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ThePulseoftheSemiconductorIndustryBalancingresiliencewithinnovationCopyright©2023

Accenture.Allrightsreserved.每日免费获取报告1、每日微信群内分享7+最新重磅报告；2、每日分享当日华尔街日报、金融时报；3、每周分享经济学人4、行研报告均为公开版，权利归原作者所有，起点财经仅分发做内部学习。扫一扫二维码关注公号回复：研究报告加入“起点财经”微信群。。IntroductionSemiconductorcompaniesareatthecenteroftechnologyinnovation,finance,geopolitics,andhumaningenuity,touchingvirtuallyeveryaspectofbusinessandpeople'slives.Thepastfewyears,however,havebeenfarfromsmoothsailing.Theindustryisstillreelingfromthechipshortagecrisis,andmanufacturersarechallengedtocreategreaterresiliencyduetocontinuallyincreasingdemandsonanalreadyfragilesupplychain.Semiconductorcompaniesalsofaceheadwindslikegeopoliticalconflictsdisruptingenergysupplies,recordeconomicinflation,recessionfears,withatightlabormarketthat’smakingitdifficultforcompaniestorecruitandretainskilledtalent.Battlingdisruptionsonmultiplefrontscancomplicatesemiconductorcompanies'

effortstoachievetheirgrowthgoals.Buttheopportunitiesarethere.NewresearchfromAccenture(seebox,“AbouttheResearch”)exploressomeofthechallengestheindustryfaces,providesanindustryoutlookfortodayandtomorrow,andhighlightsopportunitiestocapitalizeonemerginggrowthopportunities.01

Thestateoftheindustrytoday;Wesurveyed300globalsemiconductorexecutivesfor

theirinsightson:02

Thetechnologyandproductoutlookforthetwoyears;03Theroleofsemiconductorsineach.2ThePulseoftheSemiconductorIndustry:Balancingresiliencewithinnovation|Copyright©2023Accenture.Allrightsreserved.Ourstudyexploredfourselecttechnologiesandend-userapplicationsthathavecleargrowthpotentialforsemiconductorcompaniestoenhancetheirbusinessandofferings:67%ofexecutivesagreethatsemiconductorsarethecapabilitymostcriticaltothemetaverse'sdevelopment.Metaverse28%ofrespondentsviewthemetaverseasthemostlikelyamongthesetechnologiestoachievecommercializationatscaleinthenexttwoyears.Seemore37%ofrespondentsbelievesustainabilitywilllikelyplaythelargestroleinthesemiconductorvalueSustainabilitychainwithinthenextfiveyears.64%ofexecutivesbelievetheycanachievecarbonneutralitywithinSeemoretwoyears.93%ofexecutivesthinkmotorvehiclemanufacturingcompaniesshouldpartnerwithtechnologycompaniesonnext-generationmobility.MobilityAmajorityofrespondentsviewedsemiconductordesignfirmsorintegrateddevicemanufacturersas

theidealpartner.Seemore28%ofrespondentsbelievewearableswillbenefitthemostfromcontinuedsemiconductorinnovation.Digitalhealth36%ofexecutivesthinkwearablesarealreadyhavingasignificantimpactonimprovinghealth.Seemore01

TheyrepresentthekeyinfluentialtechnologiesidentifiedbyCES(ConsumerElectronicsShow)analysisasthosethatofferthegreatestpotentialtoadvance

ourworkandlife;andThesefourareaswereselectedfortworeasons1:02

Regardlessofcountry,theseareamongthetopprioritiesacrosstheglobalsemiconductorindustry.1“CES2022Analysis:ThemesThatWillInfluenceHowWeWorkandLivein2022andBeyond"

