Breaking News
Comments
Oldest First | Newest First | Threaded View
Page 1 / 3   >   >>
rick merritt
User Rank
Author
Seed corn in jeopardy?
rick merritt   3/21/2014 1:43:26 PM
NO RATINGS
Anyone else seeing this trend?

resistion
User Rank
Author
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.

docdivakar
User Rank
Author
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

docdivakar
User Rank
Author
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

lidation
User Rank
Author
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.

LarryM99
User Rank
Author
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?

krisi
User Rank
Author
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?

lidation
User Rank
Author
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.

Scott Elder
User Rank
Author
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.

krisi
User Rank
Author
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

Page 1 / 3   >   >>


Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
Most Recent Comments
Like Us on Facebook
Special Video Section
5G LTE is on the way. These systems will require more ...
Protecting sensitive electronic circuitry from voltage ...
09:45
Watch as a web server authenticates or rejects a water ...
Protecting sensitive electronic circuitry from voltage ...
Watch as a web server authenticates or rejects a water ...
Protecting sensitive electronic circuitry from voltage ...
Power can be a gating factor in success or failure of ...
Get to market faster and connect your next product to the ...
00:44
See how microQSFP is setting a new standard for tomorrow’s ...
The LTC3649 step-down regulator combines key features of a ...
Once the base layer of a design has been taped out, making ...
In this short video we show an LED light demo to ...
The LTC2380-24 is a versatile 24-bit SAR ADC that combines ...
In this short video we show an LED light demo to ...
02:46
Wireless Power enables applications where it is difficult ...
07:41
LEDs are being used in current luxury model automotive ...
With design sizes expected to increase by 5X through 2020, ...
01:48
Linear Technology’s LT8330 and LT8331, two Low Quiescent ...
The quality and reliability of Mill-Max's two-piece ...