This document provides an analysis of Texas Instruments in the cellular handset semiconductor industry. It begins with an introduction to Texas Instruments and an overview of the cellular handset semiconductor industry value chain. It then analyzes the industry structure using Porter's Five Forces model. The document finds that the industry has high barriers to entry, low supplier power, high buyer power, moderate to high rivalry, and low threat of substitutes. It also notes the industry has experienced healthy growth. The document evaluates Texas Instruments' position and strategy in the industry and analyzes competitors and emerging trends. It assesses TI's strengths, weaknesses and competitive advantages. Finally, it proposes emerging strategies for TI in the cellular handset semiconductor market and looks ahead to the company
Dissertation report on Industry analysis on Electronic industry with special ...Hridoy Deb
I have completed this research project "Dissertation report on Industry analysis on Electronic industry with special focus on Asustek Computer Inc and Lenovo Group Ltd." for the partial fulfillment of the requirement for the award of Master's in Business Administration.
The Semi-Conductor Industry: A Small Guide for Investors & Start- Ups- Semi C...UPE Alliance Group
Since the 1960’s, semiconductor manufacturers in Malaysia have contributed to the production of high-quality semiconductor chips. Malaysian semiconductor manufacturers have supplied some of the world’s largest MNCs from around the world (Germany, US, etc.), including Infineon Technologies, X-Fab and ON Semiconductor. Here is a brief analysis of the Semi Condcutor Industry in Malaysia and it's impact on investors and start ups.
This document compares the semiconductor industry strategies of Intel and ARM. It outlines their business models, metrics, competitive advantages, and how each may adapt to emerging trends. Intel focuses on vertical integration and manufacturing leadership. ARM specializes in licensing chip designs and has a large ecosystem of partners. Both will face intensifying rivalry as their areas of dominance expand across new segments like Internet of Things, mobile, cloud computing, and data centers.
This document provides an overview of Intel Corporation, including its mission, values, history, products, financial information, and SWOT analysis. It discusses Intel's founding in 1968, its pioneering of microprocessors, and its current position as the world's largest semiconductor chip maker. The document also outlines Intel's suppliers, manufacturing process, product portfolio, and major competitors.
Dissertation report on Industry analysis on Electronic industry with special ...Hridoy Deb
I have completed this research project "Dissertation report on Industry analysis on Electronic industry with special focus on Asustek Computer Inc and Lenovo Group Ltd." for the partial fulfillment of the requirement for the award of Master's in Business Administration.
The Semi-Conductor Industry: A Small Guide for Investors & Start- Ups- Semi C...UPE Alliance Group
Since the 1960’s, semiconductor manufacturers in Malaysia have contributed to the production of high-quality semiconductor chips. Malaysian semiconductor manufacturers have supplied some of the world’s largest MNCs from around the world (Germany, US, etc.), including Infineon Technologies, X-Fab and ON Semiconductor. Here is a brief analysis of the Semi Condcutor Industry in Malaysia and it's impact on investors and start ups.
This document compares the semiconductor industry strategies of Intel and ARM. It outlines their business models, metrics, competitive advantages, and how each may adapt to emerging trends. Intel focuses on vertical integration and manufacturing leadership. ARM specializes in licensing chip designs and has a large ecosystem of partners. Both will face intensifying rivalry as their areas of dominance expand across new segments like Internet of Things, mobile, cloud computing, and data centers.
This document provides an overview of Intel Corporation, including its mission, values, history, products, financial information, and SWOT analysis. It discusses Intel's founding in 1968, its pioneering of microprocessors, and its current position as the world's largest semiconductor chip maker. The document also outlines Intel's suppliers, manufacturing process, product portfolio, and major competitors.
This document discusses system hierarchy in printed electronics. It begins by introducing the IEEE electronics system hierarchy, which consists of 6 levels from the integrated circuit level to connections between entire systems. It then examines how printed electronics fits within this hierarchy and can enable new applications. Costs, environmental impacts, and several demonstrator projects are reviewed at different levels of the hierarchy. The summary emphasizes that printed electronics is driven primarily by the circuit board level but aims to enable integrated smart systems and large area electronics.
Market potential analysis towards internet data cardshanleecute
The document provides an overview of the Indian telecom industry and analyzes the market potential for internet data cards. It discusses key factors driving broadband penetration in India like decreasing equipment and operating costs. It also outlines the steps taken to estimate market potential, including defining target markets, geographic boundaries, and consumption patterns. The analysis found growth potential for data cards among business travelers, academics, and professionals needing mobile internet access. Competition in the sector posed a threat to Vodafone's development.
This document summarizes the findings of a survey conducted to understand price sensitivity in the Indian telecom sector. The survey involved 180 respondents from Mumbai, India. Key findings include:
1) For most mobile subscribers, call cost and network quality are the top criteria for choosing a service provider.
2) Tata Telecom had the highest customer satisfaction while MTNL had the lowest.
3) The most used service is making local calls.
4) 40% of Indian customers change mobile providers every year.
The document reviews opportunities in information and communication technologies for the South West region. It analyzes 210 regional companies, identifying strengths in areas like semiconductor design, telecom chip design, and content storage. Near field communications, all-optical networking, low power chips, and vertical chips are highlighted as opportunities based on their market size, growth, and the region's relevance. Regional companies mentioned as leaders in these areas include Samsung, Innovision, Atmel, AT&T Bell Labs, Gooch & Housego, Nortel, Infineon, Zarlink, and Broadcom.
Intel was facing slowing PC sales and looking for new growth areas beyond microprocessors. It invested heavily in new sectors like internet services but later dropped many of these investments. By 2002, Intel refocused on convergence of computing and communications at the chip level across mobile, desktop, server, and network devices. However, it remained unclear if this strategy would succeed or if Intel could replicate its past dominance in a new "third act".
The Technology Alliance’s economic impact report comprehensively measures the contribution of innovation-driven industries on jobs, exports, tax revenues, and associated economic activity in Washington State. This periodic report – the only one of its kind in the state – tracks the tremendous growth of high-impact tech jobs and reveals important changes with far-reaching implications for our economic future, including the explosion in software and computer services employment, the shift from manufacturing to services, and the increasing share of total jobs supported by innovation. State and local leaders need to fully grasp the impact of our innovative industries and the challenges ahead to ensure that the trajectory of high-impact job growth will continue and that Washington’s citizens fully benefit from the innovation economy.
Intel is facing challenges in the mobile market and needs to change its strategies. The CEO is focusing on incorporating Intel chips into wearable devices and improving production speed. To analyze Intel's issues, the paper recommends using the Star Model change framework, which assesses strategy, structure, rewards, people practices, and leadership. It provides examples of how Intel can improve decision making, set goals, communicate changes, and evaluate progress through tools like performance management software. The paper aims to help managers by discussing Intel's situation and proposing questions for leading discussions on effective change implementation.
Application brief cellular backhaul small rural cellsJoshua Cohen
The document discusses using small cell technology and satellite backhaul to expand rural connectivity. A survey found nearly half of respondents favored small cells for rural wireless access over 2G/3G macrocells. Satellite backhaul is well-suited for small cells due to its ability to provide cost-effective, carrier-class connectivity in remote areas lacking fixed-line infrastructure. Economic modeling showed satellite backhaul for small cells can achieve a two-year payback period and competitive total cost of ownership.
Global Marketing Services (GMS) is an Indian company that sources and markets cutting-edge microelectronic products. It aims to become a top supplier in microelectronics, semiconductors, MEMS, and solar industries. GMS has sourced various products for organizations like ISRO and research institutes. It plans to expand through online marketing, a demonstration center, and student training programs. GMS works with various government and private sector customers and has positive testimonials from international principals.
Differentiation and positioning are key in the competitive telecom industry. The document discusses strategies manufacturers use to differentiate such as building brands, focusing on new technology and form factors, custom user interfaces, and targeting specific consumer segments. It also covers the importance of digital marketing and how manufacturers reach consumers through search optimization, social media, and other online strategies to influence purchase decisions. Overall, the document emphasizes that with many suppliers and segments, differentiation is crucial for success in the mobile phone industry.
The business of telecom ap is capturing future revenue growthGeoff Hollingworth
The document discusses how telecommunications companies can capture future revenue growth through the use of application programming interfaces (APIs). It argues that APIs will allow telecom companies to address markets beyond direct communications and participate in the growing "apps economy." Specifically:
1) Telecom APIs can expose network capabilities to developers, allowing telecom companies to participate in new services and address markets beyond basic connectivity.