SeriousInsights01/10/20223ThePulseoftheSemiconductorIndustry:Balancingresiliencewithinnovation|Copyright©2023Accenture.Allrightsreserved.ThefutureBeforedivingintothefourfocusareas,let’shighlightwhatsemiconductorexecutivesthinkaboutthestateoftheindustrytoday,andtwoyearsfromnow.Wefoundalmost2outof3(65%)executivesbelievethatMoore'sLawwillslowdownby2025,potentiallycausingthesemiconductorindustrytobalanceinnovationwithresilience.Inflationandeconomicconcernscontinuetobethetopchallengeforthesemiconductorsupplychainamongexecutivessurveyed(Figure1).Furthermore,executivesbelieveecosystemconsiderationssuchaschipsovereigntyandgeopoliticswillhavethegreatestimpactonsemiconductorinnovationinthenext12months(Figure2).Thepressuresontheindustryarereal,andexecutivesarefocusedondeliveringindustrystability.Infact,56%ofexecutivesbelievethebestwaytoenhancetheindustry'sresilienceisbypromotingstrongIPprotectionandenforcementsocompaniescansharetechnologywhileprotecting

theirinvestment.They'realsofocusedontechnology-enabledinnovation.Figure1:Greatestchallengesforthesemiconductorsupplychaintoday35%20%18%14%12%Inflation/EconomicConcernsLingeringCovid-19ImplicationsTalentPipelineLackofInvestmentGeopoliticsFigure2:Factorswiththegreatestimpactonsemiconductorinnovationinthenextyear48%42%39%EcosystemconsiderationslikechipsovereigntyandgeopoliticsCybersecurity(company-levelandIoTdevice)Changingcompetitivelandscape4ThePulseoftheSemiconductorIndustry:Balancingresiliencewithinnovation|Copyright©2023Accenture.Allrightsreserved.Executivesalsoreportedamoreprominentroleforartificialintelligence(AI)—bothintheenterpriseandinthesemiconductordevelopmentprocess.Oneintwo(50%)respondentssaidtheyareeitherdeployingorscalingAI’suseinanalytics,andjustoverhalf(52%)reportedtheircompanyreliesonanevenbalancebetweenhumansandAIindevelopment.21%indicatedtheircompaniesrelymostlyonAIinsemiconductordevelopment.Whatdoesthefutureholdfortheindustry?Executiveswereremarkablyconsistentintheirviews.Figure3illustratestheirtoppredictionsforthenexttwoyears.Whilethere'snoonedefiningissue,thesupplychainistopofmind,slightlyaheadofin-housechipmanufacturingandthetalentshortage.Figure3:Howthesemiconductorindustrylandscapemaychangeby202477%76%75%74%73%72%ThesupplychaincanbefreefromCOVID-19'slingeringeffectsThesemiconductorsupplychain'schallengescouldberesolvedThemajorityofconsumertechnologycompaniescanmovesemiconductormanufacturingcapabilitiesin-houseTheindustry'stalentshortageisontracktoberesolvedThemajorityofthesupplychaincanbedigitizedwithcloud,analytics,etc.Themetaverse'scomputationalinfrastructurecouldbecompletedinlightofthecurrentchipshortageandsupplychainfragilityWiththeseinsightsasthegeneralbackdropforwheretheindustryistodayandwhereit’sheaded,let’sexplorewhatexecutiveshadtosayaboutthefourfocusareas:themetaverse,sustainability,mobility,anddigitalhealth.5ThePulseoftheSemiconductorIndustry:Balancingresiliencewithinnovation|Copyright©2023Accenture.Allrightsreserved.MetaverseInthethirtyyearssincethemetaversetermwascoinedbysciencefictionwriterNealStephenson,gradualadvancementsintechnologypromisetoturntheconceptintoreality.HighTechcompaniesarebuildingthe

infrastructuretocreateanenvironmentthat’sripeforaccess,engagement,consumption,

andconsumers.Whatarethelikelyoutcomesofthemetaverseasthetechnologymatures?Amore-immersiveworkexperience,includingbetterhybridworkandimprovedonlinelearningandeducation,

werecitedasthemostlikelyoutcomesbyexecutivesinoursurvey(Figure4).Figure4:Likelyoutcomesofthemetaverseasthetechnologymatures48%Improvingthehybridworkexperience47%Improvingonlinelearningandeducation43%Deliveringamoreimmersiveexperience4in101in4(42%)saidthemetaversecancreatenewbusinessopportunities25%saidthemetaversecan

