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Semis Feel R&D Squeeze

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KurtShuler
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Re: Major systems companies/OEMs are taking over R&D
KurtShuler   3/24/2014 4:36:14 PM
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Fabless semi companies have traditionally had trouble creating "complete products" and selling them to a "market". I think it's because many of the fabless semis started out as custom ASIC houses, designing a chip based on a specification written by a single customer.

So, the DNA of a service provider or OEM is different than the DNA of a traditional fabless semi. The conundrum is that successful fabless semis will have to focus on creating "complete products" (including software, integration services, etc.) for narrow target market segments where the semi has established unique knowledge. A fabless semi that concentrates on no market segment and participates in all markets no longer has a competitive advantage. Anyone can design a chip with today's technology, tools, and value chain.

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