Semiconductor Industry Services

The semiconductor industry is accustomed to fast growth, albeit with peaks and valleys. At PwC, we stand beside our semiconductor clients as they weather the industry’s cycles, harnessing the deep experience of our semiconductor practice to assist them in tackling such challenges as:

Industry transition from 300 mm to 450 mm

The transition of semiconductor fabrication from 300 mm to 450 mm represents the biggest change and investment in the industry in a decade. This transition will require semiconductor equipment vendors to make significant changes to its business model, product development, supply chain, and services.

Lean supply chains

Increasingly complex and highly integrated product designs but declining prices and shortening lifecycles demand tightly integrated and lean supply chains. Companies however are not fully leveraging IT thus resulting in long cycle times and having excess and obsolete inventory.

R&D productivity

The trend towards highly integrated product designs results in semiconductor companies managing complex integrated system on a chip (SoC) developments. This complexity results in greater, un-forecasted resource consumption with increased project delays resulting in reduced profitability.

Markets and products strategy

Declining ASPs, despite ever improving capabilities dictated by Moore’s law has the Semiconductor industry constantly looking for new opportunities to grow. In this scenario, Semiconductor companies are constantly looking for M&A opportunities to continue growing profitably.

Conflict minerals

Dodd-Frank Section 1502 requirement of companies to determine and report whether their products are conflict minerals free is another operations challenge facing the industry currently.

 

     Semiconductor publications and white papers

Evolving landscape of technology deals: Semiconductor Industry Device deal trends

The recent explosion in M&A activity in the semiconductor industry follows a larger trend of increased deals in the overall Technology sector. Many of the factors affecting the overall Technology Sector such as maturing markets and associated revenue-ASP stresses have also come into play in the semiconductor sector. But a closer look shows that the specific M&A route chosen by the semiconductor companies involved in transactions varies based on three key factors: market segment focus, the growth rate of the market segment and the size of the company.

Pricing benchmark results

Semiconductor companies are faced with the challenge of developing an efficient pricing strategy. PwC’s Semiconductor pricing survey indicates that the current maturity of semiconductor companies in establishing and executing pricing strategies to achieve corporate goals and drive profitability is significantly low. The report summarizes some of the common gaps in pricing management practices that we have observed in the semiconductor industry and the resulting impact. Is your business prepared?

How PwC can help

As your business grows across all areas—PwC is here to help you from strategy through execution. For a deeper discussion on our Service Offerings please contact one of PwC’s US Technology Industry leaders.

Contact us

Kayvan Shahabi
US Technology Industry Advisory Leader
Tel: +1 (408) 817 5724
Email

Raman Chitkara
US Inbound Assurance Leader
Tel: +1 (408) 817 3746
Email

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