playthelargestroleinthesemiconductorvaluechainwithinthenextfiveyearsorsooner6ThePulseoftheSemiconductorIndustry:Balancingresiliencewithinnovation|Copyright©2023Accenture.Allrightsreserved.It’snosurprisethatsemicompaniesaregearinguptocapitalizeonthemetaverse,asevidentintheexpectedjumpintheirproductionallocatedtothatspacewithinthenexttwoyears(Figure5).Figure5:AllocationofsemiconductorproductiontothemetaverseTodayIntwoyearsMinimal(<10%)27%Minimal(<10%)11%Low(10%-20%)42%Low(10%-20%)44%Medium(21%-50%)25%Medium(21%-50%)35%Significant(>50%)5%Significant(>50%)9%Theprojectedgrowthoverthenexttwoyearscanbeattributedtothescalingofthemetaverse,enabledbysemiconductors.ofexecutivesviewthemetaverseasthemostlikelyofthefouragreethatsemiconductorsarethecapability

mostcriticaltothemetaverse’sdevelopment—farmorethanhardware(10%)orsoftware(23%)28%67%technologiestoachievecommercializationwithinthenexttwoyearsMeetingthatneedwillrequiretechnologyinnovation,whichexecutivesindicatedisthebiggestchallengefordeliveringcustomsemiconductorstometaversecompanies—biggerthanchiportalentshortages,oreventheconditionoftheeconomy.While88%ofexecutivessaidthepotentialthemetaversecanbringtosemiconductorcompaniesissignificant,theresultsmaybeunevenlydistributedacrossthevaluechain(asitcurrentlystands).Forexample,virtuallyallexecutivesbelievelarge-scalemanufacturersthathavethecapacitytoproducechipswillbenefitthemostfromthemetaverse.Thereis,however,arguablylessconfidenceincommercialization.Weexpectconfidencewillincreaseaswecontinuetounderstandwhatcanbeachievedtechnologically—solongaschipinnovationcontinues.Futuresuccesslikelyhingesuponextendingbeyondsemiconductor

companieslegacybusinesstoenablethevaluepotentialtheircustomers'

demand.Theyjustneedtothinkmorecreativelyabouthowtodoit.22“Hardware’sNewReality:HowHighTechcanFindGreaterValueintheMetaverse,”Accenture11/29/20227ThePulseoftheSemiconductorIndustry:Balancingresiliencewithinnovation|Copyright©2023Accenture.Allrightsreserved.OurtakeEvaluatewheretoplayinthelargermetaversevaluechainThemetaversehasenteredthecollectivebusinessandconsumerconsciousness,andthere'snogoingback.Manycompanieshavededicatedroles,offerings,andcapabilitiesthatallowthemtobethefirst-to-marketandleadexperiencedrivers3.Forsemiconductorcompanies,theirplaceinthemetaverseisstillinitsinfancy.Theymakethechipsthatpowerthedevicesandtechnologies.However,semiconductorcompaniesareusingthemetaversetofocusonthevaluechain,allowingthesecompaniesto:•••ApplyR&DtoengageinnewcapabilitiesUseexistingcapabilitiesindifferentwaysDevelopbeyondtheircorechipbusinessThegoalistotapintothemore-lucrativesegmentsofthisexcitingnewspace—includinghelpingtobuildtheplatformanddesigntheexperiencesthatsupportthemetaverse.AMDisagreatexample.Attheir2020FinancialAnalystDay,AMDfocusedonareasotherthanthemetaverse.Fast-forwardtwoyearsandoneacquisitionlater,thecompanyhighlightedits“deepinvolvement”inthemetaverseand“beingattheforefrontofwhere[it’s]going,”attheir2022FinancialAnalystDay.AMDarguablyseesamulti-prongedopportunityacrossitsIPportfoliobydevelopinghighlyvisualandimmersivecontentandtransformingthesemi-custombusinesstooffercustomersnewsolutions.Today,thecompanyiswell-positionedasametaverseenablerofproductslikedatacenters,nearandedgecomputinganddevices.It'salsothedefactostandardfor3Dcontentstudios,gamingconsoles,phonesandPCs.Lookingatwhattheyaccomplishedintwoyears,thenexttwoarelikelytounlockevenmoreinnovation.434"MeetingintheMetaverseRequireChipInnovation,"AccentureHighTechBlog07/13/2022“FinancialAnalystDay,”AMDInvestorRelations06/09/2022.ContentbasedonAccentureanalysis.ThePulseoftheSemiconductorIndustry:Balancingresiliencewithinnovation|Copyright©2023

