Exclusive extracts from this 68-page-long report:
- Who are the key players?
Leading chipmakers are mostly fabless, i.e. they outsource the manufacture of silicon wafers, and a growing number of them are seeking to externalise other low added-value activities of the production process such as testing and packaging. Market leaders are therefore overall becoming leaner and asset-lighter, focusing on higher value-added operations such as R&D, supply-chain management and sales. A third type of companies, focused on intellectual property (e.g. ARM), exclusively specialises in designing semiconductors and licensing intellectual property to other chip manufacturing companies. [...]
Groups analysed in this report include: Intel, Samsung, TSMC, Qualcomm, SK Hynix, Toshiba Electronic Devices & Components, Broadcom, Micron Technology, MediaTek and Infineon.
- What are the players' strategies?
With PC sales pursuing their structural decline, chipmakers are increasingly focusing on faster-growing segments such as mobile and smart devices, servers and data centres, the Internet of Things (IoT), AI, or self-driving car technologies. Samsung in this regard has been adding new chip technologies to its production line to maintain its manufacturing leadership and cater to a growing range of devices; meanwhile, Intel aims to transform itself from a PC-centric to a data-centric business model to tap the vast opportunities in cloud computing. More generally, the market is ripe for consolidation as leading players are seeking to expand or enhance their position in an increasingly competitive market. […]
- What are the players' key growth and profitability drivers?
Highlighting new growth segments' significant contribution to growth and profits, Intel's recent growth was primarily driven by its data-centric business, whereas Infineon's 16% average annual growth over the past five years was fuelled by strong demand for semiconductors used in automotive, industrial and power supply applications. Like Micron and TSMC, leading players also saw their profits increase thanks to greater cost discipline, manufacturing cost reductions or more favourable pricing conditions. [...]