Capgemini-芯片行业核心的软件革命（英）

Softwarizationfo「Semiconductors

Thesoftware

revolutionatthe

heartofthechip

industry

Softwarizationfor

Semiconductors

Attheheartofourera’sdigitaltransformation–powering

everythingfromsatellitesintheskytoconsumerdevicesinourhands–itallcomesdowntotiny,intricatesemiconductorchips.

Today,thechipindustryisundergoingaquietevolutionthatwill

profoundlyaffectthedigitalworld.Softwarizationiscomingtochipmanufacturers.

Whatcanchipcompanies–andtherestoftheindustries–expect?

InthisPointofView,we’llexploretheopportunitiesfacingchipcompaniesatthisturningpointandsomeofthechallengesalongtheway.We’llanswerthe

questions:

•Whatisdrivingthissoftwarizationshift?

•WhatopportunitiesdoesthiscreateforSemiconductorcompanies?

•Wherecanthesecompaniesexpecttofindvalue?

•Whatisholdingcompaniesback?

Formidableobstaclesstandintheway.Many

semiconductorcompaniessharethegoalofbecomingmore‘software-centric’butlackaclearrouteforwardtoacceleratethetransformation.Somehavetaken

theirfirststepsintherightdirectionbutrealizedthatsoftwarizationisevenmorecomplexthanexpected.

Let’sshedsomelightontheroadahead.

2SoftwarisationforSemiconductors

3

Themarchofsoftware

Intheearly2010s,anewideawasbornintheautomotiveindustry.

Anup-and-comingengineerneededsoftwaretocompletehisvision

butcouldn’tfinditonthemarket.Hedecidedthathiscompany

wouldbuildit.

Tesla’slongtimechiefinformationofficer,JayVijayan,sharedwhat

ledthemtodeveloptheir“Warp”system:

Elon’svisionistobuildaverticallyintegratedorganizationwhere

informationflowhappensseamlesslyacrossdepartmentsandwherewe

haveaclosedfeedbackloopforourcustomers.

Teslaisasmuchasoftwarecompanyasitisahardwarecompany”

ElonMusk

Teslacreatedaholisticsoftwareplatformonavehiclethatwastraditionallyconsideredasapurehardware

product.Thisrevolutionizedtheentirethinkingfortheautomotiveindustry.

Sincethatmoment,themarchofsoftwareinthe

automotiveindustryhasbeenunstoppable.(see

–

PuttingCustomersattheHeartoftheMobility

ExperiencebyCapgemini

)Whatbeganontheperiphery–smallapplicationshereandthere–hasmovedto

thecore.Inmanyways,automotiveOEMstoday

manufacturetheirvehicles’physicalcomponentstofittheirsoftware’sneeds.

Forautomotiveleaders,theshifthasnotbeeneasy.Inaworldwhereproductiterationstraditionallytookyears,

thepaceofsoftwaredevelopmentrequiredentirely

newsystems,businessmodels,andmindsets.The

ideaofreleasinganMVPsoftwareproductcompletelycontradictstraditionalautomotivemanufacturing,

whereasingleflawcanbedisastrous.Theroleand

paceofinnovationisalsodifferent.Engineering

progresstendstobeslowandsteady,whereas

softwarecapabilitiesareexplodingataratethat’s

hardeventokeeptrackof,letaloneleverageinto

innovativeproducts.

Thesameprocessisunderwayinthe

telecommunicationsindustry,thehealthcareindustry,andonandon.Thesteadymarchofsoftware.

ButwhataboutSemiconductorcompanies?Whichcompanieswillbereadyforit?

Opportunitieson

thehorizon

Thefirstquestionis:whathorizonarewelookingat?Assemiconductor

companiesevolvefrommassproductionofstandardchipstoproducemore

mission-specificchips,newopportunitiesarise.Herearesometrendswe

canexpect:

Morecustomchips:

Morecustomeverything,in

fact,andchipsarenoexception.Multipletrendsaredrivingtheneedformorespecializedchips,oftencalledApplication-SpecificIntegratedCircuits(ASICs)

MachinelearningandAI:

StandardCPUsarenotoptimizedforthematrixoperationson

whichmachinelearningisbased.CustomsiliconlikeGoogle’sTensorProcessingUnits(TPUs)and

NeuralProcessingUnits(NPUs)byothervendorsarespecializedforthesetasks.

Energyefficiencyfor

mobileandIoTdevices:

Customchipscanbeoptimizedforenergyefficiency,whichiscriticalforbattery-powereddevices.

Security:

Chipscanbedesignedwithsecurityinmindfromthegroundup.

(Apple’sT2chip,forexample,is

usedforsecurebootandencryptedstorage.)

Edgecomputing:

Ascomputingmovescloserto

thedatasource,lower-power

customchipsoptimizedforedge

computingtaskslikeAIinference

areneeded.

Quantumcomputing:

Asthistechnologymatures,

specializedchipsdesignedtowork

withquantumprocessorswilllikely

becomemorecommon.

