See also: International Electronics Forum 2009 - News Roundup
The stakes of the chip industry have never been higher, Hossein Yassaie, CEO of semiconductor IP specialist Imagination Technologies, told the International Electronics Forum 2009 in Geneva this morning.
"I've never seen the stakes this high in the industry", said Yassaie, "you either win big or you lose big. The Internet acts as an amplifier making your success bigger or your failure worse."
"The mobile world order is changing big-time", said Yassaie, "digital radio has gone global; gaming has found new growth in mobile; video is everywhere with YouTube etc; location-based applications and interactive 3D maps are making life easier and more fun."
See also: Q5 Interview - Hossein Yassaie, Imagination Technologies
The combined effects of the Internet and the power of consumer electronics have changed the semiconductor industry radically, she argued.
"Consumers want everything, effortlessly, and this is what drives our business", said Yassaie.
Imagination has had network operators approaching the company about making SOCs. "Operators wanting to get into SOC designs is quite amazing", said Yassaie.
However he hinted at the operators' possible motivation by instancing the Apple Apps store.
"If you can deliver content directly to the consumer, you can create consumer 'stickiness'", said Yassaie.
Apple, of course, is a shareholder in Imagination as are other OEMs which have not been disclosed.
See also: Apple ups stakes in Imagination battle with Intel
Connectivity and graphics are key competences for the chip industry. "In a few years' time it will be difficult to sell a product without fantastic cool graphics", said Yassaie.
As to connectivity, he added: It's astonishing that a semiconductor company should have a separate connectivity division. Everything should be connected. Connectivity should be in every device. Connecting chips to clouds is a hot area to be in."
Another big change on the way is new platforms and form-factors for end-products. "The PC platform has been the only universal platform, but that is changing", said Yassaie, "people are trying to establish that kind of platform in other channels - some with software, like Google's Android; some with hardware, like Apple."
Clearly low-power is a massive key competence in this new world order, but not many companies can do it.
"SOCs must be designed from the bottom up for power management", said Yassaie, "taking a PC GPU and trying to make it low-power doesn't work."
Yassaie pointed out that: Most key SOC functions are now available as proven IP. Mature IP equals low development costs. SOC IP allows small companies to do big things."
This mix allows tremendous opportunities for new companies to get into the industry. "There are huge opportunities for start-ups", said Yassaie, " SOC IP + domain expertise = the next round of successful semiconductor start-ups."
See also: Mannerisms, the blog of David Manners. Updated twice daily, it's the distinctive, entertaining, authoritative and never dull commentary on the semiconductor industry, from someone who knows. Sign up for the Mannerisms eNewsletter.