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Industries and companies worldwide are focused on creating value, without which it is not possible to survive the customer-driven market. The semiconductor industry is no different and has consistently added value over the last four decades.
The value created by the semiconductor industry has enabled different other connected industries. It is evident based on the fact that semiconductor-focused solutions have become critical pillars for businesses that need innovative semiconductor-powered products.
Value Flow: Solutions and products that take the semiconductor and other connected industries forward.
To generate value consistently requires executing flawless strategy, which the semiconductor industry (mainly companies focused on product development) has carried out for decades. This value generation ranges from technology node, equipment, process development, package technology, raw material improvement, etc. There have been examples where such plans have failed, but the number of successful value creation-focused is considerably high.
Segment: Creating segments that add value to the industry is the first step toward developing vital semiconductor value flow.
Planning: Planning focuses on ensuring the development of segments leads to high-value creation, which demands consistent innovation.
Creating value that drives the industry forward demands long terms focus and planning. It starts with focusing on segments that can add value. It can be new equipment, FABs to OSATs capacity building, new semiconductor devices, and several other sub semiconductor chain-focused segments. Along with a clear segment definition, robust planning is a must-have.
Creating segments and planning a long-term roadmap is a must-have for value flow. The other two parts of value flow creation are investment and learning.
The investment focuses on building the capital and human resource to drive the segments that will bring the needed value to the semiconductor industry. And learning focuses on course correction required to ensure the value flow of new or existing domains does not go off track.
Investment: Focuses on enabling required resources and teams that can constantly innovate the value flow.
Learning: Capturing errors and failures to make necessary course correction is vital to creating a robust value flow.
Value flow has become an integral part of the semiconductor industry. Mainly due to the growing dependency on semiconductor products. Such a dependency demands highly focused value flow management. If not done correctly, it can often lead to situations similar to semiconductor shortages.
The semiconductor industry is bound to grow in the coming decades. It is valid both from market size and numerous products that will get manufactured. Value flow needs to be more robust to achieve these goals, and the semiconductor industry thus will have to keep finding new avenues to make the new and existing value flow more resilient and innovative.
