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Going vertical: A new era in integration

June 14, 2021


In brief

Integration in the semiconductor industry

Strategic options for semiconductor companies

Semiconductor companies must now get creative to maintain their growth trajectory or risk becoming commoditized by their customers.

Moving forward: what semiconductor companies must consider today

Invest in ecosystem to understand the customer

Semiconductor companies have traditionally been B2B businesses and somewhat abstracted from the end-customer.

Invest in right-skilling engineering workforces

Semiconductor companies need a workforce trained in software engineering, AI, big data techniques in addition to core engineering skills.

Free up capital for reinvestment

Business models are evolving from solely relying on chip sales to providing an variety of products and services that can uncover fresh revenue streams.

Major trends driving vertical integration

Explosion of data and the dawn of edge

Data storage and processing at the edge required the co-optimization of data center and edge hardware, middleware, and application software.


5G created completely new use cases for consuming data and insights.


The rise in autonomous cars and electric vehicles has been one of the primary drivers for the growth of the semiconductor industry.

Artificial intelligence and machine learning

Led to a surge in demand for highly specialized accelerators.

About the Authors

Deborah Garand

Managing Director – Strategy and Consulting, High Tech

Timothy Chu

Managing Director – Strategy & Consulting, Semiconductor


Manager – Accenture Strategy

Aishwarya Saluja

Senior Analyst – Strategy and Consulting

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