5G is ready for its closeup
Companies and consumers alike are eagerly anticipating what this new cellular network technology will make possible—so much so that 5G adoption is widely expected to outpace 4G’s when it was introduced.
For semiconductor companies, 5G offers plenty of potential. Speed is one factor, but reliability and low latency are the biggest benefits, unlocking vast new applications and use cases. But tapping into this potential require new monetization models as well as a new organization structure and different routes to market to reach customer bases they’ve never engaged with before.
Unlocking new use cases with 5G
Mission-critical applications simply can’t trust the current network. But with 5G’s extreme reliability and ultra-low latency, those concerns largely disappear—making possible all sorts of industry use cases that couldn’t operate before.
Riding the 5G waves to success
For semiconductor companies, the expected two-stage adoption means two distinct go-to-market strategies and plans will be needed to more fully capitalize on 5G’s potential.
Going beyond silicon as a service
Semiconductor companies need to begin working now to identify new ways to present their products and technology to customers, and new ways to monetize them, to create new value streams across different adoption timeframes.
This could include offering silicon as a service, which innovative semiconductors are already doing. But several other potentially promising models are possible.
Building a new approach for 5G
With such an extensive and diverse customer base for 5G, the traditional go-to-market model for chips just won’t work. Instead, semiconductor companies have to think about expanding their scale via a collaborative partner ecosystem.
This creates a prime opportunity for semiconductor companies: to think boldly beyond simply selling chips; to reimagine their revenue streams; and to approach old and the vast number of new customers with new business models.