Io t semiconductor perspective (ara) 150313

ARA Research

ARA (March’15)- © 2015 -

ARA Research

IoT:A Semiconductor Perspective

A.R. AlvarezGlobal Semiconductor Forum

Shanghai, ChinaMarch 13, 2015

Semiconductors

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ARA Research

WW Semiconductor Sales

Will IoT Significantly Impact CAGR?

“Semiconductor Industry Primer 2014”D. Wong (Wells Fargo) Nov’14

15% CAGR

4% CAGR

Semiconductors

ARA (March’15)- © 2015 - 3

ARA Research Annual IoT Device Sales

30 – 50B Connected Devices by 2020, ~10Bu Sales

Bank of AmericaMerrill Lynch Dec’14

Semiconductors

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ARA Research IoT Economic Value

$3 - 9T – Who Will Capture The Value?

Semiconductors

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ARA Research 2020 Value Pyramid

Value Factor of ~3 Increase at Each Level

IoT / IoE Value Creation~$9T

Semiconductor EnabledProduct End Market ~$2.5T

IC Sales~$350B

Finished Wfrs~$100B

Semiconductors

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ARA Research IoT Reference Model

Semiconductor Components Mostly Level 1

Semiconductors

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ARA Research WW IC Unit Shipments

IoT Units ~3% of Total IC Unit Shipments in 2020

Bank of America – Merrill Lynch, Dec’14IC Insights, June’14

Extrapolated

IoT UnitFcst

Semiconductors

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ARA Research

2020 IC TAM ~$350B, IoT ~2%2020 IC Units ~310Bu, IoT ~3%2020 Silicon MSI ~12,000 ~1.5%

IoT Silicon Context in One Graphic

DPW

3,800

15,000

1,600

6,500

Wfrs /Mth

64K

260K

28K

110K

% Wfrs

1%

4%

0.5%

2%

ASP

30¢

$1

IC TAM

$7B

$8B

DieSize

4mm2

16mm2

Semiconductors

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ARA Research

IoT: Where is the Money?Semiconductors

(Wireless Comm, Sensors,µC)

IoT – The Next RF ID For the Semiconductor Industry?

Industry Needs to Move Beyond Silicon to Capture Full Value

Big Data(Storage,

Analytics, …)

Telecom(Networks, Wireless

Infrastructure)

IoTCisco, Huawei, Ericsson,

… Supply ChainIBM, Oracle, EMC, HP,

… Supply Chain

Semiconductors

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ARA Research

Value is Not in Number of Things

But The Connections of People, Process,Data & Things IoE in Action, J. Bradley,

Cisco, Nov’14

ARA Research

ARA (March’15)- © 2015 -

ARA Research

Appendix

Semiconductors

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ARA Research

Semiconductors Enable $1.5TEnd-Use Systems Market

IC InsightsDec’14

Semiconductors

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ARA Research

IC End-Use Markets ($B)IC Insights

Dec’14