The rise of IoT products and platforms has led to a number of challenges that need to be addressed to explore the full potential of IoT systems and their related emerging applications. This report includes a comprehensive analysis of the SoC-IoT space, highlighting the major trends and opportunities across the ecosystem. Read More: https://bit.ly/2FSIVDl.

2. INTRODUCTION
IoT Ecosystem 6
Opportunity for Semiconductor Industry with Advancement in IoT 8
Role of Semiconductor Industry 9
Silicon Implementation for IoT Devices 10
Challenges in Implementation of SoC-IoT 11
SoC-IoT Design Requirements
Analog Integration and IP-Reuse 14
ASIC Capability 14
Complex Clock 14
Verification 15
Trends in SoC-IoT Space
Wireless Interoperability 17
Analog IP Integration and Reuse 18
Power Requirements 18
Memories and Sensors 21

3. Acquisition Trend Analysis
Acquisition Timeline and Deal Count 66
Deal Characteristics and its Strategic Drivers 67
Technology Drivers of the Deals 69
Details of the M&A Transactions 71
Key Opportunities in the SoC-IoT Ecosystem
Key Takeaways 79
Recommendations 80
References 82

4. INTRODUCTION
Digitization and intelligent automation technologies are steadily shaping the world’s future. Digitization refers to creating a digital format of an
analog or physical thing, whereas intelligent automation mainly focuses on automating and optimizing processes. These are revolutionizing a
number of industries and sectors, and are bound to effect major changes at both the enterprise and consumer levels. The efforts to push
digitization and automation globally are evident through the emergence of different platforms, initiatives, and new solutions. One such
promising trend is the adoption of internet of things (IoT), which will form the basis of almost everything in the future. IoT has been a buzz
word for as long as one can remember. Although the adoption of IoT in the real world has been slow, this trend is ubiquitous and is likely to
grow, along with a significant reduction in the prices of related products and services. Unlike other similar trends, which were short-lived, IoT
is a mega trend that is gaining momentum at its own pace, albeit with a promise of effecting lasting effects on the society at large. This
research analysis examines the impact of the semiconductor industry in the IoT segment, with special focus on the recent trends in system-on-
chip (SoC) architecture in the IoT environment.

5. IoT Ecosystem
IoT is essentially a network of intelligent systems that are defining the next level of internet use. An IoT system consists of sensors, actuators, and smart
objects and is built on the concept of “connected things”. It aims to make virtually every object smart, programmable, and interactive. The applications of
IoT include smart buildings, smart grids, smart healthcare, smart homes, and smart agriculture practices. Here, the term “smart” implies a digital
technology embedded in an object to make it intelligent and adaptive enough to optimize real-world situations. The interaction of objects, assets, and
processes enables the recording of data and actions to understand behavior and operation, and to optimize a situation using preventive steps. This can
be used for various applications, including traffic management, environmental monitoring, farming, automation processes, and wearable technologies, to
achieve reliability, robustness, and efficiency.
While an IoT application may appear as a simple idea, actual implementation is complex due to the diverse possibilities associated with it. The ecosystem
comprises IoT-enabled devices, IoT gateways, and IoT clouds. Any significant increase in the number of nodes in an IoT network requires the
development of a gateway to route data from these nodes to the cloud; perform autonomous operations; and provide interoperability, security, edge
intelligence, and protocol abstraction. The IoT cloud has significance in database management, as it is a high-performance network that connects servers
to optimize the processing of data generated by many devices at once.

