User benefits and business opportunities arising from IoT seem boundless. Yet there are many issues which need digesting. Though most talk about security, a far larger and more present issue is the massive transformation of the semi-conductor industry.
One issue creeping up is the disruption caused by broadener incumbent players offering full reference designs who while serving the industry inadvertently accelerating the arrival of the changes. The semiconductor industry is continually hungry to devour more product functions, and performance requirements as technology nodes improve performance and cost.
We have seen cases where companies have been buying out their customers with value addition shifting from the equipment manufacturer to the chip supplier. When Softbank buys ARM, Avnet buys Hacktser, Amazon buys Annapurna, one starts to wonder what is happening and what will be the pecking order of value chain. We have seen the EMS (electronic manufacturing services) companies take over the process from prototype to manufacturing to shipping. Likewise, the process of ideation, design, prototyping is seemingly on the same path by-passing the traditional “design-in” performed by the chip manufacturer . At least that seems to be objective of the alternative players.
Interesting changes ahead…..again