Accenture.Allrightsreserved.8SustainabilitySustainabilityisacriticalissueforallcompanies,includingthoseinthesemiconductorsector.Growingchipdemandrequiresincreasedproductionwhich,requiresmorepower,water,andothernaturalresources.Forexample,overallenergyuseinchipproductionhasdoubledeverythreeyearssince2010andcouldconsumenearly20%ofplanetaryenergyby20305.Ifthisratecontinues,alargechipfab(fabrication)canuseupto10milliongallonsofwateraday,equivalenttothewaterconsumptionofroughly300,000U.S.households6.Despitethesustainabilitychallengestheyface,semiconductorexecutivesremainoptimistic.64%ofsemiconductorexecutivesbelievetheycanachievecarbonneutralitywithintwoyears.Infact,ofthefourareasstudied,sustainabilityiscitedbythelargestpercentageofexecutives(37%)asmostlikelytoplaythebiggestroleinthesemiconductorvaluechaininthefuture(e.g.,withinthenextfiveyearsorsooner).Over90%ofexecutivesagreedthatmoresustainablesemiconductorpracticescanresultsinmoresustainableconsumerproducts,

(94%)andsustainabilityinitiativescan

haveapositiveimpactonprofitability(93%).And,alargemajoritybelievesustainabilitycanbeaccuratelymeasurednotonlyintheconsumerproductlifecycle'smanufacturingprocessandtransportation,butalsoinproductusageanddeviceretirement(Figure6).Figure6:Cansustainabilitybeaccuratelymeasuredacrossthefollowingpartsoftheconsumerproductlifecycle?90%84%78%ManufacturingProcessTransportationUsageandRetirement5“DepartmentofEnergyAnnouncesPledgesfrom21OrganizationstoIncreasetheEnergyEfficiencyofSemiconductorsandBolsterAmericanManufacturing,”U.S.DepartmentofEnergy09/21/2022“ScarcityDrivesFabstoWastewaterRecycling,”IEEESpectrumOnline01/25/202269ThePulseoftheSemiconductorIndustry:Balancingresiliencewithinnovation|Copyright©2023Accenture.Allrightsreserved.Howcansemiconductorcompaniesgettoamore-sustainablefuture?Fromamanufacturingperspective,companieshavealreadyembarkedonvariousinitiativestocreateamoresustainablemanufacturingprocess—ledbydeployingIoTandEdgecomputingtomonitorenergyconsumption(Figure7).Figure7:Initiativessemiconductorcompanieshaveenactedtoenableamoresustainablemanufacturingprocess52%IoTandEdgeComputingforMonitoringEnvironmentalControlsandEnergyManagement48%CloudComputing46%AnalyticsandPredictiveMaintenanceProgramsRenewableEnergyUsage44%41%39%EthicalRawMaterialsSourcingSolarPower/GasAbatement/LEEDCertificationAchievement/SmartBuildings30%WaterRecycling27%NetZeroCommitmentsBeyondtheirinternalfacilities,semiconductorexecutivesbelieveanumberofactionscouldhelpdrivemoresustainableecosystemoutcomes(e.g.,products,processes,andoperations)(Figure8).Figure8:Wayssemiconductorcompaniescouldcreatemoresustainableecosystemoutcomes55%Optimizingsourcingmaterialswhile50%47%Securingcleanerbackuppowergenerationcapabilities43%ParticipatinginthecirculareconomyfromthedesignstageFocusingondesigninnovationthatcouldleadtopotentiallybiodegradableconsumerelectronicsminimizingwasteOptimizingsourcingwhilereducingwastewasthetopchoice,butexecutivesalsobelievepayingcloserattentiontoinnovationatthedesignstagetocreatemorecircular(and,perhapsevenbiodegradable)productsiskey.Importantly,semiconductorcompaniesareputtingmoneybehindsuchefforts(Figure9).Figure9:Percentageofcompanies’budget(e.g.capex/opex)dedicatedtosustainabilityprograms<10%10%-20%21%-30%>30%18%33%41%8%10ThePulseoftheSemiconductorIndustry:Balancingresiliencewithinnovation|Copyright©2023Accenture.Allrightsreserved.OurtakeBakesustainabilityintocoremanufacturingandprocesscapabilitiesTechnologyenablessustainablebestpractices,andsemiconductorsareatthecore.It’savirtuouscycle,oneinwhichsemiconductorcompaniesmanufacturethechipsthatenablesustainability,whichinturnhelpssemiconductorcompaniesaddressorsolvetheirownsustainabilityissues.Thechallengeismakingsureittrulyimprovesthebusiness—especiallyinmanufacturing.Formaximum,positiveimpact,sustainabilityinitiativesinmanufacturingandprocesscapabilitiesmust:••Planwell,execute,andmeasurewithadvancedanalyticsIncludeincorporateobjectives,notjustan“addon”Semiconductorcompaniesneedtoworkcloselywitheachotheroninitiativesthatcanmovetheentireindustryforward.AgoodexampletostartistheSemiconductorClimateConsortiumtoreducegreenhousegasemissionsacrossthesemiconductorvaluechain7.Sharingaccumulatedknowledgeandinnovativetechnologyin