6. IoT Ecosystem
There is great focus on the networking or connectivity level for IoT. As IoT will span a wide range of applications, a single connectivity standard may not
cover all use cases. Connectivity standardization is also significant for interoperability, should there be devices from different OEMs. Existing short-range
connectivity solutions are Wi-Fi, Bluetooth, Zigbee, NFC, etc., while long-range solutions include cellular solutions and LPWAN. Even wired solutions
could prove effective in applications such as in-home distribution of IPTV and smart grids, as data is transferred through existing electrical wires.
To tap the advantages and opportunities linked to an IoT system, it is imperative to capitalize on emerging trends such as machine learning (ML), artificial
intelligence (AI), and natural language processing (NLP). The combination of IoT and one of these technologies will make the IoT devices intelligent. By
leveraging AI’s analytical capabilities, IoT-equipped devices will be able to understand complicated scenarios and take decisions or provide suggestions
for optimization, thereby facilitating operations based on predictive analytics, cognitive systems, big data, or next-generation automation, without any
human intervention.
For instance, AI could help doctors analyze a patient’s body and get real-time insights into their condition. Smart assistants would be able to learn the
pattern of a user and place an order with the nearby grocery store when the user’s refrigerator runs out of eggs or milk. This is being made possible by
intelligent IoT sensors, which are able to draw conclusions from the vast volumes of data gathered by connected devices. Thus, integrating an IoT
network with AI is a necessity for building digital IoT ecosystems.
Another upcoming trend within the IoT ecosystem is the assessment of the advantages of performing computation and analytics on IoT devices. This
approach is known as “edge computing” and helps lower latency for critical applications, reduce cloud dependency, and manage the massive amount of
data being generated by billions of connected IoT devices. Processing at the edge makes IoT applications more responsive while ensuring security and
privacy by storing sensitive data in the device itself.
Currently, there are multiple challenges associated with IoT solutions, including lack of support for a wide range of protocols, security, standards, IoT-
enabled hardware, and need for faster and accurate software for data analysis. To overcome these challenges, extensive research is being conducted
across different verticals and industries to speed up innovation and provide new IoT services and solutions.

7. Silicon Implementation for IoT Devices
Semiconductor chip manufacturers and OEMs play a key role at the hardware level of the ecosystem, using silicon implementations as the basis.
The IoT ecosystem comprises physical devices connected by means of sensors, connectivity, and other embedded electronics and software.
Previously, the demand for making multi-functional electronics meant adding discrete, off-the-shelf components to the board for quick time-to-
market needs. However, these implementations meant high-power consumption, increased cost, and limited functional aid. Various design
alternatives have been developed through the years for enhancing chip operation while reducing the time to market. Some prominent silicon
implementations are discussed in the sections below.
Selection of Suitable Silicon Implementation for Edge IoT Devices
The choice between SiP and SoC depends on their respective advantages and disadvantages specific to a particular end application. SiP is apt for
applications that require fully functional, simple, and specialized modules that can be easily integrated into a system, whereas SoCs are appropriate
for applications characterized by low power, low costs, and minimum performance. Sometimes, SiP and SoC are complementary in nature and add to
the overall value of a particular system. Furthermore, ASSPs and ASICs can be used for applications that do not require integrated processing power.
However, IoT edge devices demand abundant processing power, coupled with low-power operation. Therefore, considering the advantages of SoCs
over other silicon implementations, the former emerges as the most suitable solution for intelligent edge computing in IoT applications.

8. SoC-IoT Design Requirements
Analog Integration and IP-Reuse
Analog technology will play a vital role in the IoT ecosystem. The diversity of IoT applications has given rise to a need to process continuously variable
physical quantities. Fitness trackers and clocks are some examples of analog devices. Given the need to process analog inputs in an IoT environment,
market focus has shifted to the integration of analog/mixed signal (AMS) content with SoCs. Analog IP integration is a prominent trend in the IoT space
— one that also reduces the time to market. However, analog IP integration is not an easy task and may cause design issues because of various process
technologies at foundries and differences in parameters such as voltage scaling and performance.
IP-reuse is another concept required to reduce time-to-market and increase productivity. The entire design is partitioned into smaller IP blocks with
well-defined functionalities that can be reused across multiple designs. The cost incurred to build a design from scratch is extremely high compared
with licensing cost and royalty for external IP. Therefore, IP-reuse is a concept needed to meet the complex SoC design requirements. Few examples of
IP blocks include on-chip memory, DRAM controllers, security, processors, etc.
ASIC Capability
More than ever, now is the time to engage experienced design teams that have successfully completed hundreds of custom IC designs for application-
specific needs. Such teams can handle implementation activities (architectural trade-offs, system partitioning, hardware/software trade-offs, IC and
board designs, etc.) better than a team that designs other silicon implementations and general-purpose ICs. Therefore, SoCs require an experienced
team of designers and engineers.
Complex Clock
A typical SoC design can include a number of clock sources, maybe in hundreds, to suit different IoT applications. It is important to remove all
uncertainties and mismatches in process variations due to these clock sources. Techniques like clock gating can be leveraged from IP blocks to provide
low-power architectures. Clock gating architecture is widely used to choose inactive modules under a particular condition in a design and gate that
part of the design accordingly for dynamic power consumption.

