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McKinsey on Semiconductors
Autumn 2019

McKinsey on Semiconductors, Issue 7

Our world is being transformed by the growth of artificial intelligence, machine learning, and other new technologies. Although semiconductor companies are well positioned to capture value from these innovations, they also face challenges, including rising costs, increased competition, and inefficient supply chains. This issue of McKinsey on Semiconductors will help them navigate the road ahead.

ARTICLES IN THIS ISSUE

Article

What’s next for semiconductor profits and value creation?
– Semiconductor profits have been strong over the past few years. Could recent changes within the industry stall their progress?
Article

Artificial-intelligence hardware: New opportunities for semiconductor companies
– Artificial intelligence is opening the best opportunities for semiconductor companies in decades. How can they capture this value?
Article

Blockchain 2.0: What’s in store for the two ends—semiconductors (suppliers) and industrials (consumers)?
– Ten years after blockchain’s inception, it is presenting new opportunities for both suppliers, such as semiconductor companies, and consumers, such as industrials.
Article

Rethinking car software and electronics architecture
– As the car continues its transition from a hardware-driven machine to a software-driven electronics device, the auto industry’s competitive rules are being rewritten.
Article

How will changes in the automotive-component market affect semiconductor companies?
– The rise of domain control units (DCUs) will open new opportunities for semiconductor companies.
Article

Right product, right time, right location: Quantifying the semiconductor supply chain
– Problems along the semiconductor supply chain are difficult to diagnose. A new metric can help companies pinpoint performance issues.
Article

Reducing indirect labor costs at semiconductor companies
– Digital tools could bring new productivity and efficiency gains to indirect functions. Why do semiconductor companies hesitate to use them?
Article

Taking the next leap forward in semiconductor yield improvement
– By prioritizing improvements in end-to-end yield, semiconductor companies can better manage cost pressures and sustain higher profitability. The path forward involves a shift in mind-sets as well as deployment of advanced-analytics solutions.

PREVIOUS ISSUE

Issue

McKinsey on Semiconductors, Issue 6
It’s a time of change for the semiconductor industry. Will companies capture emerging opportunities and manage disruptions in traditional markets like automotive? Can they use advanced analytics or new approaches to manufacturing to remain competitive as margin pressures increase? The articles in this issue directly address these questions and more.