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Moore… or Less?

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Semiconductor companies can keep pace with Moore’s Law. The question is whether they should.

Semiconductor companies have achieved profitable growth by doubling the number of transistors on integrated circuits every two years. Today, costs associated with creating ultra-dense transistors are rising exponentially. At the same time, sales prices are flat—or declining.

In this high-cost/low-return environment, it’s harder for semiconductor companies to justify using Moore’s Law as a tool for sustained competitiveness. Winners will no longer pursue innovations simply because they can. They will pursue opportunities that are clearly aligned to a viable business strategy, as well as their growth and profitability objectives.

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Moore… or Less?

  1. 1. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
  2. 2. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Semiconductor companies have stayed competitive and profitable by following Moore’s Law, doubling the number of transistors in an integrated circuit roughly every two years. FOR 50 YEARS
  3. 3. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. The benefits associated with advanced chip development no longer outweigh the costs. Several factors are forcing semiconductor companies to rethink where and whether to invest. TODAY, THE ENVIRONMENT IS CHANGING
  4. 4. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Some customers, like smart phone manufacturers, will want chips with process sizes of 10 nanometers or less. But many customers don’t need to transition to these ultra-dense nodes to stay competitive. TECHNOLOGY VS SUPPLY
  5. 5. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Historically, semiconductor companies justified high initial design investments because they would recoup those costs over time. That phenomenon is no longer occurring. GROWTH VS PROFITABILITY
  6. 6. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. As companies pack more complex transistors into the same amount of space, the potential for quality problems increases dramatically. The cost of detecting and remediating these issues has soared. QUALITY VS COST
  7. 7. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. A diverse product portfolio of both traditional and advanced node technologies is likely the best strategy for achieving growth and profitability. COMPANIESMUST BALANCETHE RISKS AND OPPORTUNITIES THAT MOORE’SLAW PRESENTS BY ADOPTING THREE PRINCIPLES: 1. CHOOSE CAREFULLY FINDING THE BALANCE
  8. 8. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. With advanced design costs steadily rising, companies must generate maximum value from existing investments. That means producing both older nodes for existing applications and new applications for older nodes. 2. LEVERAGE DESIGN CYCLES FINDING THE BALANCE
  9. 9. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Companies should leverage advanced data analytics to detect quality issues earlier in the product lifecycle and maximize savings. 3. BE MORE VIGILANT FINDING THE BALANCE
  10. 10. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. There is no doubt that semiconductor companies CAN continue to keep pace with Moore’s Law. The question is whether they SHOULD. A NEW RACE
  11. 11. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Learn how semiconductor companies can achieve competitive agility in today’s environment with our full report: @AccentureStrat Follow us on LinkedIn MOORE… OR LESS? JOIN THE CONVERSATION:

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