2) Access-interoperable APIs that work across networks have the most potential for new revenue but are also the most complex to implement.
3) To succeed, telecom companies need operations that can deliver APIs at scale to developers while also facilitating interoperability and settlement between networks.
The document discusses du's digital transformation journey towards becoming a software-defined network provider. It outlines du's plans to invest in next-generation technologies like 5G, IoT, AI and blockchain over the next five years to power new solutions and services for customers. Du recognizes that to keep up with rapidly changing technology and customer expectations, it needs to undergo an organizational digital transformation to operate with more agility. The whitepaper discusses the drivers of change pushing du's transformation, how it is aligning its infrastructure and capabilities with different customer groups, and the tools and changes needed across its organization, infrastructure, processes and workforce to complete its transition.
Zinnov Management Consulting takes a look at the potential for evolution of smart cities in the Indian geography trough the lens of critical parameters.
Technology, Media And Telecommunications Prediction 0f 2020aakash malhotra
According to the experts from deloitte india, media, telecommunications and technology industries are going to flourish like never before. See More : https://www2.deloitte.com/in/en/pages/technology-media-and-telecommunications/articles/tmt-predictions-2020.html
Small Satellites: Landscape and Market - New Constellations - New Uses Cases ...Hugo Wagner
Constellations of small satellites—“smallsats”, i.e. low cost, low mass (1-150 kg) and small sized—
dominate the news today, touted in applications as wide-ranging as providing universal connectivity,
ubiquitous broadband coverage, and daily observation of the Earth. Today, a combination of
miniaturized commercial off-the-shelf components (COTS) and satellite technology, coupled with
advanced sensors, faster computing, and a need for better actionable imagery, have all acted to usher
in a new era for smallsats in the commercial market. In reality, increasingly reliable technology and
permissive regulation have enabled ambitious constellation projects that could threaten the
telecommunications industry and claim a non-negligible share of the emerging markets. This report
surveys the technical and entrepreneurial landscape and uses these insights to develop future
adoption scenarios for smallsats in key commercial applications. !
Silicon Valley is the locus of space entrepreneurship activity. From here, we observe
the following:
• smallsat companies want to provide worldwide internet access!
• smallsat companies are shaping a new wireless architecture!
• smallsat companies aim at providing cheaper data, voice and instant messaging services in remote areas!
• legacy satellite operators want to compete with cellular offers to provide connectivity to connected
cars, aircraft, and the Internet of Things ecosystem!
• satellite antenna manufacturers are bringing smaller, cheaper, more agile, and embedded antennas to
fit the market’s need for more mobility and capacity in order to allow for these applications.
My students use ideas from my class to describe a business model for ARM, which is a successful provider of microprocessor cores for mobile phones. They describe the value proposition, customer selection, value capture, scope of activities, and method of strategic control for ARM's entry into the microprocessor market for PCs.
This document lists 10 reasons to discourage students from pursuing technology careers. Reason #1 is that students will move out of their parents' house once they get a well-paying job. Reason #2 is that technology has nothing to do with what people care about. Reason #3 is that a decent wage doesn't teach kids how to manage money.
This document lists 10 reasons to discourage students from pursuing technology careers. Reason #1 is that students will move out of their parents' house once they get a well-paying job. Reason #2 is that technology has nothing to do with what people care about. Reason #3 is that a decent wage doesn't teach kids how to manage money.
market analysis on semiconductor manufacturing companieshaythahie
The document analyzes the semiconductor manufacturing market, focusing on key metrics for the top 10 companies. It provides market share details, comparing revenue, employees, and revenue per employee. Texas Instruments is among the top companies, holding the 5th position in market share and revenue. Charts and data from Weka and SPSS tools are presented to analyze Texas Instruments' performance.
Rebooting The Electronics Industry After The Economic CrisisPaul Brody
The reeling financial markets are challenging global business leaders to aggressively rethink their strategies. Across the electronics industry, effects are likely to be quite different, reflecting the enormous diversity of the industry itself. From consumer electronics to medical devices, industry sub-segments will have to respond – each in its own way – to lower consumer spending and stricter access to capital.
Whitepaper - How to build a mutil-technology scalable IoT Connectivity Platform?Actility
In this paper, we investigate the challenges facing service providers and enterprises for deploying and monetizing LPWAN solution.
We show in this paper that the traditional M2M approach might not be cost-effective for the needs of LPWAN IoT deployments due to dramatically lower ARPU requirements of IoT compared to traditional M2M. We also examine both cellular IoT (NB-IoT or Cat-NB1, Cat-M1, Cat-1) and LoRaWAN, with the objective to demonstrate the complementary aspects of the two technologies. We show how operators extend existing M2M use cases and swap 2G using cellular IoT, and in addition tap into the new unlicensed IoT market space using LoRaWAN. Interestingly, LoRaWAN is a natural over-the-top play for cellular IoT operators, as cellular IoT is an ideal backhaul technology for unlicensed LPWAN concentrators.
Properly matching a connectivity solution to a use case is a complex multidimensional problem requiring analysis of several factors including battery lifetime, coverage, throughput, latency, total cost of ownership (TCO), amongst other factors. We discuss these factors and attempt to build a technology selection chart, and then build a business case for multi-technology IoT platform that leverages both LoRaWAN and Cellular IoT to serve the needs of all IoT use cases. We also provide insights on the service provider strategy for LPWAN deployment with examples from Tier-1 MNOs such as SK Telecom and Orange.
Finally, we conclude the paper with overview of ThingPark Wireless as a multi-technology platform that addresses the challenges for both LoRaWAN and Cellular IoT deployments.
Business & Industrial Analysis on IT and Telecom Sector By Subham(intern at I...Subham Sahu
The document provides an industry analysis of the Indian IT and telecom sectors, outlining key trends such as growth in cloud computing, enterprise applications, and software testing in the IT industry. It also discusses the rapid growth of the Indian telecommunications market in recent years, as well as the billion dollar value added services industry. The analysis examines opportunities and challenges facing startups in various subsectors of the IT and telecom industries.
This document discusses system hierarchy in printed electronics. It begins by introducing the IEEE electronics system hierarchy, which consists of 6 levels from the integrated circuit level to connections between entire systems. It then examines how printed electronics fits within this hierarchy and can enable new applications. Costs, environmental impacts, and several demonstrator projects are reviewed at different levels of the hierarchy. The summary emphasizes that printed electronics is driven primarily by the circuit board level but aims to enable integrated smart systems and large area electronics.
Market potential analysis towards internet data cardshanleecute
The document provides an overview of the Indian telecom industry and analyzes the market potential for internet data cards. It discusses key factors driving broadband penetration in India like decreasing equipment and operating costs. It also outlines the steps taken to estimate market potential, including defining target markets, geographic boundaries, and consumption patterns. The analysis found growth potential for data cards among business travelers, academics, and professionals needing mobile internet access. Competition in the sector posed a threat to Vodafone's development.
This document summarizes the findings of a survey conducted to understand price sensitivity in the Indian telecom sector. The survey involved 180 respondents from Mumbai, India. Key findings include:
1) For most mobile subscribers, call cost and network quality are the top criteria for choosing a service provider.
2) Tata Telecom had the highest customer satisfaction while MTNL had the lowest.
3) The most used service is making local calls.
4) 40% of Indian customers change mobile providers every year.
The document reviews opportunities in information and communication technologies for the South West region. It analyzes 210 regional companies, identifying strengths in areas like semiconductor design, telecom chip design, and content storage. Near field communications, all-optical networking, low power chips, and vertical chips are highlighted as opportunities based on their market size, growth, and the region's relevance. Regional companies mentioned as leaders in these areas include Samsung, Innovision, Atmel, AT&T Bell Labs, Gooch & Housego, Nortel, Infineon, Zarlink, and Broadcom.
Intel was facing slowing PC sales and looking for new growth areas beyond microprocessors. It invested heavily in new sectors like internet services but later dropped many of these investments. By 2002, Intel refocused on convergence of computing and communications at the chip level across mobile, desktop, server, and network devices. However, it remained unclear if this strategy would succeed or if Intel could replicate its past dominance in a new "third act".