9. Trends in SoC-IoT Space
Innovation is the key to driving growth and meeting various challenges and specific design requirements. The trend of developing new techniques for
system integration and SoC designs will continue in the future. The upcoming applications are driving R&D on a range of subjects, from materials and
sensing methods to low power circuits and memories. In order to identify trends in the space, it is important to understand the timeline of challenges
involved in the implementation of SoC-IoT. In addition, analysis of the current scenario of problems and solutions will make it easier to assess the
potential impact the trends will have on real-world implementations in the future.
Wireless Interoperability
With the edge segment being flooded with various kinds of IoT devices, it is becoming a challenge to select the right connectivity solution for each
product. These products often come across as barriers in the form of streamlined, interoperable wireless support. One of the functional blocks of SoC-
IoT pertains to the connectivity support that the chip will offer. Therefore, a scrutiny of the interoperability of IoT devices is in itself an examination of
SoC-IoT. Currently, SoC-IoT manufacturers are able to pack support for Wi-Fi (2.4- & 5-GHz 802.11n), Bluetooth, and 802.15.4-based technologies
(Zigbee 3.0 and OpenThread) within a single chip. However, once 5G infrastructure is online, next-generation chipsets are likely to hit the market. These
chipsets may bring in new standards, with wireless interoperability as the key aspect of motivation. The future of wireless connectivity is not bound to
one technology; instead, it will only be accomplished through a combination of solutions, networks, standards, and protocols that will work together in
a unified environment.

10. Trends in SoC-IoT Space
Analog IP Integration and Reuse
In contrast to the current implementations, the future of IP integration/reuse promises modular architectures specific to IoT devices and the application
areas of concern. This means manufacturers can easily choose from a pool of IP available for the type of IoT device they are trying to build, with no
additional adjustments, thus resulting in reduced time to market. These IP blocks will also offer the capability to work on lower technology nodes,
leading to transistors that are smaller and faster, yet power-efficient.

11. Competitive Analysis
Category 1 - Power Management Solution Providers
Design verification has always been a challenging task due to its time-consuming, cost-intensive nature. With the advent of SoC architectures, verification
has become an essential undertaking that spans the entire life cycle of a SoC design and involves the use of diverse platforms, tools, and technologies. It is
defined as a multi-step procedure that is carried out before a SoC design can be taped out and sent for manufacturing. These multiple steps are
collectively known as sign-of checks. These multiple steps are collectively known as sign-of checks that include design rule checking (DRC), IR drop
analysis, static timing analysis (STA), etc. Each sign-off checks face several challenges owing to a growing connected ecosystem of SoC-IoT.
Additionally, SoC-IoT applications demand mixed-signal-based architectures and reduction in the sizes of the advanced nodes, consequently adding to the
complexity by the passing day. These complexities bring uncertainties at both the system level as well as at the SoC level. Moreover, analog and mixed-
signal IPs involve complex interaction between the analog and digital circuitries due to multiple feedback loops associated with the mixed SoC design.
These complexities need to be dealt with for complete formal verification of a SoC-IoT design.

