The last year has been perhaps the most tumultuous one in the history of the semiconductor industry. Most semiconductor companies are grappling with significantly reduced demand, resulting in the need to realign, and even redefine, their businesses. To navigate through these challenging times, it is becoming increasingly important for semiconductor companies to focus on three key areas: strategy, cost competitiveness and communication.

With the steep declines in growth and profitability in the past year, many semi suppliers are looking to channel their resources toward a few clear, long-term strategic initiatives, aligning their resources behind those core capabilities.

As semiconductor companies fine-tune their strategies, they are also striving for cost competitiveness, both through improvements in their own cost structure and by providing more cost-effective solutions to their customers. One of the biggest differentiators in this industry going forward will be the ability to provide customers with solutions that cost-effectively maximize the performance of current equipment, while providing a migration path to next-generation technologies.

Now is also the time when companies will benefit from keeping all their lines of communication open-to customers, to stockholders and to employees. Companies should take this opportunity to talk and visit more often with customers and strengthen long-term relationships. Customers who understand a company's strategy and its road map, and how it will support their needs, are more likely to be supportive in the short and the long term.

Particularly critical in today's environment is the need to communicate clearly with stockholders. It is imperative that companies disclose their financial results accurately and candidly in order to maintain investor trust and confidence.

Equally important is frequent communication with employees. As this prolonged downturn continues, employees are struggling to understand the impact of market conditions on their company and their futures. They are looking to the leaders of their businesses to articulate a clear plan that will position their company for growth. Companies can move forward successfully only when every employee is aligned behind the common goals and objectives of the business.

If companies can execute quickly and decisively on these three initiatives-sharpening strategic focus, improving cost competitiveness and increasing communication-they will not only be able to weather the current storm, but also achieve long-term success.