The Technology Alliance’s economic impact report comprehensively measures the contribution of innovation-driven industries on jobs, exports, tax revenues, and associated economic activity in Washington State. This periodic report – the only one of its kind in the state – tracks the tremendous growth of high-impact tech jobs and reveals important changes with far-reaching implications for our economic future, including the explosion in software and computer services employment, the shift from manufacturing to services, and the increasing share of total jobs supported by innovation. State and local leaders need to fully grasp the impact of our innovative industries and the challenges ahead to ensure that the trajectory of high-impact job growth will continue and that Washington’s citizens fully benefit from the innovation economy.
Intel is facing challenges in the mobile market and needs to change its strategies. The CEO is focusing on incorporating Intel chips into wearable devices and improving production speed. To analyze Intel's issues, the paper recommends using the Star Model change framework, which assesses strategy, structure, rewards, people practices, and leadership. It provides examples of how Intel can improve decision making, set goals, communicate changes, and evaluate progress through tools like performance management software. The paper aims to help managers by discussing Intel's situation and proposing questions for leading discussions on effective change implementation.
Application brief cellular backhaul small rural cellsJoshua Cohen
The document discusses using small cell technology and satellite backhaul to expand rural connectivity. A survey found nearly half of respondents favored small cells for rural wireless access over 2G/3G macrocells. Satellite backhaul is well-suited for small cells due to its ability to provide cost-effective, carrier-class connectivity in remote areas lacking fixed-line infrastructure. Economic modeling showed satellite backhaul for small cells can achieve a two-year payback period and competitive total cost of ownership.
Global Marketing Services (GMS) is an Indian company that sources and markets cutting-edge microelectronic products. It aims to become a top supplier in microelectronics, semiconductors, MEMS, and solar industries. GMS has sourced various products for organizations like ISRO and research institutes. It plans to expand through online marketing, a demonstration center, and student training programs. GMS works with various government and private sector customers and has positive testimonials from international principals.
Differentiation and positioning are key in the competitive telecom industry. The document discusses strategies manufacturers use to differentiate such as building brands, focusing on new technology and form factors, custom user interfaces, and targeting specific consumer segments. It also covers the importance of digital marketing and how manufacturers reach consumers through search optimization, social media, and other online strategies to influence purchase decisions. Overall, the document emphasizes that with many suppliers and segments, differentiation is crucial for success in the mobile phone industry.
The business of telecom ap is capturing future revenue growthGeoff Hollingworth
The document discusses how telecommunications companies can capture future revenue growth through the use of application programming interfaces (APIs). It argues that APIs will allow telecom companies to address markets beyond direct communications and participate in the growing "apps economy." Specifically:
1) Telecom APIs can expose network capabilities to developers, allowing telecom companies to participate in new services and address markets beyond basic connectivity.
2) Access-interoperable APIs that work across networks have the most potential for new revenue but are also the most complex to implement.
3) To succeed, telecom companies need operations that can deliver APIs at scale to developers while also facilitating interoperability and settlement between networks.
The document discusses du's digital transformation journey towards becoming a software-defined network provider. It outlines du's plans to invest in next-generation technologies like 5G, IoT, AI and blockchain over the next five years to power new solutions and services for customers. Du recognizes that to keep up with rapidly changing technology and customer expectations, it needs to undergo an organizational digital transformation to operate with more agility. The whitepaper discusses the drivers of change pushing du's transformation, how it is aligning its infrastructure and capabilities with different customer groups, and the tools and changes needed across its organization, infrastructure, processes and workforce to complete its transition.
Zinnov Management Consulting takes a look at the potential for evolution of smart cities in the Indian geography trough the lens of critical parameters.
Technology, Media And Telecommunications Prediction 0f 2020aakash malhotra
According to the experts from deloitte india, media, telecommunications and technology industries are going to flourish like never before. See More : https://www2.deloitte.com/in/en/pages/technology-media-and-telecommunications/articles/tmt-predictions-2020.html
Small Satellites: Landscape and Market - New Constellations - New Uses Cases ...Hugo Wagner
Constellations of small satellites—“smallsats”, i.e. low cost, low mass (1-150 kg) and small sized—
dominate the news today, touted in applications as wide-ranging as providing universal connectivity,
ubiquitous broadband coverage, and daily observation of the Earth. Today, a combination of
miniaturized commercial off-the-shelf components (COTS) and satellite technology, coupled with
advanced sensors, faster computing, and a need for better actionable imagery, have all acted to usher
in a new era for smallsats in the commercial market. In reality, increasingly reliable technology and
permissive regulation have enabled ambitious constellation projects that could threaten the
telecommunications industry and claim a non-negligible share of the emerging markets. This report
surveys the technical and entrepreneurial landscape and uses these insights to develop future
adoption scenarios for smallsats in key commercial applications. !
Silicon Valley is the locus of space entrepreneurship activity. From here, we observe
the following:
• smallsat companies want to provide worldwide internet access!
• smallsat companies are shaping a new wireless architecture!
• smallsat companies aim at providing cheaper data, voice and instant messaging services in remote areas!
• legacy satellite operators want to compete with cellular offers to provide connectivity to connected
cars, aircraft, and the Internet of Things ecosystem!
• satellite antenna manufacturers are bringing smaller, cheaper, more agile, and embedded antennas to
fit the market’s need for more mobility and capacity in order to allow for these applications.
My students use ideas from my class to describe a business model for ARM, which is a successful provider of microprocessor cores for mobile phones. They describe the value proposition, customer selection, value capture, scope of activities, and method of strategic control for ARM's entry into the microprocessor market for PCs.
This document lists 10 reasons to discourage students from pursuing technology careers. Reason #1 is that students will move out of their parents' house once they get a well-paying job. Reason #2 is that technology has nothing to do with what people care about. Reason #3 is that a decent wage doesn't teach kids how to manage money.
This document lists 10 reasons to discourage students from pursuing technology careers. Reason #1 is that students will move out of their parents' house once they get a well-paying job. Reason #2 is that technology has nothing to do with what people care about. Reason #3 is that a decent wage doesn't teach kids how to manage money.
market analysis on semiconductor manufacturing companieshaythahie
The document analyzes the semiconductor manufacturing market, focusing on key metrics for the top 10 companies. It provides market share details, comparing revenue, employees, and revenue per employee. Texas Instruments is among the top companies, holding the 5th position in market share and revenue. Charts and data from Weka and SPSS tools are presented to analyze Texas Instruments' performance.
Rebooting The Electronics Industry After The Economic CrisisPaul Brody
The reeling financial markets are challenging global business leaders to aggressively rethink their strategies. Across the electronics industry, effects are likely to be quite different, reflecting the enormous diversity of the industry itself. From consumer electronics to medical devices, industry sub-segments will have to respond – each in its own way – to lower consumer spending and stricter access to capital.
Whitepaper - How to build a mutil-technology scalable IoT Connectivity Platform?Actility
In this paper, we investigate the challenges facing service providers and enterprises for deploying and monetizing LPWAN solution.
We show in this paper that the traditional M2M approach might not be cost-effective for the needs of LPWAN IoT deployments due to dramatically lower ARPU requirements of IoT compared to traditional M2M. We also examine both cellular IoT (NB-IoT or Cat-NB1, Cat-M1, Cat-1) and LoRaWAN, with the objective to demonstrate the complementary aspects of the two technologies. We show how operators extend existing M2M use cases and swap 2G using cellular IoT, and in addition tap into the new unlicensed IoT market space using LoRaWAN. Interestingly, LoRaWAN is a natural over-the-top play for cellular IoT operators, as cellular IoT is an ideal backhaul technology for unlicensed LPWAN concentrators.
Properly matching a connectivity solution to a use case is a complex multidimensional problem requiring analysis of several factors including battery lifetime, coverage, throughput, latency, total cost of ownership (TCO), amongst other factors. We discuss these factors and attempt to build a technology selection chart, and then build a business case for multi-technology IoT platform that leverages both LoRaWAN and Cellular IoT to serve the needs of all IoT use cases. We also provide insights on the service provider strategy for LPWAN deployment with examples from Tier-1 MNOs such as SK Telecom and Orange.
Finally, we conclude the paper with overview of ThingPark Wireless as a multi-technology platform that addresses the challenges for both LoRaWAN and Cellular IoT deployments.
Business & Industrial Analysis on IT and Telecom Sector By Subham(intern at I...Subham Sahu
The document provides an industry analysis of the Indian IT and telecom sectors, outlining key trends such as growth in cloud computing, enterprise applications, and software testing in the IT industry. It also discusses the rapid growth of the Indian telecommunications market in recent years, as well as the billion dollar value added services industry. The analysis examines opportunities and challenges facing startups in various subsectors of the IT and telecom industries.
