Breaking News
Comments
Newest First | Oldest First | Threaded View
<<   <   Page 2 / 3   >   >>
rick merritt
User Rank
Author
Re: Seed corn in jeopardy?
rick merritt   3/22/2014 10:52:55 AM
NO RATINGS
@Scott Elder: From what I see, TI has not reduced R&D so mich as maintained it at a current level while it increases the amount of its profits its returns to shareholders. It says it is gaining share in its corre target market of analog with a flat spend on R&D y-o-y.

krisi
User Rank
CEO
Re: Seed corn in jeopardy?
krisi   3/22/2014 10:28:33 AM
I see your point @lidation...all manufacturing even for highly complex silicon chips is moving to Asia...and apparently many people in US are fine with this, I read this article in Bloomberg that this is a natural evolution like agriculture going away many years back...but I just have difficulty imaging this service society where you don't produce anything...your suppliers can squizze you anytime they want in such a situation but not seliing you chips or increasing prices 10 times...what are we going to do then? Kris

Scott Elder
User Rank
Manager
Re: Seed corn in jeopardy?
Scott Elder   3/22/2014 2:19:44 AM
NO RATINGS
This is just a "wild guess", but something tells me TI has reduced R&D because they expect revenue to continue falling such that R&D as a percentage of sales is soon back in the mid to high teens.

lidation
User Rank
Freelancer
Re: Seed corn in jeopardy?
lidation   3/21/2014 7:19:38 PM
NO RATINGS
@krisi, I was being a bit sarcastic. I am truly aware of the strategic aspect of the silicon industry to our national security. However, sadly, what is happening is happening. I am with one of the major semiconductor manufacturing equipment companies. Most of our business are in Asia since nearly a decade ago because the manufacturing happens there.

We like it or not, the Wall Street folks don't care. Money talks - unless the government steps in.

krisi
User Rank
CEO
Re: Seed corn in jeopardy?
krisi   3/21/2014 6:30:01 PM
NO RATINGS
Interesting thought @lidation but I don't agree, silicon is strategic...I am sure Asia wil happily take over semi business and start selling us chips in increasing quantities...and we should move on to what? social networking? financial services? artificial intelligence?

LarryM99
User Rank
CEO
Re: Seed corn in jeopardy?
LarryM99   3/21/2014 6:07:02 PM
This behavior is typical when Management considers the business to be in the "cash cow" stage, meaning that it is a mature company with chances for innovation and differentiation largely behind it. This fits with an industry where generational improvements are increasingly expensive and the return on them are smaller.

From a business point of view the logic of this is defendable. The chip industry has defined innovation as smaller geometries and faster operation. Lately this has been modified to include lower power, but it is still a pretty narrow range of innovation. When is the last time that there was a fundamental breakthrough in semiconductors? What are the chances of that happening in the future?

lidation
User Rank
Freelancer
Re: Seed corn in jeopardy?
lidation   3/21/2014 5:17:52 PM
NO RATINGS
It's perfect timing for our rivals to catch up upon us. But so be it. The US should always focus on the top profit margin stuffs. As for the semi, whose profit margins are dropping year by year, let the Asians do it.

docdivakar
User Rank
Manager
Re: Seed corn in jeopardy?
docdivakar   3/21/2014 2:30:32 PM
NO RATINGS
@Rick: seems to me that the next generation technologies like Compound Semi, Graphene(?), etc., will have a difficult time attracting investors who are in for the long term. Many of these newer technologies are where Silicon used to be three decades ago. I do know that the US Government has been funding some of these but there needs to be investments with a long term vision for these from the commercial sector.

MP Divakar

docdivakar
User Rank
Manager
Re: Seed corn in jeopardy?
docdivakar   3/21/2014 2:25:57 PM
NO RATINGS
@resistion: I agree... in the longer run this trend will kill the Golden Goose that is giving the short term gains in the first place! The Semi industry is in a quandary -no one seems to have a clear strategy that nourishes a healthy R&D in the long term while keeping the short term-minded shareholders happy! And I don't see how the companies can do this while the industry is deeply entrenched in a suicidal pricing model.

MP Divakar

resistion
User Rank
CEO
Re: Seed corn in jeopardy?
resistion   3/21/2014 1:51:55 PM
NO RATINGS
Eventually short-term returns are not possible without sustained R&D.

Eventually the second tier reaches 28 nm. If no one demands post-28 nm technology, because it's too expensive, certainly the habit of lowering costs will lead to the end of semiconductor technology leadership.

<<   <   Page 2 / 3   >   >>


Flash Poll
Top Comments of the Week
Like Us on Facebook
EE Times on Twitter
EE Times Twitter Feed

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EE Life
Frankenstein's Fix, Teardowns, Sideshows, Design Contests, Reader Content & More
Max Maxfield

Feast Your Orbs on My Jiggly Exercise Machine
Max Maxfield
52 comments
Last weekend, I was chatting with my mother on the phone. She's all excited that I'm coming over to visit for a week in November. "I'll be seeing you in only seven weeks," she trilled ...

Glen Chenier

Missing Datasheet Details Can Cause Problems
Glen Chenier
3 comments
It is often said that "the devil is in the details." All too often those details are hidden deep within a datasheet, where you can easily overlook them. When a datasheet reference circuit ...

David Blaza

RadioShack: The End Is Nigh!
David Blaza
123 comments
I'm feeling a little nostalgic today as I read about what looks like the imminent demise of RadioShack, at least as we currently know it. An old ubiquitous cartoon image popped into my ...

Larry Desjardin

Engineers Should Study Finance: 5 Reasons Why
Larry Desjardin
47 comments
I'm a big proponent of engineers learning financial basics. Why? Because engineers are making decisions all the time, in multiple ways. Having a good financial understanding guides these ...