Processor Watch

December 6, 2004

Editor: Tom R. Halfhill

In this issue:

Viewpoint: Birth of the Chipware Semiconductor Company
Frank Dickson -    {12/06/2004}

In 1995, I opened In-Stat’s Semiconductor Outlook Summit in San Jose. One theme of the presentation focused on a paradigm shift in the semiconductor industry. If you are like me, your skin begins to crawl when you hear the phrase “paradigm shift.” It is often used prematurely, developed illogically, or employed to describe an occurrence that is minor in stature. However, the paradigm shift in 1995 was real: the growth of the fabless/foundry model. This was a trend that began before 1995 and was a gradual, but still revolutionary, shift in the manner in which chips are brought to market.

Another trend is beginning to reveal itself: the emergence of a new class of chips and a related new player in the semiconductor value chain. The emerging product category will be what I call a purpose-focused specific product (PFSP). It’s a type of system-on-chip device for a specific purpose—such as entertainment or communications—that provides most of the functions and interfaces needed to support that purpose in a single chip that can be used in many different applications within that focus.

The second part of this trend is the emergence of what I call the chipware semiconductor company. Innovative companies will recognize market opportunities and take advantage of them by customizing PFSPs, ASSPs, and microcontrollers (MCU) with software. Chipware semiconductor companies will specialize in areas such as custom algorithms, peripherals to extend MCUs into new markets, and software to emulate operations that today would be done in hardware.

The new trend toward PFSPs and chipware semiconductor companies will be driven by cost. And the result will be “chip” companies forced to use standardized silicon and to differentiate their offerings in software.

Microprocessor Report readers can access the full story (2+ pages) here: www.mdronline.com/mpr/h/2004/1206/184901.html. To find out more about Microprocessor Report, please visit: www.mdronline.com.

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