The document reports on trends in the telecom expense management (TEM) and wireless mobility management (WMM) industry based on a survey of over 1,100 professionals. It finds that wireless expenses now constitute about 35% of enterprise telecom spending and are increasing rapidly. This growth dictates the need for formal wireless mobility management programs to help enterprises gain control over their wireless environments and align application usage with business objectives.
The Internet of Things: The next growth engine for the semiconductor industryPwC
The ongoing explosion of mobile devices---smartphones, tablets, ultramobiles, and wearables---continues to drive growth in the semiconductor industry. But it's the Internet of Things---with sensors in everything from automobiles, to electric meters, to refrigerators---that will drive industry growth over the next five years.
This in-depth report looks at 2015-2019 growth by component, region and application with particular focus on the role of semiconductors in the IoT ecosystem and how companies can capture value from this developing megatrend.
This document provides an overview of in-building wireless solutions, including Distributed Antenna Systems (DAS), Distributed Radio Systems (DRS), and Distributed Small Cells (DSC). It describes the basic architectures and components of passive DAS, active DAS, hybrid DAS, digital DAS, DRS, and DSC. The document also briefly introduces Anritsu's test solutions for evaluating in-building wireless performance.
This document provides an overview of Intersil Corporation, including:
- The company designs analog and mixed-signal integrated circuits focused on consumer electronics.
- Intersil has grown through acquisitions and has over 1,700 employees globally.
- The briefing book discusses Intersil's business segments, products, strategy, and competitive strengths such as research and development capabilities. It also provides a SWOT analysis and financial information.
Cable_transmission wires_ Industry Analysis ReportSumit Arora
The document provides an industry analysis report of Sterlite Technologies. It discusses the size and growth of the cable and telecom industry in India. It analyzes Sterlite Technologies' competitors and provides details on their market share, revenues, costs, and growth. Additionally, it covers macro factors like regulatory environment, economic conditions, and substitutes that could impact the industry. Financial details on Sterlite Technologies and its peers are presented, including their balance sheets, revenues, margins and other metrics. A Porter's five forces analysis of the industry is also mentioned.
This document provides an analysis of the broadband wireless and WiMAX market in India. It discusses India's telecom market structure and trends, the state of the internet market, and drivers and opportunities for broadband wireless access (BWA) including WiMAX. It profiles major BWA/WiMAX service providers and equipment vendors in India. Forecasts for the 2007-2014 period include equipment shipments and subscriber growth. The methodology describes primary and secondary research conducted, including interviews with industry participants.
This document provides an overview of in-building wireless solutions, including distributed antenna systems (DAS), small cells, and their pros and cons. It discusses different types of DAS architectures like passive DAS, active DAS, hybrid DAS, digital DAS, and distributed radio systems. It also covers distributed small cells. The document is intended to explain the in-building wireless ecosystem and architectures used to provide licensed spectrum coverage and capacity inside buildings.
Big data & advanced analytics in Telecom: A multi-billion-dollar revenue oppo...mustafa sarac
This document discusses how big data and advanced analytics can create new revenue opportunities for telecom companies. It notes that telecom providers collect vast amounts of subscriber data but often lack solutions to correlate and analyze this data in real-time. Investing in big data analytics could help telecoms improve business processes, gain insights from customer data, increase operational efficiency, and enhance the customer experience. The document examines various use cases and estimates the potential market size for big data solutions in the telecom industry.
This report discusses the rise of tablets and their role in converging smartphones and PCs. Tablets are bringing together previously separate industries like mobile operating systems. The report examines the landscape of mobile operating systems and their developers. It also discusses the importance of ecosystems like app stores and content/commerce portals in supporting devices. The report presents forecasts for tablet and device growth under different scenarios, including the potential for "creation tablets" that could cannibalize PCs or lead to a larger market. It argues connectivity between devices will be important and drive further convergence in the consumer electronics industry.
This document outlines the strategy for Nokia to regain the market share in smartphone market.
The views expressed in this article purely belongs to the authors of the article. Neither the college nor the professors endorses the article
The Value Chain Analysis Of Sony Corporation And BoeingCarla Bennington
The document discusses the value chain analysis of Sony Corporation and Boeing. It analyzes the relevance of Porter's value chain, Gereffi and Korzeniewicz's global commodities chain framework, and the effectiveness of sector matrix models. The value chain analysis of Sony Corporation is described, noting some issues in Sony's operations that require attention to maintain efficiency. These include a lack of coordination between business units and a need for continued monitoring and systems management.
Operators dilemma the fourth wave chetan sharma consultingFrançois Avril
This document discusses the changing revenue curves experienced by mobile operators over the past decades and the challenges of a emerging "4th curve". It outlines how operators have historically relied on voice, then messaging, and now data/access for revenue. However, the 4th curve of digital services is expected to be different and more disruptive as it moves operators away from being just connectivity providers. The document provides recommendations for how operators can transform into "Digital Lifestyle Solution Providers" and strategies for investing in the 4th curve to capture new revenue opportunities in a changing mobile ecosystem.
US NORTHCOM Study: Commercial Wireless Doug Hanchard
This document provides a summary of a study examining the utility of commercial wireless technologies to enable communications for US Northern Command operations. Key conclusions include:
- A variety of commercial wireless technologies were analyzed over a 10-year horizon, including WiFi, cellular networks, satellite communications, and emerging technologies.
- Near-term focus (3-5 years) should be on technologies with market viability supported by commercial vendors to provide capabilities for bandwidth, coverage, and cost.
- Mature cellular networks can provide wide-area coverage, while technologies like WiFi and WiMax offer rapid deployment capabilities. IP is crucial for interoperability across networks.
- Recommendations and roadmaps will identify commercially supported technologies
I have developed this report to focus on the strategic analysis of the future of smartwatch industry and the Swiss watchmaker Tag Heuer. The report discusses the following major areas:
• Describes the attractiveness of the smartwatch industries using the Porter’s five forces model and the future KPIs of Tag Heuer to contribute in this industry.
• The fictional future scenarios planning to stress test the existing structure of the organization.
• Discusses thee cultural and operational strategic for between google and Tag Heuer using McKinsey 7S framework.
• Developed alternative ways to enable Tag Heuer enter the smartwatch Industry by understanding the market segment of both the industries
• Discusses and analysis of the H. Mintzberg’s classification of strategy to this alliance.
• The report ends with recommendations and conclusion from the analysis.
5G-Advanced Technology Evolution from a Network Perspective White Paper 2.0IPLOOK Networks
"5G-Advanced Technology Evolution from a Network Perspective" white paper 2.0 is officially released on March 1, 2022.
From the perspective of network, this document clarifies the evolution of 5G-Advanced-Technology in details (5G Development, 5G-Advanced Architecture and Technical Trends, key 5G-Advanced Technologies).
This document provides an analysis of the semiconductor industry and three semiconductor companies: Texas Instruments, Skyworks Solutions, and Avago Technologies. It includes an overview of the semiconductor industry, historical performance, current conditions, and future predictions. For each company, it provides an overview, history, qualitative assessment, ratio analysis, and intrinsic valuation. The intrinsic valuation for Texas Instruments ranges from $61.29 to $64.03 depending on the treasury rate used, indicating the stock is undervalued relative to its intrinsic value.
TrustArc Webinar - 2024 Global Privacy SurveyTrustArc
How does your privacy program stack up against your peers? What challenges are privacy teams tackling and prioritizing in 2024?
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UiPath Test Automation using UiPath Test Suite series, part 6DianaGray10
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Salesforce Integration for Bonterra Impact Management (fka Social Solutions A...Jeffrey Haguewood
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OpenID AuthZEN Interop Read Out - AuthorizationDavid Brossard
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In the rapidly evolving landscape of technologies, XML continues to play a vital role in structuring, storing, and transporting data across diverse systems. The recent advancements in artificial intelligence (AI) present new methodologies for enhancing XML development workflows, introducing efficiency, automation, and intelligent capabilities. This presentation will outline the scope and perspective of utilizing AI in XML development. The potential benefits and the possible pitfalls will be highlighted, providing a balanced view of the subject.