thisconsortiumcanhelpcompaniesacceleratetheirsustainabilityeffortsandprogresstowardtheirclimategoals.Alogicalfirststepistoimplementandtracksustainabilityprograms,startingwithdigitaltoolssupportedbyanalytics.Then,supportedbycollaborationandinformation,sustainabilitybecomesanindustryimperativeinsteadofremainingatthecompanylevel.Finally,innovationwillcontinuetopropeltheindustryforward—initsproductsandwithagreenerapproach.7“SemiconductorClimateConsortium,”Sretrieved11/202211ThePulseoftheSemiconductorIndustry:Balancingresiliencewithinnovation|Copyright©2023Accenture.Allrightsreserved.MobilityThepersistentchipshortagehasdisruptedtheautomotiveandelectronicsindustries,forcingsomecompaniestoscalebackproduction.Newvehiclescancontainuptoanywherefrom1,000to3,500chipscreatingadownstreameffect8.Therearesignstheshortageiseasing:October2022’sreportedleadtimeswere25.5weeks,comparedwith26.3weeksinSeptember.Thehighestleadtimesof27.1weekswasinMay,comparedwiththe24.4weekdelayinthepreviousOctober9.Chipproduction(inweeks)27.126.325.524.4October2021May2022September2022October2022Asmoreandmoredigitaltechnologiesareintegratedintoautonomousvehicles,semiconductorcompaniesneedtobeawareoftrendsinthespaceandtheopportunitiestheycreate.Forexample,traditionalmodesoftransportationareupendedwithdronedeliveryandairtaxisalreadyonthehorizon.

Autonomousvehiclesaren’tthatfaraway.42%ofexecutivesbelievesomeformofautonomousvehicleswillbecomemainstreamforpersonalusewithinjustthenexttwoyears89"HarnessingthePoweroftheSemiconductorValueChain,"Accenture02/01/2022“ChipDeliveryTimesShrinkinSignThatSupplyChainIsEasing,”Bloomberg,10/17/2022.SupplementaldataprovidedbySusquehannaResearchasofNovember202212ThePulseoftheSemiconductorIndustry:Balancingresiliencewithinnovation|Copyright©2023Accenture.Allrightsreserved.Withinthreetofiveyears,alargemajorityofexecutivesexpectautonomousvehiclestobecommonforlocalandlong-haultrucking,andmasstransportation.Innovationlikethiscontinuestobepoweredbyseveralsemiconductor-enabledtechnologies.ThemostprominentoftheseareAI,machinelearning,andnaturallanguageprocessing(Figure10).Figure10:Top3semiconductor-enabled

