquisition of silabs to strengthen the RF CMOS product line, the acquisition of glonav to strengthen the GPS business, and the acquisition of sharp Bluestreak to strengthen the microcontroller product line. At the same time, divest some businesses to obtain better focus, for example, divest cordless/VoIP businesses
in terms of creating scale and establishing leadership, NXP and Thomson jointly established a company engaged in can tuner module business; St-nxp was established by merging the wireless business of both parties with Italian French semiconductor, and now ranks among the top three in the global wireless communication business; The acquisition of keshengxun set-top box business has also become an industry leader in this market segment
future development trends and Countermeasures
the development trend of semiconductor industry is changing from "fast-paced life" to "high-quality life"
in 2009, NXP believed that there were three major application areas worthy of attention. Including medical and health care, energy conservation and environmental protection, and automotive electronics. The IC provided by NXP drives energy-saving (Green Chip) in consumer electronics, as well as medical diagnostic equipment (E-call) and traffic control system
customized solutions. Today's market has matured and needs optimized solutions. OEM manufacturers' products use many semiconductor equipment, and they must cooperate closely with semiconductor companies. This will also speed up innovation and provide OEM manufacturers with more opportunities in differentiation. Early cooperation can also ensure seamless IC integration of OEM end products, reduce development time and cost, and shorten the time to market
system integration. Designing a complex system chip requires a thorough understanding of IP integration. Both within the enterprise and the third party need to make efforts on embedded software. Every system on chip with countless transistors represents years of efforts. In order to speed up the development process, NXP has adopted the method of collaborative design and developed hardware and software in parallel. This collaborative design needs to generate a hardware model in the software field before the chip is produced. In the past, the software field often helped customize the operating system and software stack, which are the key factors for the differentiation of NXP on-chip systems
hardware/software collaborative design is a great challenge, but NXP has overcome this challenge and continues to remain at the forefront of the development of this technology. The design process relies heavily on EDA tools, but also on the expertise of NXP R & D engineers
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