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Ti wireless business analysis
1. Strategic Management
Group Project
PGSEM 2008 SectionA – Professor PD Jose
An analysis of Texas Instruments in the
cellular handset semiconductor industry
Submitters:
Mahendran Shanmuga Sundaram - 2008049 - Texas Instruments
Naufal Ashiq Kukkady - 2008039 - Ittiam Systems
Amith D’souza - 2008009 - Texas Instruments
2. Strategic Management
Group Project PGSEM 2008
Contents
CONTENTS ................................................................................................................................................. 2
1. INTRODUCTION ................................................................................................................................... 3
1.1 TEXAS INSTRUMENTS INC. ..................................................................................................................... 3
1.2 WHY TEXAS INSTRUMENTS AND THE CELLULAR HANDSET SEMICONDUCTOR INDUSTRY?...................... 4
2. THE CELLULAR HANDSET SEMICONDUCTOR INDUSTRY .................................................... 5
2.1 OVERVIEW OF THE INDUSTRY ............................................................................................................... 5
2.2 ANALYSIS OF THE INDUSTRY STRUCTURE............................................................................................... 7
3. TEXAS INSTRUMENTS IN THE CELLULAR HANDSET SEMICONDUCTOR INDUSTRY 10
3.1 TEXAS INSTRUMENTS – POSITIONING IN THE CELLULAR HANDSET INDUSTRY ......................................10
3.2 TEXAS INSTRUMENTS CURRENT STRATEGY ...........................................................................................10
3.3 THE IMPORTANCE OF CORPORATE LEVEL STRATEGY ............................................................................11
4. THE COMPETITION AND EMERGING TRENDS IN THE CELLULAR HANDSET
SEMICONDUCTOR INDUSTRY ............................................................................................................12
4.1 THE COMPETITORS AND COMPETITOR STRATEGIES ..............................................................................12
4.2 CHANGES IN THE CELLULAR HANDSET SEMICONDUCTOR INDUSTRY LANDSCAPE .................................14
5. EVALUATING TEXAS INSTRUMENTS IN THE CELLULAR HANDSET
SEMICONDUCTOR INDUSTRY ............................................................................................................15
5.1 SWOT – STRENGTHS WEAKNESSES OPPORTUNITIES THREATS ............................................................15
5.2 SOURCES OF COMPETITIVE ADVANTAGE ..............................................................................................15
6. EMERGING STRATEGIES FOR TEXAS INSTRUMENTS IN THE CELLULAR HANDSET
SEMICONDUCTOR MARKET ................................................................................................................17
7. THE ROAD AHEAD FOR TEXAS INSTRUMENTS........................................................................19
REFERENCES............................................................................................................................................20
EXHIBITS ...................................................................................................................................................21
PGSEM 2008
Indian Institute of Management Bangalore -2-
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1. Introduction
1.1 Texas Instruments Inc.
Texas Instruments (TI) is engaged in the design and manufacture of semiconductors that are
at the cutting edge of technology. The company provides digital signal processing (DSP),
wireless, digital light projection (DLP) and analog technologies in the semiconductor
business domain. In addition to semiconductors, the company’s businesses comprise the
education technology business, which supplies graphing handheld calculators.
Texas Instruments was established by the name of Geophysical Service in 1930, the first
independent contractor specializing in the reflection seismograph method of geophysical
exploration. This industry relied heavily on the analysis of the electrical signals that were
generated by the seismographic methods for geophysical survey. GSI’s name was changed to
Texas Instruments in 1951 and GSI became it’s wholly owned subsidiary. In 1953, TI was
listed on the New York Stock Exchange. Incidentally it was in the 1950’s that TI acquired a
license from Western Electric to manufacture semiconductors.
TI has been an innovator and inventor par excellence in the semiconductor industry, it was
the first company to manufacture commercial silicon transistors for radios, the integrated
circuit was invented at TI by the Nobel laureate Jack Kilby in 1958, TI was the first company
to manufacture digital signal processors (DSPs) and the first single chip speech synthesizer
(made famous by ―Speak n Spell‖ featured in the movie ET). Over the years TI has built up
a core competence in the analog, digital and wireless domains on the basis of a solid
understanding of the core principles of signal processing and semiconductor manufacturing.
Leading-edge CMOS (complimentary metal oxide semiconductor) technology is the
foundation for TI’s signal processing products across its digital portfolio. TI has always mass
produced semiconductor products that have been at the cutting edge of technology, it was
among the first to mass manufacture chips using state-of-the-art 90-nm technology on
300mm wafers and 65nm production. TI has built up a reputation of producing chips with
lower power consumption, thus attaining a very favorable position in the lucrative wireless
and portable device markets.
In terms of market leadership, TI is the third largest semiconductor company in the world. It
is the number one producer of Digital Signal Processors. It is number one in analog with an
estimated market share of 14% in 2006. TI is currently number two in the wireless market
behind Qualcomm.
TI has been rated by its employees as one of the best semiconductor companies to work for
and has been consistently featured in the Fortune ―100 best companies to work for‖ list.
Texas Instruments is headquartered in Dallas, Texas and employs more than 30,000 people
worldwide. It has sales and R&D offices across the Americas, Asia, Japan and Europe. The
company recorded revenues of $13,835 million during the fiscal year ended December 2007,
a decrease of 2.9% over 2006. However the profit from operations has been better than that
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of the previous year. TI continues to maintain a gross margin > 50% and profit from
operations stands at ~30% which is good compared to the industry level averages in the
semiconductor industry.
1.2 Why Texas Instruments and the cellular handset semiconductor
industry?
The cellular handset semiconductor industry is one of the most dynamic technology driven
industries. Worldwide, more than one billion cellular handset units are expected to be
shipped this year. Every semiconductor manufacturing company would want to have a share
of this industry pie for the sheer volume and returns that it offers. However it is not easy for
incumbents in this market; as customers (i.e. handset manufacturers) get more concentrated
and the prices of mobile handsets keep going down, they face a number of challenges in
order to maintain the levels of profitability that they have been used to over the years.
The dynamic nature of this industry is best illustrated by recent happenings, during the
course of preparing this report, two of Europe’s largest players in the industry, ST-NXP and
Ericsson have announced a tie up to take on the market leaders, TI and Qualcomm. Over
the past five years there have been a number of acquisitions, spin offs and mergers. We
believe that this industry offers a good insight into the world of technology driven industries
where change is extremely fast paced.
Texas Instruments was the world leader in the cellular handset semiconductor industry till
the 1st quarter of 2007, when it was overtaken by Qualcomm. The strategies followed by TI
in this industry make an interesting read, since in spite of its slip; TI continues to remain
profitable in wireless. We believe that this analysis will illustrate how incumbents adapt to
change, and how the strategies of a firm need to evolve in a fast paced, technology driven
industry.
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Indian Institute of Management Bangalore -4-
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2. The cellular handset semiconductor industry
2.1 Overview of the industry
In this section we present a brief overview of the cellular handset semiconductor industry.
Throughout this report, the terms cellular and wireless are used interchangeably.
The value chain
Wireless Wireless Wireless *indirect
Infrastructure Infrastructure Service handset
Semiconductors Manufacturers Providers* sales
Wireless Wireless Direct
Handset Handset Handset
Semiconductors Manufacturers Sales
Consumer
Handset
Accessories
Application
Software and
Games
The figure shown above outlines the interactions between the various players in the wireless
industry. The end consumer is aware of four players:
The wireless service providers. Services offered by these companies are usually
differentiated on the basis of tariffs and cellular network technologies that they
provide. In North America, handsets are usually sold via the service providers who
offer large rebates in order to lock in customers.
Examples: Verizon, Vodafone, Airtel, etc.
The wireless handset manufacturers. In Asia, handsets are normally sold directly
through handset retailers.
Examples: Nokia, Motorola, Samsung, etc.
The application software and gaming manufacturers. These companies cater to the
ever growing demand for differentiated applications and games on mobile phones.
Example: mCheck, EA Mobile, etc.
The handset accessory manufacturers. These companies sell accessories that
compliment the wireless handset. Product offerings from this sector include
multimedia devices, storage cards, GPS receivers, etc.
Example: SanDisk, Jabra, etc.
The overall wireless industry as illustrated in the value chain diagram is estimated to be
worth over one trillion dollars.
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Our analysis of TI is centered on the cellular handset semiconductor industry. The cellular
handset semiconductor industry feeds in to the wireless handset industry which integrates
the silicon chip into a distinct form factor, adds the necessary software to make the mobile
device work, brands the device, and then sells it to the end consumer. There is no direct
interaction between the end consumers and the semiconductor manufacturers.
