Autumn 2014

McKinsey on Semiconductors, Issue 4

In this issue, we expand our analysis of an industry in transition. We size up the opportunity for the ‘Internet of Things,’ explore new sources of innovation and growth, and offer ways to optimize output.



The Internet of Things: Sizing up the opportunity

– This connectivity trend is now recognized as a source of growth for semiconductor players and their customers. Here we consider the opportunities and constraints for components manufacturers.

Making connections: An industry perspective on the Internet of Things

– The CEO of semiconductor company CSR, Joep van Beurden, discusses the progress—and growing pains—of the Internet of Things market.

Semiconductors in China: Brave new world or same old story?

– China is stepping up efforts to become a major player in semiconductor design and manufacturing. If it succeeds, integrated-circuit companies around the world could face significant risks and opportunities.

Trend spotting: Qualcomm executives consider the next wave of growth in semiconductors

– Steven Mollenkopf and Murthy Renduchintala offer their take on the technology, talent, and business strategies required to keep pace in an industry that continues to evolve.

Executive perspective: Vincent Roche, CEO of Analog Devices, on the next wave in semiconductors

– The CEO of a multinational technology firm discusses the state of innovation in the semiconductor industry.

How big data and connected consumer products could boost the market for MEMS technology

– MEMS technology continues to thrive in familiar markets, but with the advent of the Internet of Things, a significant new opportunity is emerging for industry players.

How semiconductor companies can get better at managing software development

– They may want to consider adopting one of four basic organizational structures.

Standing up to the semiconductor verification challenge

– Companies should seek faster, more cost-effective ways to test the quality of complex system-on-a-chip devices.

By the numbers: R&D productivity in the semiconductor industry

– Four insights on the people, places, and processes that could help companies optimize output.

Advanced packaging technologies: The implications for first movers and fast followers

– Adoption of 3-D technologies appears inevitable, creating both opportunities and risks.

Fab transformation: Four markers of excellence in wafer production

– To succeed with their lean initiatives, managers should focus on improving plant uptime, equipment utilization, process variability, and product quality.

Fab diagnostics: A data-driven approach to reining in the cost of indirect materials

– Companies that use a set of core analytics to assess consumption patterns can gain better control of production expenses.

Beyond the core: Identifying new segments for growth through value-chain partners

– A systematic process for assessing supplier and customer capabilities and relationships can help semiconductor companies identify adjacent markets and promising opportunities.



McKinsey on Semiconductors, Issue 5

The big question facing the sector is what it will take to move beyond the current period of sluggish returns. Will the next year herald the start of the Semi 2.0 era—a new period of improved performance and value creation? Or will revenues and growth remain relatively flat? The articles in this issue directly address these questions.