RESEARCH REPORT

In brief

In brief

  • Digital transformation impacts industries across the board, creating a world of renewed expectations.
  • As semiconductor companies leverage digital technologies to generate value, there is a need for leaders to strategize to set themselves apart.
  • In the post-digital era, companies can shape their businesses and differentiate with five emerging technology trends.


The duality of technology

New technologies impact industries across the board. For the semiconductor industry, the very technologies that disrupt the way companies operate are the same technologies that will be leveraged to create new products and businesses.

It’s time for semiconductor companies to take a strong stand and proactively define the next generation of technology—in a dual role, as customer and producer.

Five trends shape the near future:

Trend 1: DARQ power

Understanding the DNA of DARQ

DARQ technologies will not only change the semiconductor industry, they will also drive business growth. Blockchain/Distributed Ledger Technology will drive improvements via data provenance and faster traceability as well as enablement of compute and Artifical Intelligence(AI) capabilities. AI and extended reality will require custom chips, and quantum computing will bring about a new world of compute engineering.

87%

of semiconductor executives are already experimenting with DARQ technologies.

63%

of semiconductor executives consider that AI will have the greatest impact on their organization over the next three years.

60%

of semiconductor companies anticipate DARQ technologies will transform their organization over the next three years.

Semiconductor industry leads in artificial intelligence adoption. 80% of semiconductor executives are currently using and piloting AI within their business—the highest among 20 industries surveyed.

Trend 2: Get to know me

Unlock unique consumers and opportunities

Digital demographics are important in every industry, but particularly so in the semiconductor industry. As silicon technology becomes commoditized—semiconductor companies are looking for ways to differentiate. As chips become more specific in nature for targeted applications, semiconductor companies will have to know their customers inside and out—predicting and anticipating needs before they even occur.

94%

of semiconductor IT and business executives believe digital demographics give their organization a new way to identify market opportunities.

81%

of semiconductor executives report that customer digital demographics is expanding the number of ways they deliver products and services either significantly or extensively.

71%

of semiconductor executives expect the amount of data their organization manages about customers’ digital demographics to increase exponentially or significantly over the next two years.

Trend 3: Human+ Worker

Change the workplace or hinder the workforce

Even as the workforce evolves at a rapid pace, most semiconductor companies are optimized for the workforce of the past. Hiring and reskilling talent with the right knowledge and capabilities is essential to competitiveness. Over the next three years, 60 percent of semiconductor companies would have moved 41 percent or more of their workforce into new roles requiring substantial reskilling.

71%

of semiconductor executives agree their employees are more digitally mature than their organization, “waiting” for the organization to catch up.

78%

of semiconductor executives believe that increased employee velocity has increased the need for reskilling in their organization.

Trend 4: Secure us to secure me

Enterprises aren’t victims, they’re vectors

Ecosystem-driven business connections may increase companies’ exposure to risks. Semiconductor companies are as vulnerable as the weakest link in their ecosystem. Hence large semiconductor companies are working to embed security into their chips and ecosystems, knowing they are a critical link to national security as well as that of private citizens.

23%

of semiconductor companies report that they know their ecosystem partners are working to be compliant and resilient.

92%

of semiconductor companies consider security posture in the ecosystem partners extremely important.

Trend 5: My markets

Meet consumers’ and organizations’ needs at the speed of now

Technology is creating a world of intensely customized and on-demand experiences. Companies are using custom chips, chiplets and 5G to optimize and differentiate. While there will still be a market for off-the-shelf semiconductors, customized semiconductors will see higher growth.

90%

of semiconductor companies see the integration of customization and real-time delivery as the next big wave of competitive advantage.

54%

of semiconductor companies have equal priority between customization and on-demand approach to delivering their products and services.

The rise of 5G brings huge opportunity to semiconductor companies. The market will grow by almost 50% over a six-year period.

Don’t duel with duality

Leading semiconductor industry players are already meeting the duality of being a customer and producer of technology head on, putting themselves in a good post position for the next wave of change.



About the Authors

Syed Alam

Lead – Semiconductor Industry, Global


Timothy Chu

Senior Manager – Accenture Strategy


Agneta Björnsjö

Lead – Accenture Research, Communications, Media & Technology, Global​


Sohini Kar

Associate Manager – Accenture Research Communications, Media & Technology

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