Wireless handset manufacturers
The buyers in this industry i.e. the customers for wireless handset semiconductor chips, are
the wireless handset manufacturers. The wireless handset manufacturers usually segment
their product offerings on the basis of price points. This kind of segmentation gives rise to
three distinct types of phones, low cost entry level phones, mid-range multimedia feature
phones and high-end multimedia phones and smartphones (Exhibit 2).
Cellular phones are also segmented on the basis of standards that are used to achieve
communication over the air interface i.e. modem technologies. The oldest digital modem
technology standard in use today is the GSM standard which is considered a 2G (generation)
technology. There are a number of other technology standards in use including CDMA,
TDMA, iDEN etc. Exhibit 1 shows the breakup of the world mobile subscriber base
between the various cellular modem technology standards. CDMA and GSM phones cannot
work interchangeably i.e. a CDMA phone will not work in a GSM network environment and
vice-versa.
The main concerns for a wireless handset manufacturer are - enhanced user experience and a
fast time to market (TTM) for new innovative phones, all this at a lowered cost of
production.
Cell phones sold to the end consumer are complimented by a number of accessories for
multimedia, connectivity and storage. In line with this we find that there is a cell phone
accessory and cell phone application software business that compliments the handset
manufacturers.
The major handset manufacturers of the world include Nokia, Samsung, Motorola, Sony
Ericsson, LG, Sagem, Panasonic, NEC, Fujitsu, BlackBerry, Kyocera etc.
Exhibit 3 provides cell phone sales numbers for 2007.
Wireless Semiconductor Manufacturing
Wireless semiconductor manufacturers produce two types of chips: i) single chip solutions,
where the modem and the application processor is integrated into one chip and ii)
standalone application and standalone modem processor (also called baseband) chips.
The single chip solutions are usually targeted at the low cost and feature phone segment of
the handset market. Stand alone processors are targeted at more expensive phones where
multimedia rich features and smart phone capabilities are the norm. Single chip solutions
when used; drastically reduce the bill-of-materials (BOM) for handset manufacturers.
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Semiconductor chip manufacturers also segment their products on the basis of the cellular
network technology that their modem (a.k.a. baseband) supports.
The silicon technology process that is used to manufacture the phone is a major source of
differentiation for the semiconductor manufacturer. Latest cutting edge manufacturing
process technologies bring down the overall cost of production for semiconductor chips. All
manufacturers do not pocess the fabrication facilities (fabs) that are required for the
manufacture of silicon chips. There are a number of independent silicon foundries that
provide their services to such manufacturers.
Chips that are produced for the wireless handset industry are different from the chips that
are manufactured for the general purpose computer desktop and laptop industry. The major
point of differentiation is the power consumed; typically wireless chips consume a few
hundred milliwatts of power as compared to a few watts consumed by desktop chips.
The major cellular handset semiconductor manufacturers of the world are: Qualcomm,
Texas Instruments, ST-NXP (recently in a tie up with Ericsson), Infineon, MediaTek,
Broadcom, Freescale Semiconductors etc.
Of these Qualcomm, MediaTek and Broadcom are fables manufacturers. The major silicon
foundries that cater to such companies are TSMC, UMC, SMIC, etc.
2.2 Analysis of the industry structure
In this section we analyze the cellular handset semiconductor industry using Porter’s ―Five
Forces‖ industry analysis model.
Barriers to entry
- The industry exhibits a need for high economies of scale in order to remain profitable,
the fixed cost vis-à-vis R&D investments and equipment required to manufacture chips is
very high.
- This is a highly specialized industry; semiconductor chips for wireless handsets have
specific technology requirements. The technologies that are required to make a wireless
handset chip have been developed over the years by the various firms in this industry and
are protected well by IP. Any new entrant will have a long learning curve before it is able
to catch up with the incumbents in terms of developing the expertise required to design and
manufacture wireless handset chips.
- Handset manufacturers would be wary of signing up deals with new entrants whose
technology is not yet proven, however new entrants with a significant background in
semiconductor design and manufacturing in other domains may not face this entry barrier.
Overall we believe that the barriers to entry in this industry are moderate to high.
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Supplier power
- Firms that do not pocess their own silicon fabs are dependent on silicon foundries
for the manufacturing of the chips. Silicon foundries do not provide differentiated
technologies since the manufacturing process technology is usually developed (or co
developed with the silicon foundry) by the chip designing firm itself.
- There are several hardware IP (intellectual property) blocks that are supplied to the chip
designers, however these specific IP blocks are not highly differentiated and it is always
possible for the cellular handset semiconductor company to backward integrate or
develop the required hardware IP block in house.
Overall we believe that the supplier power in this industry is low.
Buyer power
- The wireless handset industry (the buyer industry) is highly concentrated; this is evident
from Exhibit 3.
- The wireless handset manufacturer is price sensitive; the overall BOM is a very important
factor in the profitability of a wireless handset manufacturer.
- The switching cost for the wireless handset manufacturer is very low at the starting
phase of the development of a new cell phone.
- Differentiated product offerings from the semiconductor supplier make it easier for a
cellular handset semiconductor firm to negotiate with the buyers.
Overall we believe that buyer power in this industry is high.
Rivalry
- The industry growth rate is healthy; it is directly linked to the growth rate of the handset
industry which has been growing at a rate of 16% through 2007.
- The market is highly concentrated with the big four players (Qualcomm, TI, ST-NXP-
Ericsson, Infineon) having a share greater than 60% (Exhibit 5).
- The product offerings in the 2.5G segment are not highly differentiated leading to a price
based rivalry in this segment.
- When going in for the design and manufacture of a new handset, the wireless handset
manufacturer follows an intense screening process that of the product offerings from the
various firms in the cellular handset semiconductor industry, since no firm enjoys a niche
in any segment there is an intense rivalry between the various firms in order to bag a
―design-in‖ with the wireless handset manufacturer.
Overall we believe that the rivalry within this industry is moderate to high.
Substitutes
- General purpose processors from the PC world could substitute special purpose
wireless processors. This would require the following: the power consumption of these
processors is reduced drastically and they are enhanced to contain a lot more features and
peripherals on a single chip. If such a thing does happen then the desktop processor would
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Group Project PGSEM 2008
have evolved to be a wireless handset application processor. General purpose processors
from the PC world are not credible substitutes for wireless processors.
Overall, the threat from substitute products is very low.
Industry Attractiveness
This industry may look unattractive on basis of high buyer power and possible high
rivalry among the incumbents, however on the basis of the phenomenal growth rate
the opportunities that this industry provides over the long term (it is estimated that by 2010
two thirds of the worlds population would own a cell phone, many would be first time
buyers and many would be repeat buyers) we believe that it is an attractive industry.
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Indian Institute of Management Bangalore -9-
10. Strategic Management
Group Project PGSEM 2008
3. Texas Instruments in the cellular handset semiconductor
industry
3.1 Texas Instruments – positioning in the cellular handset industry
Texas Instruments’ wireless portfolio is a direct result of its commitment to the growth of
the wireless industry. TI provides all the elements needed to bring mobile devices to any
segment of the wireless market (Exhibit 6). It has product offerings in all segments of the
handset market.
The entry level handset segment is catered by TCS23xx ―Locosto™‖ family of
products. This family enables Ultra Low-Cost (ULC) handsets targeted at emerging,
fast-growing regions as well as established cost-sensitive markets.
The feature phone segment is catered to by the OMAP-Vox solutions; this adds
modem and application processor functionality on a single chip.
High end phones, Smartphones and PDAs, and solutions looking to deliver the most
differentiated, multimedia-rich applications that will attract users to next-generation
devices and services are catered by OMAP™ processors.
Besides this TI has a product offering in the two manufacturing based segments of this
industry. The OMAP-Vox solutions are single chip modem and application processors and
the OMAPTM processor solutions are pure application processors.
TI has leveraged its DSP expertise to offer differentiated high performance solutions to
handset manufacturers in the wireless segment. TI has always been at the cutting edge of
technology, it has an excellent track record in the development of fabrication processes for
silicon, its wireless offerings are backed by manufacturing and execution excellence.
TI does not come across as a complete software and hardware systems solution provider. TI
has no complete solution offerings (E.g.: CellAirityTM from Broadcom, Brew from
Qualcomm, etc). To develop software for its product offerings TI relies on a vast eco-system
that it has created with a number of partner companies.
