1. The document discusses trends in the semiconductor industry including high historical growth rates, increasing technological innovation, and need for capital to support growth and innovation.
2. It notes mixed current market conditions due to fragile global economy but growth potential in automotive and industrial markets, especially in emerging economies.
3. Key drivers are seen as data processing, communications, and consumer electronics applications as well as China increasing its semiconductor market share.
3. ¡ Current market conditions and outlooks are mixed for the next few years, largely
because of the fragile global economic outlook
¡ The automotive and industrial markets for semiconductors offer significant
growth potential
§ The automotive market will be driven by the number of vehicles produced in Brazil, Russia,
India and China, and by an increase in the average semiconductor content per vehicle
§ The industrial sector is growing because of increasing energy demands, a continuing trend
toward renewable energies and the expansion of high-speed rail transportation
¡ Market Drivers
§ Data Processing application market à Tablet
§ Communications market à Smartphone
§ Consumer Electronics à Digital Set-Top-Boxes
¡ China will cement its dominant position and increase its market share of global
semiconductor sales to half of the worldwide market by 2015
¡ To meet global demands, global production capacity for semiconductors will
increase
¡ Overall production capacity is sustaining progress toward smaller feature sizes
and larger wafer diameters
¡ Operating profitability is back on the positive side of the ledger, except in the
memory and back-end processes subsectors, which face strong competition and
cycles of overcapacity
¡ Working capital is back to normal levels
5. ¡ PC Market is expected to stabilize in 2017 (Driver: Windows
10 replacement)
¡ Premium smartphone growth will pick marginally in 2017
(Driver: iPhone8)
¡ Tablet declines has still not hit bottom
¡ By 2020, zero-touch UIs will be available on 2 billion devices
and end points
¡ By 2019, 20% of users interactions with smartphone will be
via virtual personal assistants
¡ By 2020, 50% of employees who are working alone or are
operating vehicles/heavy equipment will be monitored by
biometric assisted technology
¡ By 2019, 99% of multinational corporation will sponsor the
user of wearable fitness tracking devices to improve
corporate performance
13. 1. Smart Manufacturing will narrow the gap for small -medium-sized
manufacturers
2. Smart Cities will become a priority for the developed world
3. Big Data Analytics will merge with the IoT
4. Industry will buy-in to the cost-effectiveness of the IoT
5. Network security will become a priority for IoT
6. Over the next 12 months emerging technology will drive enhanced
security rollouts
§ To further optimize processes and shorten response times, IT decision makers
will need to explore ways to host applications at the device/sensor level (i.e.,
the Edge or Fog Computing)
7. App development programs for Industrial Internet of Things (IIoT) will
outgrow/outpace consumer IoT app development by 2020
8. IoT talent recruitment challenges will incentivize private enterprises to
fund secondary education programs to nurture next-gen digital-
workforce
9. Millions of smart IoT devices will be deployed into networks that use the
802.11 ah (HaLow) protocol by December 2017, driving it towards the
standard for IIoT.
10. A public utility will close its doors in 2017
17. ¡ Does Technology adoption reduce profitability
§ NO - technology has generated an additional surplus even in the “high-
friction” Indian context
¡ Why are internet companies unprofitable?
1. Discounting as a strategy to change customer behavior (from offline to
online purchase)
2. Investing in systems and processes that are profitable only at scale (e.g.
delivery and payments infrastructure)
3. Intense competition to secure market share in a very attractive market
¡ Where are the high-margin startups?
§ Pockets of high profitability can be found in markets that require a
combination of technology, local market understanding and execution
intensity that deters hyper-competition
¡ How do I find these mythical beasts?
1. Solves an India-specific problem
2. Leverages India’s cost advantage
3. Leverages 3rd party infrastructure
4. Is disproportionately valued by a niche
19. 1. Street light monitor
2. IoT solution for printing press
3. Power distribution system for continuous
process machines
4. Smart junction box with digital+analog
datacard
5. Transforming monitoring
6. Low current transformer resistor testing
7. Smart solar panel where we can do real time
monitoring of power
20. 1. Is it a vitamin tablet or an aspirin?
2. How big is the idea?
3. Do you have a mix of engineering, finance and sales/marketing experts
in your founding team?
4. How much do you need to sell to be recover your cost and be
profitable?
5. Is it for market today or tomorrow?
6. Have you validated your business model from experts?
7. Is your solution/product adoption easy?
8. Do you need expert team to maintain the solution/product?
9. Does it your product/solution has a shelf life ? Drivers: Technology,
Market, Competition, Regulations etc.
10. Have you clearly explained RoI for the buyer?
11. Do you have complete understanding and control on ecosystem on
which your product/solution is built?
12. Have you studied how Productivity/Efficiency save Impacts Cost,
People and Process?
13. Are you ready with n+1 version when you are releasing n version?
Can you hold on till the industry matures and start accepting your solutions ?
21. All pictures are from flickr.
with either no copyright or
common creatives