4SoftwarisationforSemiconductors

5

NvidiaandDominance

inGenerativeAI

NvidiamakesthechipsdrivingtheGenerativeAIrevolution–and

makenomistake,itisarevolution.However,despitemakingchipsliketheH100andnowtheH200,NvidiaisnotaSemiconductorcompany.Itisaplatformcompany,andplatformmeanssoftware.Nvidiafocuses

onbringingdevelopersontotheirsoftwareplatform,whichcreatesswitchingcoststootherchip

manufacturers’emergingAIchips.

Thehardware-centric

approach

Whendeveloping“customchip”foranindustry,thecurrentstateofsemiconductor

companiesisheavilyfocusedoncustomsilicondesigntomanufacturingchips

withrequiredfeaturesandcapabilitiesthatcatertotheneedsoftarget

industrysuchasautomotive,healthcare,ortelecommunications.

Thisiswhatwecalla“Hardware-centric”approach.

Today,theseopportunitiesaremetprimarilywithahardware-centric

approach.Thefocusisoncreatingaproductthatmeetstheindustry’s

uniquehardwareneedsfirst,andtheprimaryvalueliesinthephysicalchip

capabilities.Softwareplaysa‘supportingrole,’developedtocomplementand

supportthehardwareafteritsspecificationshavebeenestablished.

Ofcourse,eveninahardware-centricapproach,thesoftwareisessentialtoexploit

achip’sfullpotential.Thesoftwaremakesthehardwareaccessibleandvaluableto

theend-userbyprovidingthenecessaryinterfaces,controls,andcustomizations.

ThisHW-centricapproachhasseveralchallenges,namely:

Additionalchallengesdrivenbyahardware-centric

approachareInventoryandlogisticscomplexitiesanda

morelimitedcustomerexperience.

a.Longleadtimes.Time-consumingdesignand

manufacturingprocessesduetothecomplexity

ofcustomHW–oftenleadingtomissedtime-

to-markettargets.

b.Rigidsolutionsandfixedfunctionality.HWwith

fixedfunctionsdesignedforspecifictaskswithin

anindustry,withlimitedflexibilityforupdatesor

changesoncetheHWisdeployed.

c.Softwarecostsconstituteasignificantportion(upto

40%)oftheoverallbudget,yetthere’snoeffective

correspondingrevenuemodel.Softwareisacostof

doingbusinessratherthanaproducttobesold.

d.ThehardwarelimitsSWcustomizationpossibilities

–hence,therearefewopportunitiesforadditional

SW-basedrevenue.

TheCasefor

Softwarization

WithSoftwarizationforSemiconductors,the

visionofChiptoIndustrycanberealizedina

timely,cost-effectiveway.Theobjectiveisto

developamorestandardized,limitedsetof

basechipsthatcanbecustomizedforvarious

industriesandsolutionsthroughsoftware.

Theideaistoreducethenumberofunique

hardwaredesignsandinsteadleveragesoftware

toprovidetheindustry-specificfunctionalities

–movingthe“logic”fromsilicontosoftware.

Thebasisofcompetitionbecomesthesoftware

stack,nolongerthehardwarestack.

6SoftwarisationforSemiconductors

“SoftwarizationforSemiconductorsrealizestheChiptoIndustryvisioninatimelyandcost-effectiveway”

7

TheIndustryFramework

Software-designedcustomsiliconisvalidatedagainstindustryframeworksforperformanceandfunctionality,astheintegratedsolution(hardwareplussoftware)mustmeetthestringentperformanceandfunctionalitystandardsofspecificindustries.

An“industryframework”isasetofstandards,regulations,guidelines,orspecifications

establishedbyindustrygroups,regulatorybodies,orstandard-settingorganizations.These

frameworksensurethatproductsandservicesmeetspecificquality,performance,safety,

compatibility,andinteroperabilitylevelswithinaspecificindustry.Concretely,itcaninclude:

QualityCertifications:

Productqualityandreliability

benchmarks,suchasISO

9001forqualitymanagement

systemsortheAutomotive

QualityStandardIATF16949.

Industry-Specific

SoftwareProtocols:

Softwareframeworksmightincludecodingstandards,

architecturalguidelines,andprotocolswidelyacceptedinspecificindustries.

SecurityProtocols:

Inindustrieswhere

datasecurityis

paramount,likefinanceorhealthcare,there

arespecificstandards

fordataprotectionand

cybersecurity(e.g.,HIPAAforhealthcaredatain

theU.S.orPCIDSSforpaymentcardsecurity).

SafetyRegulations:

EnvironmentalStandards:

InteroperabilityGuidelines:

Guidelinestoensurethesafe

Regulationsfocusingon

Ensuringproductsfrom

operationofproducts,crucial

environmentalimpact,like

differentmanufacturerscan

inindustrieslikeautomotive

RoHS(RestrictionofHazardous

worktogetherseamlessly,

(e.g.,ISO26262forautomotive

Substances)andWEEE(Waste

commonin-homeautomation

safety)andhealthcare(e.g.,

ElectricalandElectronic

(e.g.,ZigbeeorZ-Wave

FDAregulationsformedical

Equipment)intheEU,which

standards)ordatatechnology

devices).

governtheuseofcertain

substancesinelectronics.