In the modem sphere where TI does not have cutting edge technology product offerings, it
usually ties up with other players to offer a proven bundled solution.
TI has been a historical supplier to Nokia, the largest handset manufacturer in the world.
3.2 Texas Instruments current strategy
In the current market scenario, TI’s strategy has been to target big customers (Nokia,
Motorola, Samsung and LG) with custom software and hardware product offerings. Besides
custom offerings of the catalog product lineup TI has got specific design-ins with Nokia to
implement and manufacture Nokia specific processor designs and products.
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Indian Institute of Management Bangalore - 10 -
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In terms of software for its wireless offerings, TI has traditionally not charged its customers
for the software that is delivered along with its hardware. Software is viewed as a strategic
enabler for TI and not as a revenue generator.
TI has ignored the grey market in China, or for that matter the grey market for cell phones
all over the world. The grey market is essentially an undifferentiated phone market, where
the handset manufacturer simply integrates standard components of hardware and software
to get a standard undifferentiated and unbranded phone into the market. The grey phone
market is mainly centered on the Chinese and Asian markets and caters to the low cost
segment of the market.
3.3 The importance of corporate level strategy
TI is a corporate entity, with a number of SBEs (strategic business entities) catering to its
semiconductor and education technology businesses. There is a vast amount of synergy that
can be established between the various semiconductor businesses. As we have already
mentioned, TI has leveraged its expertise in the DSP and Analog domain to provide cutting
edge products in the Wireless domain. TI will find economies of scope in ensuring that the
various SBEs co-ordinate their R&D and product offerings. This requires a corporate level
co-ordination between the various SBEs. We believe that a corporate level strategy is
important for TI to ensure that its wireless business leverages other TI businesses in order to
achieve greater profitability.
The corporate level strategy that is of consequence to the wireless business within TI
includes, the manufacturing strategy (related to the fab less model for manufacturing), the
business model strategy and the decision to exit markets where the competition becomes
purely price based.
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4. The competition and emerging trends in the cellular handset
semiconductor industry
4.1 The competitors and competitor strategies
Qualcomm
Qualcomm, after nearly a decade of trying, now controls the two standards — CDMA2000
and WCDMA these technologies are or will be behind just about every cellular system in the
world. Both are based on technology Qualcomm developed, called CDMA (code division
multiple access). Qualcomm gets royalties for every CDMA phone sold and for CDMA-
based equipment. Virtually every 3G network will be based on Qualcomm's CDMA. GSM
will migrate to WCDMA.
Qualcomm has a unique business model of licensing its technologies, a model from which it
derives a significant portion of its revenue.
Qualcomm was one of the leading performers among handset chipset makers in the first half
of 2008, increasing its 3G handset market share by working with Nokia and High Tech
Computer (HTC). Other handset vendors such as Research in Motion (RIM) and other
Japanese vendors are also interested in Qualcomm's chipsets, which may help it maintain its
market share in the second half of the year.
Qualcomm has been in several legal tussles with competitors (notably TI and Broadcom)
over patent infringements. It has recently reached an agreement with Nokia, wherein the two
parties have agreed to put their differences aside and cooperate through a mutually beneficial
partnership.
ST-NXP-Ericsson
ST and NXP teamed up for the creation of an industry leader mid 2008. The new company
that is formed will be IP rich, with transfer of over 3500 patent families and hundreds of
licenses from the parent companies. This partnership is expected to bring in complementary
product and customer portfolios under one brand. This partnership has received a strong
endorsement from key customers.
The stated goals of the new entity include, focus on leadership in multimedia convergence
applications to grow faster than the market, and to follow a lighter asset business model.
A new merger has been announced between this newly formed company and Ericsson
mobile platforms. The combined entity is expected to be the third largest wireless
semiconductor entity behind Qualcomm and TI. The new entity has the unique position of
being a supplier to 4 out of the 5 handset manufacturers (Motorola being the only
manufacturer left out).
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Infineon
Infineon’s cellular ICs include solutions for GSM/GPRS, EDGE and 3G/UMTS solutions.
It has sought to leverage its strengths in power management and system integration to
design low complexity, low cost and high performance chips. The company recently
announced the latest additions to its single chip X-GOLD family of cellular ICs. Infineon’s
highly integrated power management features enable industry leading battery life standards.
The company does not have an application processor family that complements its rich and
highly competitive baseband solutions. Secondly, it does not have a complete set of mobile
connectivity products. Infineon will not be in a position to compete with the likes of
Qualcomm, Broadcom and STM, all of whom have a complete portfolio to build single-stop
cellular platforms.
Infineon has a major order from Nokia for delivery of its low cost GSM/GPRS solutions
for the low cost mass market entry level handset segment.
MediaTek
The supplier has risen rapidly in the cellular chip market to capture 10% of the 2006 $3.4-
billion GSM/GPRS baseband market. MediaTek is a broad cost leader and has most of its
target markets in China and regions around China.
MediaTek plans to make foray into 3G-chip market after completing the acquisition of
Analog Devices Inc.`s handset-chip. Following the acquisition MediaTek will also gain
access to new market opportunities, including LG, Samsung, and Sharp. It will contract
Taiwan Semiconductor Manufacturing Co. (TSMC) by the end of this year to make its
wideband code division multiple access (WCDMA) chips using 65-nanometer process for
Samsung’s handsets. Industry watchers have estimated that the verification of MediaTek`s
3G chips at TSMC would go as smoothly as expected since ADI has set up partnership ties
with TSMC before selling its handset-chip asset to MediaTek.
Broadcom
Broadcom entered this market with successful acquisitions. It paid about $260 million to buy
Santa Clara's Mobilink Telecom Inc. in 2002. Two years later, it paid $100 million for San
Diego-based Zyray Wireless Inc. and $123 million for Britain's Alphamosaic Ltd.
Broadcom is beginning to ship 3G chipsets, and Nokia recently selected Broadcom's cellular
processor for future equipment using EDGE (Enhanced Data Rates for GSM Evolution), a
fast version of GSM (Global System for Mobile Communications).
Broadcom has an impressive track record of taking over established markets. It became the
leading vendor of Ethernet controllers during the shift to Gigabit Ethernet. Similarly, early
deployment of 802.11g made the company number one in WLAN chips. Broadcom has
developed the key components for a complete cell phone, it can now use integration to
reduce its customers' costs and simplify their designs. Cell phones represent Broadcom's
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toughest challenge yet, but the company has the history and technology to succeed where
others have failed.
4.2 Changes in the cellular handset semiconductor industry landscape
The visible changes in the cellular handset industry are driven by the end consumer’s usage
trends. Convergence is the new key word; there is a convergence of portable entertainment,
data networks and voice communications. In such an environment, the modem is becoming
a commodity, a highly standardized and undifferentiated product. The focus is clearly on the
―user experience‖, software and applications that enable this.
Traditionally handset manufacturers had a single supplier policy for semiconductors or had
their own in-house semiconductor manufacturing units. Over the years, handset
manufacturers have spun off their semiconductor operations (Siemens spun off Infineon,
Motorola spun off Freescale etc.) and moved on to a strategy in which they source
semiconductors from multiple vendors (Motorola now sources chips from Freescale and
TI).
There are a number of strategic tie ups and mergers happening in the industry right now, ST-
NXP merged in order to get the economies of scale required to remain profitable in this
industry. Interestingly this entity has recently tied up with Ericsson to form a large
semiconductor entity that supplies to 4 of the 5 major handset manufacturers.
Developing economies are leapfrogging cellular technologies in order to save costs on
infrastructure setups. A country with an established 2G (GSM) based network would look to
migrate directly to 4G (WiMax, LTE) offerings in the future bypassing the 3G (CDMA)
route, as is happening in Pakistan.
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5. Evaluating Texas Instruments in the cellular handset
semiconductor industry
5.1 SWOT – Strengths Weaknesses Opportunities Threats
The following diagram outlines our perception of the strengths, weaknesses, opportunities
and threats that TI faces within the wireless handset semiconductor industry.