technologiesdrivingmobilityinnovation46%43%41%AI/MachineLearning/NaturalLanguageProcessingNext-LevelProcessAutomationandVirtualizationNext-GenerationComputing(e.g.,Quantum,EdgeComputing)Atthesametime,executivesacknowledgethatsubstantialroadblockstoscalingmobilityproductsremain(Figure11).Thebiggestofthese,despiterecentimprovement,isasignificantextensionofthecurrentchipshortage,followedcloselybycostconcerns.Figure11:Substantialroadblockstoscalingmobilityproducts,technologicalorotherwise52%50%SignificantextensionofthecurrentCostand/oravailabilityinlightofthecurrentsemiconductorshortageeconomicenvironmentOnewaytoovercomecurrentobstaclesisbyestablishingcross-industrypartnerships.93%ofexecutivesbelievemotorvehiclemanufacturingcompanies

shouldpartnerwithtechnologycompanies

todevelopandultimatelydeploynext-generationdigitalmobilitytechnologies.Theidealpartnersforsuchajointventure(JV),accordingtoexecutives,aresemiconductordesignfirms(31%)andintegrateddevicemanufacturers(25%).Asisthecasewiththeotherfocusareasinourstudy,mobilitywillgainmoreattentionfromsemiconductorcompaniesinthenearfuture,withagrowingportionofproductiondedicatedtomobility-relatedproducts(Figure12).Figure12:AllocationofsemiconductorproductiontomobilityTodayIntwoyearsMinimal(<10%)26%25%Minimal(<10%)11%Low(10%-20%)44%Low(10%-20%)43%42%Medium(21%-50%)Medium(21%-50%)Significant(>50%)4%Significant(>50%)5%13ThePulseoftheSemiconductorIndustry:Balancingresiliencewithinnovation|Copyright©2023Accenture.Allrightsreserved.OurtakeCompetingwithnon-traditionalandnewmarketentrantsUnlikethemetaverseandsustainability,semiconductorcompanieshaveaclearunderstandingofwheretofocustheirtimeandeffortsfortheexactapplicationsanduse-casesoftheirchips.Thestruggleisbalancingdemand,supplychainchallengesanddesignspecificationsfortraditional,electric,andautonomousvehicles.Atthesametime,semiconductorcompaniesneedtoforecastplanningandaddresshigh-qualitysupplysourcingandmanufacturingrequirements.Somecompaniescould:•••Create

businessfunctionsseparatedbyautomotiveandnon-automotiveEstablishpartnershipswithexistingclientsandallocate/secondengineeringtalentasneededEngageinM&AorJVstodevelopin-housetechnologiesthatalignwiththeirmarketalignmentgoalsSomeautomotivecompaniesareforgingaheadontheirown.Recently,GeneralMotors’sautonomousdrivingunitsaiditwilldeployitsin-housedesignedchipsby2025,todecreasecostsandincreasevolume.TeslastruckaJV

withSwissautomotivesemiconductorcompany,

Annex,markingthefirsttimeanautomotivecompanywillbeinvolvedinthedesignandmanufacturingofchipsinChina.Finally,IntelrecentlycompletedtheIPOforMobileye™,

itsautonomousdrivingbusinessunittounlockgreatervalueforIntelshareholdersandthecompany

alike.10

11

1210

“UpsetbyHighprices,GM’sCruiseDevelopsitsownChipsforSelf-DrivingCars,”Reuters09/13/202211

“CanChipFirmsleadtoCutting-EdgeProductsBeingProducedDomestically?,”AsianNewsNetwork12/07/202212