(e.g.,USBorBluetooth).

TechnicalStandards:

Specificationsfor

productdesign,

materials,processes,andperformance.Forexample,intelecommunications,

standardslike3GPPor

IEEEdefinehowdevicesshouldcommunicateandinteroperate.

IndustryFramework

8SoftwarisationforSemiconductors

9

TheValueinSoftwarizationforSemiconductors

Thereareseveralsubstantialbenefitstotransitioningfromahardware-centricapproachtoa

software-centricapproach.Webelievetheanswersareclearnotsimpletoachievebyanymeans,

buttheNorthStarofbusinessvalueincludes:

1.EfficientandCost-Effective

DesignandProduction:

Adoptingasoftware-centricapproachstreamlinesaSemi’sbusinessmodelbydevelopingalimited

arrayofversatilebasechipscustomizedfor

variousindustriesthroughsoftware,significantlyreducingthecostandtimeinvolvedinhardwaredevelopment.

2.Quickeriterationsandamoreefficient

productionprocess,addressingthe

riskofmissingmarketdeadlines.

3.SoftwareasaRevenueGenerator:

Softwaredevelopmenttransitionsfromacostcentertoarevenuestream.Firmscanmonetizesoftwaredevelopmenteffortsbyoffering

customizablesoftwaresolutions,featureupgrades,ongoingservicesubscriptions,anddevelopinga

robustecosystemforthird-partyapplications.

4.ThePlatformEffect:

AswesayinSiliconValley,theplatformalwayswins.TheecosystemapproachofSoftwarizationfor

Semiconductorsnotonlyallowsfordirectrevenuegenerationbutalsoenhancesthevaluepropositionofmyproducts,creatinga‘platformeffect’that

attractsmoreusersanddevelopers,expanding

reachandcreatingnewrevenueopportunities.

5.FlexibilityandAdaptability:

Theabilitytoupdateandcustomizesoftware

fordifferentindustryrequirementsmeansI

canswiftlyadapttomarketchangeswithout

needingtime-consumingandexpensivehardwareredevelopment.Thisadaptabilityallowsmeto

respondrapidlytoevolvingindustryneeds.

6.SustainableandEnvironmentallyFriendly:

Thisfutureapproachalignswithglobal

sustainabilitytrendsbysignificantlyreducing

thefrequencyofnewhardwaredevelopment.

Thefocusonsoftwareupdatesandlonger-

lastinghardwarereducesmaterialuseandwaste,promotinganeco-friendlierproductionmodel.

What’sholdingtheindustryback?

AtransformationofthisscaleaffectseverypartofaSemiconductorcompany,sothechange

ishard,butthereward(ornecessity)ismassive.Typically,aSemicompanywillstartwithone

strategic,software-intensivebusinessunitandpilotalltheneededcomponentsthere.Itisa

holisticbusinesstransformation,notjustanengineeringtransformation,anditallstartswiththe

rightmindsetforleaders.

10SoftwarisationforSemiconductors

Design

Semicompaniesmuststartby

decouplinghardwareandsoftwarearchitecturesandcreating

anindependentlifecyclefor

eachlayer.Thispresentsmany

challengesina‘hardwarefirst’

mindset,butoptimizingwhat

CustomerExperience

Improvethecustomer/ecosystemexperience,enablenewfeaturesviasoftwareupgrades,andcreateperformancemanagementand

SLAs,allinanIP-securefashion.

ScaleviatheEcosystem

Buildandfertilizeanecosystemofapplicationdevelopers,toolsproviders,andenablement

softwareprovidersasyour

primaryfocustopromotethesaleandadoptionofchips.Stayaheadofthecurve,catching

thenextdisruptivetrendin

YOURecosystem.

PlatformEnablement

Deployeasy-to-usesoftwaretools

(SDKs)toconfigureandoptimize

theplatformtomeetindustry/

use-caserequirements.Makethese

toolsaccessibletotheecosystem

ofinternalandexternaldevelopers,

ISVs,andhardwarepartners.

softwarecandoisessential.

Softwareisnolongertheservantbuttheboss.

IndustryFocus

Createindustry-focusedplatformsandecosystemsbytransferring

industry-specificlogictothesoftwarelayer.(SeeIndustryFrameworksabove)

BusinessModels

Definenewbusinessmodelsto

supportcustomerjourneys(pre-to-

postsales)andopennewrevenue

streams.Assuremanagement

systemsrewardsoftwaresalesand

ecosystemdevelopmentasmuch

ormorethanchipsales.Thiscan

turnacompensationsystemonits

headanddeservesameasuredbut

determinedrollout.

Conclusion

•How?Ifimplementedwellandsoon,itcouldrevolutionizethe‘spot’semiconductorsthathavebeenplayingforalongtime

•Why?Possibilityformarketdominance

•When?Tighteropportunitieswithgeo-localstrategies(&funding),allthewaytothecustomerend.

•Sowhatareyouwaitingfor?

Tocapturetheirshareofthe$1Tsemiconductorchip