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The Semiconductor Industry Must Fully Transition to System-On-Chip

New Semico Report Series Offers Data and Perspectives to Help Make the Transition

Phoenix, Arizona April 2, 2009 - Semico Research, in conjunction with Advance Tech Marketing, announced today a new series of reports that offers unique information, market data, and insights as the semiconductor industry continues to transition to System-on-Chip (SoC) style methodologies for chip development.

Semico predicts that the market for SoC’s will surpass $45 Billion by 2013, a compounded annual growth rate of 9%. This growth is being driven by increasing usage within consumer products, such as cell phones, digital televisions, and networking equipment. While the market is growing, the chip price-performance requirements for these consumer products are creating significant business and technical challenges for semiconductor companies. The economic downturn has accelerated the need for the industry to complete this transition.

“In order to build a profitable business model using SoC style development, semiconductor companies have to first make the culture transition from niche supplier of certain pieces of the system, to the system integrator that supplies the entire system. The issue facing the industry is that its infrastructure, and some its major players, have still not made enough of the transition,” says Phil Casini, managing director, Advance Tech Marketing. “However, today’s reality is that the consumer OEM’s now control the growth direction of the semiconductor industry, and they have made the transition. Prolonging the inevitable then only continues to erode the industry’s health”.

Semico’s new four part series of reports entitled System(s)-On-Chip, A Market Perspective offers new information and industry expert perspectives about these challenges and how to address them.
• Part One of the series provides an in depth analysis of the market forces driving SoC growth, detailed charts that quantify the impact SoCs are having on the industry, and the new industry dynamics SoCs create.
• Part Two provides a unique perspective of how the new SoC design challenges have evolved as SoC complexity continues to rise, and how computing architecture models struggle to deliver valued price-performance, eroding the traditional semiconductor business models.
• Part Three compliments Part Two by discussing the practical alternatives available to address the challenges when making the transition to SoC methodology, and their relative merits and the impact on the company.
• Part Four provides unique quantitative and qualitative economic analysis that results from SoC methodologies, including examples of how companies can realize revenue, profits, and manage risk exposures when transitioning to SoC development.

"On the surface, making the transition to SoC development may appear to be just a subtlety, but this transition is actually very difficult because it affects every aspect of how companies operate," says Rich Wawrzyniak, senior analyst, Semico Research. "This series of reports has the information and perspectives companies need to help bring clarity to the challenges and provide potential resolutions. Companies can use these reports as a blueprint to set the right course for their own success."

Semico is offering each of the individual reports for the introductory price of $995. A master report containing all four parts plus the Executive Summary is available for $3,500. For more information or a Table of Contents of the System(s)-On-Chip, A Market Perspective reports contact Susan Cadel at 607-368-7600 or susanc@semico.com.

About Semico
Technology manufacturers, vendors, service providers, technology professionals and market specialists, worldwide, utilize Semico’s experienced staff and in-depth research to support critical business, product and technology decisions. Semico’s vision is derived from both a deep technology understanding and comprehensive research, which examines each segment of the supply chain for each market. Regular and ongoing end-user demand and primary research surveys are the foundation of the analysis, enabling Semico to provide insightful market analysis and guidance on future market opportunities.

Semico is a strategic partner with leading technology companies, with access to an extensive worldwide electronic network, technology databases and expert personnel. Semico was founded in 1994 by a group of semiconductor industry experts and has offices in Phoenix, California, New York, Japan and Taiwan.

About Advance Tech Marketing
Advance Tech Marketing (http://www.advancetechmarketing.com) helps product or service companies streamline their development and marketing processes to save money and grow revenue. ATM’s series of affordable training classes and consulting services help companies improve 1) their information flow for better quality deliverables, 2) the communications between the process stake holders to lower development costs, and 3) the empowerment of decision makers for a better mix of deliverables and higher revenue.

For more information, please contact Susan Cadel at (607) 368-7600 or susanc@semico.com.

Semico Research Corp.
www.semico.com

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