Peer Group Best Practices Benchmarking: How it Helped a Semiconductor Devices Manufacturer to Gain an Independent Perspective of Their Performance
Overview of the semiconductor devices industry Semiconductor devices are electronic components developed based on the properties of semiconductor materials such as germanium, silicon, and gallium arsenide. Semiconductor devices are increasingly replacing vacuum tubes in several applications. Also, such devices make use of electronic conduction in the solid state as opposed to thermionic emission in a […]READ MORE >>
Overview of the semiconductor devices industry
Semiconductor devices are electronic components developed based on the properties of semiconductor materials such as germanium, silicon, and gallium arsenide. Semiconductor devices are increasingly replacing vacuum tubes in several applications. Also, such devices make use of electronic conduction in the solid state as opposed to thermionic emission in a high vacuum.
In the ICT industry, the semiconductor devices manufacturing segment is classified into:
- Complex SOC
- Commodity Integrated Circuit
Moreover, the demand for semiconductor devices continues to grow owing to the need for enhanced computing power across industries and other establishments. However, the fundamental assumptions of scaling according to Moore’s law play a significant role in device design and manufacturing investment leading to new architectures, materials, and approaches. As of late, the semiconductor devices industry has also consolidated significantly following the same path of past maturing industries. The result is a consolidated industry optimized for profitability and high efficiency to serve the evolving needs of the end-market segments.
The Business Challenge and Journey
The client, a leading player in the ICT industry, specializing in the manufacture of the semiconductor devices was looking at leveraging SpendEdge’s best practices benchmarking solution. The client wanted to gain comprehensive insights into the market trends to identify new development opportunities in the ICT industry and create a competitive environment within the organization.
The company’s supply chain management executives recognized the tremendous benefits of leveraging SpendEdge’s best practices benchmarking solution. As such, they were looking at gaining an independent perspective of their performance when compared with their competitors. Moreover, the client wanted to set standards for performance expectation and prioritize improvement opportunities.
To identify challenges in supply chain functions, the industry best practices benchmarking experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the semiconductor devices industry. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.
Fundamental questions answered in this best practices benchmarking study include:
SpendEdge’s best practices benchmarking solution offered relevant insights that helped the semiconductor devices manufacturing company in understanding the real opportunities and their priorities at different levels. Also, with the help of best practices benchmarking, the client was able to minimize resistance to change and garner support for action.
Why should you leverage best practices benchmarking?
Integrating industry best practices benchmarking into the organization will result in valuable data that encourages discussions and sparks new ideas. However, the approach to benchmarking can be as critical as the data. However, the most successful establishments prefer to incorporate benchmarking into the culture by engaging key decision makers and industry leaders throughout the process.
Semiconductor devices industry trends:
- Connected revolution- Semiconductors devices serve as the basis for enabling Internet of Things (IoT) technologies and related applications. The popularity of smart homes and devices have increased the demand for semiconductor To capitalize on this new market trend, leading players in the semiconductor devices sector are changing their sales, marketing, and product development approach to redefine go-to-market strategies.
- Increase in mergers and acquisitions- Owing to their slow growth in specific segments, leading semiconductor devices manufacturers are increasingly turning towards mergers and acquisitions to reduce revenue volatility through a diversified portfolio of products or solutions. Also, players in the semiconductor devices sector should consider developing an explicit M&A strategy to drive execution.
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