The semiconductor market is quietly transitioning, Intel, Nvidia, MU have seized the initiative (on)

May have seen such an advertisement: A girl lying on the grass with an iPad, someone asked her: What is in your computer? She asked back: What is a computer? In the long run, as a computer chip maker, Intel’s business landscape is being eroded by this kind of television advertising.

The ad has a critical component, but the truth is that, as GenXer knows, computers are rapidly becoming something else. Therefore, some people may be dissatisfied with such similar advertisements. In fact, these growing children almost do not like to use computers. My four-year-old daughter is scarcely even used a computer.

Where do they turn their strategy? Intel began to recognize this after the Invista and MU, so as to focus on other markets. But Intel, as a pioneer, has a lot of money and talent to reposition its strategy and has begun to do so. This is a daunting task, similar to the Titanic's turn, but this strategy shifts to data-rich market segments that are beginning to make a profit.

Semiconductor Industry Overview

The overview of the semiconductor industry seems to be a bit old-fashioned, but for those newcomers may play a guiding role. The semiconductor industry consists of companies that design, manufacture, and sell products: discrete semiconductors, optoelectronics, sensors, and integrated circuits (also known as "semiconductors" or "chips"). Some companies participate in the complete product development cycle, while others only focus on manufacturing (eg, foundry) or design and market (eg, fabless company).

The main part of revenue comes from sales of integrated circuit products, including four types:

Commercial integrated circuit

RAM;

microprocessor;

Complex SoC (System on Chip);

Commercial integrated circuits act as processors for routine tasks required for independent, simple electronic devices (eg, small, single-target applications). Memory products act as temporary storage and translations for information from the device CPU. The microprocessor is the computer's CPU or "brain." They contain the various tasks and logic required to perform multifunction and relatively complex device tasks (eg, mobile phones, tablets, and digital cameras), and in sequence with other chips (eg, memory) or components (eg, sound cards and Graphics card) integration.

Finally, a complex SoC acts like a CPU but does not require a connection chip or external components. This is because the SoC contains the CPU and other components such as graphics processing units (GPUs), memory chips, power management circuits, and network connections (eg, 3G, 4G/LTE, and WiFi). According to reports, the output value of the global chip market in 2017 is about 419 billion U.S. dollars, and it is expected to reach 451 billion U.S. dollars by 2018.

The end market for industry services is broadly categorized according to the end use and application of the product, and includes the following six items:

Data processing (also called "calculation", "computer");

Communication (also called "network communication");

Consumption (also known as "consumer electronics");

industry;

automation;

Military and aerospace;

In data processing, chips are used in personal computers (eg, desktops, laptops), servers, and related hardware (eg, printers); in the area of ​​communications, chips are used in unlimited and wired communication infrastructures and devices (eg, smart phones). , notebooks and broadband devices); in the consumer market, chips are built to build home appliances and home entertainment devices (eg TV and game consoles); in the industrial market, chips form part of the power supply equipment, and specific to the specific industry environment. Use equipment.

Continuing, in the logistics and retail sectors, chips are used in bar code scanners and point-of-sale terminals; in the medical field, chips are used in ultrasound imaging devices and patient monitors; in the automotive market, chips are used in electronics such as lighting and power steering Components; in the military and aerospace industries, chips are used for custom applications.

The following is communication and data processing accounted for the proportion of semiconductor product revenue in 2017.

Source:SemiconductorIndustryOutlook-December2017

Although communications and computers have always been traditional, reliable end markets, the 2017 report presents new opportunities. The Internet of Things, automotive, consumer electronics and industry all regard wireless communications as the most important sales driver. In terms of product type, sensors and MEMS have the greatest growth potential, followed by microprocessors and optoelectronics.

Semiconductor company competition comes from product quality (such as: performance, reliability, energy efficiency, integration, innovative design and functionality), as well as external factors such as price, brand awareness, technical support, and availability.

Intel forced to transform

Intel is engaged in the design, manufacture and sale of semiconductor products. From its founding in 1968 to 2015, it is mainly developing components and platforms for the designers and manufacturers of servers and personal computers. Over the years, this major business has been centered on the PC.

Intel has led the semiconductor industry for a long time in terms of manufacturing technology, shipments, and revenue because the PC is the main personal computer device. However, as mobile devices sold more than PCs in 2011, Intel’s product demand fell because these devices required powerful and power-efficient, low-cost processors, and Intel could not meet these requirements at the time, which caused Intel to miss out Growth opportunities in the field of mobile devices.

In mid-2016, PC sales continued to decline and mobile hard drives continued to decline. Intel changed its strategy and announced that it began to shift from a PC-centric to a data-centric strategy in order to be able to occupy the next technological frontier.