“MobileyePopsMorethan37%inMarketDebutafterSpinningoutofIntel,”CNBC10/26/202214ThePulseoftheSemiconductorIndustry:Balancingresiliencewithinnovation|Copyright©2023Accenture.Allrightsreserved.DigitalhealthEnterprisesofalltypesarerollingoutincreasinglyinnovativedigitalhealthstrategies.Whetherthefocusisdevelopingelectronichealthrecords(cloudcomputing),creatingdata-drivenrecommendations(AI),or

enablingtelehealthofferings(devicesandconnections),leadingorganizationscanfundamentallychangeboththewayhealthcareisdeliveredandthehealthconsumer's

experience.Inthecurrent

landscape,patientsareactivelydemanding—andreceiving—healthcareandhealthexperiencesconsistentwithdailylife.Asaresult,thedigitalhealthagendahasbecomeapriorityfortheC-suitetocontinuouslyunlock

insightsandexpandproductsandservicesthroughoutthepatientcontinuum.89%ofsemiconductorexecutivesagreethatdigitalhealthinnovationscanincreasethedemocratizationofhealthcare.Semiconductorinnovationisresponsiblefortheconsumersgreaterhealtheducationandliteracy,accessedbydigitalhealthproducts.(Figure13).Figure13:Semiconductorinnovationenablingdigitalhealthproducts21%Increasedhealtheducationandhealthliteracy18%Proliferationofwearablehealthdevices15%Proactivescreeninganddiagnosis14%9%

9%

8%

6%DatasharingCareReceivingcareDailywell-Accesstocaremanagement&adherence(clinicalworkflow,postdiagnosis)being15ThePulseoftheSemiconductorIndustry:Balancingresiliencewithinnovation|Copyright©2023Accenture.Allrightsreserved.Wearabledevices,inparticular,willbecomeincreasinglyimportantandpervasiveaspeople

growmoreproactiveaboutmonitoringandmanagingtheirhealth.Infact,36%ofexecutivesthinkwearablesarealreadyhavingasignificantimpactonchanginghealthforthebetter.50%stillbelievemoretimeisneeded.Since

wearablesareontheirwaytoimprovinghealth,respondentsbelievethattheyhopetoseesignificantimpactwithinthenextfiveyears.Inthedevicespace,widelyavailablewearables—agrowingpartofthedigitalhealthecosystem—havethemostgrowthpotential,accordingtoexecutivesinoursurvey(Figure14).Theyincludefitnesstrackers,wearablesandbodysensors.Interestingly,71%believeselectdiagnosticimagingtoolswilleventuallybedigitizedandcommoditizedenoughtobecomewearabledevices.Figure14:Wearabledeviceswiththemostgrowthpotential42%38%21%Sensors34%21%Trackers28%19%17%FitnessSmartBodyLocationTrackersWatches23%

SmartHearablesHead-SmartGlassesClothingImplantables19%18%

Mounted

18%

SmartWearableCamerasSmartShoesDisplaysJewelryRecognizingtheopportunities,semiconductorcompaniesarerampingupinvestmentstoservethedigitalhealthmarket,withagrowingportionoftheirproductionearmarkedforsuchapplications(Figure15).Figure15:AllocationofproductiontodigitalhealthMinimal(<10%)Low(10%-20%)Medium(21%-50%)Significant(>50%)Today19%46%29%6%Intwoyears13%39%42%6%16ThePulseoftheSemiconductorIndustry:Balancingresiliencewithinnovation|Copyright©2023Accenture.Allrightsreserved.OurtakeFocusonspecificapplications,notbroad-basedtechnologyCurrentdigitalhealthtrends,muchlikethoseinthemetaverse,shareacommontheme:application.Semiconductorcompaniestraditionallythinkabouttheirtechnologyfromacapabilitiesstandpointintermsofmodems,connectivity,andspeed.Asdigitalhealthevolvesfromdevicestoapplications,chipmakersmustconsideroutcomesandusagetodeliveronthetechnology’spromise.Muchlikeenablingthemetaverse,companiesshouldconsidertoday'sdemandwithtomorrow'spromise—intermsofeconomics,capacity,

andoutcomes.Forexample,researchersattheUniversi