28th April 2014

Mobility and IoT - and its impact on the semiconductor industry

I attended the Semicon 2014 last week here in Singapore at the Marina Bay Sands – after a self-imposed hiatus of a few years. I attribute the hiatus to Semi charging people to attend its industry tracks. I do realize that they too have to make a bit of money to sustain but then it is always tough to pay for an event once you get used to participating in them for free for some years! Anyhow, as I was chairing a session on the Fabless/IDM Technology Challenges track in this year’s event, I had free access to all its tracks and especially the market trends as well as the networking cocktail event held on the first day. The market trend has always been a big crowd puller for Semi and this year was no exception.

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Anyhow, let me talk here about the Fabless/IDM track. This was co-organized by SSIA (Singapore Semiconductor Industry Association) of which I happen to be an executive committee member, along with Semi.

The theme of this track was “Mobility and IoT - and its impact on the semiconductor industry “. The growth has been quite rapid in this space especially now in the IoT one. The potential market is huge, is fragmented and with low barriers to entry and no major competitors/players (as yet) – a conducive backdrop on Porter’s five competitive forces shaping industry competition. Unlike the smartphone market which has evolved into a cut throat biz dominated by vertically integrated players, the IoT looks set to provide a refreshing levelling impetus.

We are looking into some exciting and innovating market opportunities in this space, especially on the IoT front. Apart from the potentially high growth applications markets that this opens up for the semiconductor industry, the underlying fabric of our industry is also seeing transformation at various levels including the increasing inter dependency and synergy across the various entities in this eco system. These emerging application markets and morphing industry ecosystem bring along several interesting visions and opportunities as well as new challenges. So it was with a lot of excitement and quest for knowing more on this aspect that I was looking forward to chairing this session and especially more to moderating the panel discussion following the presentations. And of course, the great speakers and the panellist line-up fuelled this up.

The speakers included Vincent Tong, SVP, New Product Introductions and Worldwide Quality & Asia Pacific Executive Leader, Xilinx, Greg Turetzky, Strategic Business Development Manager, Wireless Communication Systems Group, Intel, Jennifer Teo, VP of Manufacturing and GM, Silicon Labs International and Giuseppe Miano, VP Asia Operations and MD, Broadcom, Singapore. Vincent’s talk dwelled on IoT requiring advanced SoC with differentiation as a key i.e. differentiation with intelligence and flexibility and hence programmability. Greg spoke about ubiquitous location for all mobile platforms, the opportunities and the challenges. The market opportunities have expanded from GPS to GNSS and now to location with the latter being the next big opportunity – always located and with context. Jennifer talked about how IoT is being a game changer and dwelt on the technologies required for the “things”. Giuseppe spoke about the 3rd wave of wireless connectivity – from connecting to consumption to sensing (and controlling). Have added another acronym to my vocab – BYOW (Bring your own wearable) – and must say I find that cool! He also spoke about the favourable market dynamics driving the growth as well as the aspects that need to start being considered especially on the manufacturing, logistics and suppliers side.

The panel discussion following these talks centred on “Harnessing the power of Mobility and IoT – perspectives from the semiconductor industry”. The panellists included the earlier speakers and
Subramani Kengeri, VP, Advanced Technology Architecture, GlobalFoundries and Francis Puno, Chairman SEA Work Group of Continua Health Alliance.

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With stake holders from across the value-chain – IDM, fabless, foundry, application – the panel stirred up a lively and insightful debate. While the insights were quite forthcoming on my questions regarding the technical and even the ecosystem enablers, there was almost a conspiratorial silence from the panel on my query about the biz models they anticipated to develop or emerge with IoT applications. As they said, everyone is holding their cards close to their chest!

It was an insightful and a highly engaging session where all the speakers and panelists spoke passionately about this industry. And that is always heartening!

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posted in Semiconductor, Business, Fabless, Industry Events, Ecosystem, Market trend, Internet of Things, IoT, IDM | 0 Comments

1st April 2013

My analyst series - Qualcomm (QCOM)

Another one on Qualcomm (QCOM)

Lead in mobile integrated chipset and wireless – Snapdragon series, wireless technology patents/licensing
Announced CMOS Power Amplifiers alternative to GaAs PAs for mid-high tiered 3G/4G smartphones

China market focus
- Well positioned to ride on China Mobile’s LTE wave (China Mobile announced spending $6.7b in 4G tech this year)
QCOM chips were in 14 of the 31 terminals selected for trial by China Mobile in Dec ’12 - nearest rival with 4 was Sequans.
- Biz model with local mobile chipset design companies and the system/handset manufacturers for licensing royalties

Major Revenue segments – licensing and sales
While in the last couple of years, QTL’s revenues were higher than that of QCT, QCOM is looking at double digits growth for both biz segments and QCT’s growth to be substantially higher than that of QTL.

Strong focus & investment in R&D
R&D in Q1 fiscal 2013 was 1.1B (18% of revenues)

Vertical integration for mobile eco-system
- Accelerating the commercialization of its Pixtronix MEMS displays using Sharp’s IGZO tech – Note however that the deadline for giving Sharp the 2nd half of $120m investment from QCOM has been extended now to June (due to some specs conditions not being met by Sharp)
- Ride on Internet of Things: Amongst others - Alljoyn and FlashLinq
- Moving beyond devices into wireless backhaul – DesignArt acquisition last year

Strong Financials
- Q1 ’13 earnings: $6b quarterly revenues (a 29% y-o-y increase), $1.91b profit (36% increase over previous year)
- Full-year revenue guidance to a range of $23.4 billion to $24.4 billion from its previous target of $23 billion to $24 billion.

posted in Semiconductor, Business, Fabless, 3G, Qualcomm, Ecosystem, Internet of Things, IoT, chip, connectivity, Mobile, 4G | 0 Comments

27th February 2013

Qualcomm and Internet of Things (IoT)

So, is connectivity to internet necessary for all smart connected devices/applications? A lot depends on the application; for example in a multiplayer gaming app with players physically in the same room, a peer-to-peer network without connecting to the net can do. Qualcomm’s AllJoyn software and FlashLinq are a good fit in this space.

AllJoyn debuted last year and Qualcomm announced the extension of this to new core interoperable services at the Mobile World Congress this week. An application, in its present avatar, it may soon get integrated into the firmware for consumer electronic devices by their manufacturers, should the wave catch on.

And once that happens, I believe Qualcomm would like to see FlashLinq (their peer-to-peer PROPRIETARY technology) too get entwined into this. For while AllJoyn will run across various hardware platforms, AllJoyn apps will be able to run directly over FlashLinq without using Wi-Fi/Bluetooth etc. So if AllJoyn takes off in a big way, we can also look at chips with FlashLinq integrated within them flooding the market – another licensing revenue generator for Qualcomm.

posted in Semiconductor, Qualcomm, Internet of Things, IoT, Internet of everything, chip, connectivity | 0 Comments

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