Differentiation for semiconductor companies
Increasingly, the big winners in electronics are the systems companies that can claim consumer-level differentiation. Apple, for example, has been able to preserve margins and to maintain a powerful corporate brand and consumer loyalty even in the current difficult economic times. At the same time, many of their semiconductor suppliers have struggled to differentiate and to retain a position of value in the ecosystem.
This is a result to some extent of the challenging competitive environment, but it also arises from the high level of standardization in (especially consumer) electronics. DDR memory; ARM cores, USB, 802.11. All these standards mean that a systems company has greater choice, and an easier time switching out one semiconductor vendor for another.
Yet there are ways to strengthen your differentiation as a semiconductor company. Solution-level strategies, the use of proprietary IP, and service-level agreements are just a few of the techniques that can be employed.
If you would like to learn more about how your company can increase its differentiation in a tough market, contact us at info@srbcnetworks.com.
Leave a Reply