What new tricks does IC designers have for merging IoT business opportunities?

In order to expand the territory of the Internet of Things market, IC design operators frequently make moves. Large-scale enterprises with more resources will choose to integrate vertical or horizontal supply chain to acquire the shortcomings of their own technology and product lines. Enterprises with less resources will offer customized strategies or cooperate with partners of different natures. A more integrated solution.

The growing concept of the Internet of Things (IoT), coupled with the maturity of the application environment, seems to be a gold mining mountain range for IC designers.

However, as applications such as wearable devices and car networking become more and more demanding, challenges such as lower power consumption and integration of hardware and software are gradually emerging. In order to strengthen their product lines and scale, domestic and foreign chip manufacturers have gradually integrated vertical/horizontal markets to make up for their lack of technology.

The layout of enterprises with less resources can't be so lavish, but under the Internet of Things, “everyone has the opportunity to grasp it”, so these companies choose to cooperate with many different vendors to inspire more and more solutions. It will also choose to assist specific customers to develop customized products and find their own niche points.

Grab the attack on the Internet of Things business chip makers

What are the new tricks for IC designers to grab Internet of Things?

Figure 1 Hong Chunhui, consultant and director of the MIC industry, said that in order to find a better source of revenue, manufacturers have begun to deploy special applications such as smart manufacturing, smart cars and smart medical.

Although the IoT business opportunities are attracting attention, there are still no killer applications. In view of this, IC design operators are beginning to have a M-type competition model. One end of the M-word emphasizes traditional economies of scale, and the other end is a special-purpose application. However, if the industry wants to deploy a special application market, most of them must try to integrate different industries. .

Hong Chunhui (Fig. 1), industry consultant and director of the Institute of Industrial Intelligence (MIC), said that at this stage, IC design operators will not give up the traditional 3C product market, but such markets are still unable to break the low-cost and competition output speed. The scope.

On the other hand, in order to find a better source of revenue, manufacturers have begun to deploy special applications such as smart manufacturing, smart cars and smart medical.

Compared to consumer electronics, these special areas span different categories, allowing IC designers to have a high degree of cross-domain integration in the era of the Internet of Things.

For example, if a wearable device emphasizes the health management of the device or even medical use, its built-in sensor must comply with medical regulations and standards to ensure the reliability and accuracy of the device.

Hong Chunhui believes that for sensor IC manufacturers, they have more resources and are more capable of cross-domain integration to provide a complete set of solutions; however, for small and medium-sized manufacturers, they need to find cooperation in different areas. Partners, together form a business alliance.

The biggest feature of the Internet of Things is that there is no mainstream application at this stage, and there is a lot of room for development. No matter whether it is food and clothing, there is much to be done; but the biggest challenge for IC designers is also because it has to be integrated with downstream manufacturers or It is cooperation, no longer only sell one chip/sensor, but to do value-added services for customers, such as making an application (APP), or a deeper cloud service.

What are the new tricks for IC designers to grab Internet of Things?

Figure 2 Peng Maorong, manager of ICK system IC and process research department of ITRI, said that although the Internet of Things is still in its infancy, there have been many consolidation cases, because many companies want to make up for their own shortcomings in the Internet of Things.

On the other hand, ITRI of the Industrial Technology Research Institute believes that the Internet of Things will kill the battlefield of the single chip in the past and promote it to the competitive situation of the system platform. Many manufacturers have long realized that this commercial war of the Internet of Things requires assembling all kinds of enterprises and jointly integrating various chips/components into a complete platform to excavate gold mines in the Internet of Things.

Peng Maorong (Fig. 2), manager of ICK system IC and process research department of ITRI, said that in the past, most of the phenomena of mutual purchases between enterprises were mature industries. Although the Internet of Things is still in its infancy, there have been many cases of integration, cooperation and alliances. The reason is that many companies want to supplement their own shortcomings in the Internet of Things, whether they are products or applications, or It is upstream and downstream tandem.

In addition, the Internet of Things brings challenges to the IC design industry in terms of product diversity, soft and hard integration, and lower power consumption. In this regard, Peng Maorong explained that if any industry does not have the above skills, it is difficult to cut into the Internet of Things market.

In terms of product diversity, companies can integrate their products into different product lines through horizontal integration, or make their products more complementary through mergers and acquisitions and purchase lines that complement the original products. Performance is even higher.

For example, in the case of foreign microelectromechanical systems (MEMS) microphone maker Knowles CorporaTIon, the company acquired Audience, a voice solution provider, in mid-July 2015, with the aim of taking advantage of Audience's software advantages. Provide customers with a one-stop solution and enhance DSP technology to enrich the company's product line and build a more complete solution (Figure 3).

What are the new tricks for IC designers to grab Internet of Things?

Figure 3 Lou's Electronics chose to establish a more complete product line by means of mergers and acquisitions.

In terms of software and hardware integration, although the semiconductor industry in the past has been making hardware, the revenue figures are very bright; while the Internet of Things era focuses on all the way from Big Data analysis in the cloud to Netcom on the transmission side. Construction, and ultimately to the end products are key issues.

Enterprises want to be based on the Internet of Things market, they must be able to make a complete solution; companies with more resources can use the merger and acquisition method to meet, and small companies have to find a way through business cooperation or alliance.

In the past, most of the companies introduced chips in the terminal products. However, if they want to successfully smash the Internet of Things market, they can work more in cooperation with their partners, from systems, software to hardware, to establish their own ecosystem. .

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