Within the $475B+ semiconductor industry, as TSMC semi manufacturing surpasses Intel and industry chips achieve higher quality and become more sophisticated, hardware functionality complexity is also increasing the need for better product development and test validation procedures and technologies related to circuit board design and PCB product manufacturing assembly of from a early chip design and validation perspective.
Demand for better electronics design automation (EDA) software tools and more comprehensive product design-for-manufacturing (DfM) is playing more importantly into determining product life cycles, which continue to become shorter between OEM hardware product launches and in bringing new product introductions (NPI) to market.
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Software vendors like Synopsys, Cadence and others are using subscription licensing models. This helps create both stickiness once installed at customer locations, plus material visibility in the supply chain.
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From a vendor perspective, R&D spending can be more closely monitored based on user input and improvement opportunities submitted. Nonetheless, value creation appears in-house users and from the vendor’s perspective.
Market share for third-party semiconductor design intellectual property vendors
No longer is it enough that EMS providers simply claim to have in-house electronics design services. More and more discussions with electronics OEM decision makers are producting dialogue with more emphasis on the specific electronics design automation tools used by their supply chain vendors during due diligence when evaluating DfM capabilities of contract EMS manufacturing partners.
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OEM teams tasked with finding EMS manufacturing product design services and responsible for applying critical sense when auditing of electronics original design manufacturing (ODM) services firms are burdened with carrying even more accountability in terms of making more informed choices with PCB design and assembly vendors and bringing products to market.
Cost of system-on-chip (SoC) design
As some market footprints in both hardware platform and chips become smaller, while features and fucntions increase, especially in IoT environment driven by more connectivity and higher volumes of data, the systems-on-chip (SoC) costs will increase.
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