Combating cost through collaboration
Everyone uses electronics. As daily life becomes more digital and more and more devices become software defined and interconnected, the prevalence of electronics will inevitably rise. Semiconductors are what makes this all possible. So, it is no surprise that the entire semiconductor industry is on a path to being a $1 trillion market by 2030.
While accelerating demand will help semiconductors reach impressive gains, many chip makers may be held back by the costs of semiconductor design and manufacturing. Already, building a cutting-edge fab costs about $19 billion and the design of each chip is around $500 million investment on average. With AI integration on the rise in consumer devices also fueling growth, companies will need to push the boundaries of their electronic design and manufacturing processes to cost effectively supply chips at optimal performance and environmental efficiency.
Creating next-generation semiconductors is expensive. Yet, chip manufacturers must continue to develop and fabricate new designs that require ever-more advanced fabrication technology to efficiently create semiconductors for tomorrow’s software-defined products. To handle the changing landscape, businesses within the semiconductor industry will need to rely on the comprehensive digital twin and adopt a collaborative semiconductor business platform that enables them to partner both inside and outside of the industry.
Thinking outside the organization
Tackling rising fabrication costs can be a systemic objective. The semiconductor industry is unique in that it has a comparatively broad and intricate value chain that can span across several markets. From suppliers to industrial manufacturers, chip makers have a wide range of places to seek out allies.
To foster partnerships that will ensure success. Companies must widen their intelligence ecosystem to include other organizations through digital threads that enables connectivity both inside and outside each individual organization. Every enterprise within the value chain must have similar aspirations while being willing to be transparent with their data. With access to data in the product’s complete ecosystem, organizations can find innovative ways to optimize production while cutting operational costs.
The emergence of collaborative alliances within the semiconductor industry as well as across related industries will break down traditional organizational boundaries, enabling unprecedented levels of cooperation across and beyond the semiconductor industry. The result will be extraordinary innovation that leverages collective expertise and capabilities.
Already, well-established semiconductor companies have begun partnering to move forward in this rapidly evolving ecosystem. When Tata Group wanted to build fabs in India. Analog Devices, Tata Electronics, and Tata Motors signed an agreement that would allow Tata to use Analog Devices’ chips in its applications like electric vehicles and network infrastructure. At the same time, Analog Devices will be able to take advantage of Tata’s plants to fab their next-generation chips.
Get ahead of the trend
And this is just one example of the many innovative collaboration starting to emerge. The marketplace is now moving towards cooperation and partnerships that have never existed before across different industries to develop the technology and capabilities needed to move forward. To ease this transition, the semiconductor industry is a cross-industry collaboration environment that will facilitate these strategic partnerships.
In essence, greater connectivity through digital threads both within fabs and among the greater semiconductor ecosystem will propel the industry towards a $1 trillion market. Semiconductor needs an inclusive, straightforward collaborative platform that will help organizations both inside and outside the industry share the burden of operational costs as prices skyrocket to create next-gen designs.
Siemens Digital Industries Software helps organizations of all sizes digitally transform using software, hardware and services from the Siemens Xcelerator business platform. Siemens’ software and the comprehensive digital twin enable companies to optimize their design, engineering and manufacturing processes to turn today’s ideas into the sustainable products of the future. From chips to entire systems, from product to process, across all industries. Siemens Digital Industries Software – Accelerating transformation.