Strengths: Opportunities:
-Vertically integrated manufacturing -Emerging 4G technologies (LTE
and WiMax)
-Diverse product line containing a -Strategic tie ups with companies
number of complimentary products
that compliment TI’s core
-Synergy between business units competencies
-Well developed eco-system to -Leverage on the open source
support its OMAPTM line of wireless software development community to
processors work on TI products
Weaknesses: Threats:
-Inability to survive in markets -Consolidation among competitors.
where cost leadership is the norm
-Lack of in-house 3G baseband -New entrants with the capabilities
and resources could always enter
modem chips this market – E.g.: Intel, NVIDIA
-No emphasis on software as a
source for revenue
5.2 Sources of competitive advantage
In this section we enumerate the factors that give, TI a competitive advantage in the wireless
handset semiconductor industry.
1. Expertise built over the years. TI has built up vast expertise in satisfying the needs
of the wireless market over the past 20 years.
2. The R&D staff of TI is highly experienced in the wireless domain.
3. There is a lot of IP (intellectual property – patents, trademarks copyrights etc.) with
TI in the wireless domain.
4. Vertically integrated manufacturing. TI possesses the expertise to design,
manufacture and sell its wireless chips.
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5. Cutting edge of technology. TI has always worked at the cutting edge of
technology in all the wireless product offerings. E.g. DRPTM technology (stands for
Digital Radio Processing).
6. Business synergy. There is a lot of synergy between the Wireless, DSP, Analog and
DLP businesses of TI. This synergy when exploited can provide economies of scope
and allow TI to leverage expertise into the multiple areas into which the wireless
handset is permeating.
7. Development centers located around the world. TI has R&D and manufacturing
centers located all over the world in different time zones. There is an advantage in
this split of facilities that will allow the organization to function 24X7 albeit through
different geographical locations.
8. Eco – System partners. TI has enabled a number of partner companies in the
wireless space through the OMAPTM Developer Network and the OMAPTM
Technology Centers. These centers have enabled partner companies to enter a
mutually beneficial tie up with TI to demonstrate proven innovative designs on
applications using TI’s wireless products. The eco system acts as a source for
complimenter products that add value to the customer and at the same time enhance
the sale of TI’s wireless products.
The factors that are unique to TI and give it a competitive advantage by virtue of being its
core competency are its continuous effort to work at the cutting edge of technology; it’s
built up expertise, the vast eco-system that TI has developed, and the IP that it
possesses in the wireless domain.
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6. Emerging strategies for Texas Instruments in the cellular
handset semiconductor market
In the previous section we have evaluated Texas Instruments in the wireless semiconductor
industry. In this section we would like to enumerate the strategies that TI could follow in
this industry given the changing nature of this industry.
1) Target inorganic growth through acquisitions.
TI has some well defined domains in which it has no position of strength, e.g.: the 3G
modem space and the broad cost leader entry level phone space. TI could target acquiring a
player in the above mentioned fields and compete successfully in those fields (acquire a 3G
modem company like Interdigital).
2) Develop Technologies in house.
TI can target organic growth, and ensure that it scales up its R&D to cover the gaps in its
current wireless product line up. Targeted R&D in 3G modem technology and emerging 4G
technologies like WiMax and LTE (Long Term Evolution) is the need of the hour.
3) Strategic tie ups.
TI can enter into strategic tie ups with companies that can compliment its products. The
tie up could be on the basis of a pure marketing strategy wherein it can offer bundled
solutions to a customer or it could also be a technical tie up wherein TI works with the
collaborator to ensure that complimentary products that provide high value are developed
and sold under the TI name. Strategic tie ups would be most suitable in the wireless software
space where TI does not have a strong presence.
4) Venture Capital Funding
TI can target venture capital funding for companies that can demonstrate creative
applications using TI wireless technology. In the short run it can direct the strategy of such a
company and in the long run can go in for either a sell off or an acquisition depending upon
the need.
5) Sell off
TI can sell off its wireless semiconductor business. TI’s wireless semiconductor business
is one of the finest in the world and if TI does not feel that this fits into its strategic business
plans, it could target a sell off immediately. TI can capitalize on its position of strength and
command a premium price in case it goes for a sell off.
6) Broad cost leadership
TI can target to become a broad cost leader by manufacturing its legacy systems at a very
low cost of production and target the entry level phone segment with a very low cost high
performance product.
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Of all the strategies we have enumerated above, we immediately rule out the following:
1) Sell off
Given its current position of strength in the wireless segment, TI would not consider a sell
off. The wireless business (contributing to one third of TI’s current revenues) is large and
profitable (> 50% gross margins). Given TI’s vast experience and expertise and its current
position, a sell off is definitely ruled out. Any thought of a wireless business sell off would be
premature and is not the way ahead for TI.
2) Broad Cost Leadership
TI has never been a successful broad cost leader. In the past it has sold off businesses in
which attempts at broad cost leadership have failed (digital watches, laptop computers etc.).
By going in for broad cost leadership, TI would also have products that are in the focused
differentiator and the broad differentiator category. In such a scenario TI is most likely going
to lose market focus and end up as a stuck in the middle player.
3) Acquiring a Broad Cost Leader
On the basis of the arguments that we have put forth in 2), moving into a position of
broad cost leadership is ruled out.
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7. The road ahead for Texas Instruments
In the previous section we have discussed the various options that are open for TI and the
strategies that it could follow. In this section we would like to define our view of the strategy
that TI should pursue in the wireless semiconductor handset industry.
1) Strategic tie ups
Strategic tie ups have a number of advantages over acquisitions, they allow for flexibility;
it is easier for TI to go in for tie-ups with companies that have complimenting technologies
and products. E.g.: TI’s tie up with Ericsson for 3G modem integration with OMAPTM
processors. However tie ups are fraught with risks due to changes in the external
environment E.g.: Ericsson’s merger with ST-NXP a TI rival. From a perspective of risk –
vs. – return we believe that TI is better off going in for strategic tie ups over large scale
acquisitions. Strategic tie-ups can also help in enhancing TI’s eco-system to develop better
software solutions on TI processors, an area in which TI, as a standalone entity, has not
been in a position of strength in the wireless domain. By making use of this eco-system TI
can concentrate on its core competence of designing and manufacturing wireless handset
processors, and its eco-system partners can develop the differentiated software applications
to run on these processors.
2) Funding new companies
This is one of the best options that TI has in order to ensure that creative minds outside
the company work on, and demonstrate innovative new applications using TI technology.
Targeting start up firms, or established small firms would be a good idea provided the
product offering of the company is worth the investment and is inline with the strategic
requirements of TI. There is a certain element of risk involved in pursuing this option;
however the returns can be phenomenally high. E.g. TI could fund a company that makes
innovative use of its low end wireless chips and uses it creatively in a completely different
high growth industry. While funding such companies TI should assume the role of a venture
capitalist and ensure that it helps the company in terms of directing its strategy rather than
dictating the strategy and killing creativity.
3) Continue in house development of cutting edge solutions
TI missed out on the 3G modem bandwagon since it lacked a 3G baseband solution;
however it should not let this happen with 4G technologies. 4G technologies are still being
defined and this definition is at a very early stage. TI should aggressively pursue R&D on
these technologies targeting a solid IP portfolio that will allow it to provide differentiated
solutions in the future.
Besides the abovementioned points, TI should continue to focus on improving its
execution efficiency, which should directly lead to an increase of gross profit margins in
the wireless business. TI should continue with its policy of partnering with silicon foundries
for the development of new process technologies, this will save TI a lot of capital
expenditure. The practice of supporting the big customers with custom design and
production programs involving both hardware and software should continue. TI should
also look out to acquire small companies that have good product offerings, which can fill
up the gaps in its current wireless product portfolio (namely 3G baseband processors).
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Exhibit 1
Subscriber Statistics – As of Q4 2007.
Source: http://www.gsmworld.com/news/statistics/pdf/gsma_stats_q4_07.pdf
Source:
http://focus.ti.com/general/docs/wtbu/wtbudocumentcenter.tsp?templateId=6123&navig
ationId=12669#61
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Exhibit 2: Price based market segmentation
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Exhibit 3 Mobile Phone Sales in 2007 and 2006.
Source: http://www.gartner.com/it/page.jsp?id=612207
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Exhibit 4: TI income statement 2007
Source: http://www.ti.com/corp/docs/investor/ar07/ar07.pdf
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Exhibit 5: Wireless Semiconductor market share
Source: http://www.st.com/stonline/press/news/pressroom.php
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Exhibit 6 TI Positioning in the wireless semiconductor industry
Source:
http://focus.ti.com/general/docs/wtbu/wtbugencontent.tsp?templateId=6123&navigation
Id=11988&contentId=4638
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