Overview of the integrated circuit manufacturing space
An integrated circuit, or IC, is a semiconductor wafer with millions of capacitors, resistors, and transistors fabricated on them. It finds usage as an oscillator, amplifier, counter, timer, and microprocessor. Also, depending on the intended application an integrated circuit can be classified as an analog integrated circuit or digital integrated circuit.
Globally the integrated circuit industry is expected to witness accelerated growth in the coming years owing to the rise in the use of the analog IC’s in various end-use verticals such as consumer electronic devices, automotive utilities, LED lighting, healthcare devices, and driver assistance systems. Other factors such as technological proliferation in consumer electronics devices and the high penetration of smartphones, tablets, and feature phones have augmented the demand for such integrated circuit components.
The Business Challenge and Journey
The client, a leading player in the ICT industry, was looking at leveraging SpendEdge’s supply chain risk analysis solution to identify and prevent the losses occurring due to the risks in their supply chain. The client was facing several issues related to their inefficient supply chain strategies. The company’s supply chain management executives recognized the tremendous benefits of implementing a supply chain risk analysis study. As such, they were looking at reducing the company’s risk profile by improving the efficiency of their overall supply chain operations.
To identify challenges in the supply chain functions, the supply chain risk analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the ICT industry. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.
Why should you leverage supply chain risk analysis?
Implementing an effective supply chain risk assessment can help break down organizational silos. It also guides the management to develop a more strategic path to prevent disruption and avoid risks.
The assessment process affects nearly every aspect of an organization including product development, R&D, demand and supply planning, manufacturing, delivery of goods and customer returns. Moreover, the dynamic nature of supply chains across industries has made supply chain risk analysis an essential component of enterprise risk management.
Fundamental questions answered in this supply chain risk analysis study include:
SpendEdge’s supply chain risk analysis solution offered relevant insights that helped the integrated circuit manufacturer to develop a robust risk management strategy.
Our solution also enabled the client to identify, adapt, and implement the best practices that produced the best performance results in the integrated circuit manufacturing sector. Moreover, the supply chain analysis solution enabled the client to achieve breakthrough improvements in their overall supply chain performance. Furthermore, it offered relevant insights to better understand the market scenario, supplier negotiation strategies, industry standards, and expectations.
Integrated circuit market drivers:
- Automotive electronics– The growing popularity of in-vehicle infotainment, assisted and autonomous driving features, and connectivity are expected to fuel the demand for automotive integrated circuit. Devices such as analog devices, mixed-signal devices, and MCUs will continue to represent the major share of automotive IC sales.
- Smartphones and personal computing systems– Smartphones are the fastest-growing segment of the cellphone market. Also, the demand for 4G and 5G devices with virtual reality features will impact the sales of analog, digital signal processing devices, NAND flash memory, and logic integrated circuit devices.
- Wearable electronic devices– The increased use of semiconductors in wearable electronic devices such as health monitors and fitness trackers are significant contributors impacting the growth of the integrated circuit market.
The emergence of advanced fabrication and new product development techniques that decrease the costs per unit of the component while increasing their functionality are expected to drive the growth of integrated circuit market over the next decade. Also, the dynamic nature of this sector has further shortened the product life cycles; thereby, enhancing demand across industries.