12. Competitive Analysis
WHAT IS THE TECHNOLOGY?
Ambiq Micro has developed a patented sub-threshold power optimized technology (SPOT™) platform for meeting low-power demand of wearable
devices, smart cards, wireless sensors, and other IoT applications. The SPOT™ technology allows microprocessors to fine-tune the voltage levels that a
battery releases, which results in an exponential energy reduction. [19] In October 2018, the company announced TurboSPOT™, which is an advanced
version of the earlier platform. This platform increases energy efficiency of battery powered devices by increasing the computational capabilities of the
ARM Cortex M4F core to 96MHz and lowering the active power consumption to <6uA/MHz.
CURRENT OFFERINGS
Currently, Ambiq Micro is developing low-power MCUs (Apollo Family) and real-time clocks (RTCs) that can be used with power-stingy sensor technologies
applied in IoT designs. Apollo MCU family provides benefits such as the development of a seamless interface between multiple sensors and the
permission to write unique algorithms on-device. Furthermore, low-power RTCs act as a substitute to MCU-based devices, where the main MCUs are not
used for powering down or conserving power for achieving a low-power, “keep-alive” state of a system. The current products are capable of offering a
power efficiency of 10µA/MHz, enabling wearable products to go on for more than 21 days on a single charge.
The recent product released by Ambiq Micro is Apollo 3 Blue Wireless SoC comes with an advanced direct memory access (DMA) engine and TurboSPOT™.
It also includes Bluetooth low energy (BLE5), updated peripherals and additional memory. The DMA engine in combination with the extra computing
bandwidth gives designers the flexibility to add more complex sensor processing algorithms without deteriorating the quality. Apollo 3 Blue also extends
the capabilities to add AI inference engines like voice and predictive sensory processing to ultra-low power edge devices. This product caters to battery
and energy harvesting powered IoT, hearable, wearable & voice-activated edge devices.

13. Competitive Analysis
Ambiq Micro’s offerings are also finding application in IoT devices including fitness watches, analog watches, smart clothing, smart credit cards, smart
utility meters, wireless industrial sensors, wireless medical devices, and a growing list of other energy-constrained devices.
KEY PERSONNEL
Scott Hanson, founder and CTO, is an expert in ultra-low energy and variation-tolerant circuits, and is responsible for the development of the SPOT™
platform at the University of Michigan along with the Ambiq Micro co-founders, Dennis Sylvester and David Blaauw. He is an active participant in various
conferences and trade shows, and widely speaks on energy-efficient circuits. Scott Hanson has more than 30 publications and 7 patent filings on related
topics. The fact that he has spearheaded the company’s core technology platform and decided to stay involved with it by holding the CTO position shows
his vision for addressing the emerging market.
Other executives include Sean Chen (President), Thomas Chen (Vice President), Fumihide Esaka (Chairman/CEO), Donovan Popps (VP of Engineering), and
Christophe Chevallier (Director of Memory Design), each with an experience of 20–25 years in the semiconductor and electronics industries.
Why is Ambiq Micro a Company to Look out for?
Ambiq Micro is one of the early adopters of the sub-threshold technique, which is likely to be a de facto standard for low-power IoT devices. The SPOT™
architecture is designed in such a way that every digital and analog circuit in a chip has reduced sensitivity toward temperature, voltage, and other
manufacturing variations involved. The circuits in the architecture can operate on 0.5 V or even lesser voltage supplies, resulting in an improved dynamic
power. The company claims that this can provide a 10-fold improvement in the MCU power consumption compared with its competitors. This is mainly
because power consumption scales with the square of voltage. The company is addressing the technology and market demand for wearable device
applications where low power consumption for battery operation is a priority. This is a considerably new market, and not many established players are
confident of addressing the problem area using their legacy systems to maintain position in the market.

14. Acquisition Trends
Acquisition Timeline and Deal Count
An assessment of the acquisition trends in the last five years (2014–2018) provides insights into the inorganic growth routes adopted by established
companies for differentiating their products or coping with competition. The graph shows the number of deals signed in the last five years, including the
high-value deals of each year.