Semiconductor companies can keep pace with Moore’s Law. The question is whether they should. Semiconductor companies have achieved profitable growth by doubling the number of transistors on integrated circuits every two years. Today, costs associated with creating ultra-dense transistors are rising exponentially. At the same time, sales prices are flat—or declining. In this high-cost/low-return environment, it’s harder for semiconductor companies to justify using Moore’s Law as a tool for sustained competitiveness. Winners will no longer pursue innovations simply because they can. They will pursue opportunities that are clearly aligned to a viable business strategy, as well as their growth and profitability objectives.

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2. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Semiconductor companies have
stayed competitive and profitable by
following Moore’s Law, doubling the
number of transistors in an integrated
circuit roughly every two years.
FOR 50
YEARS

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The benefits associated with advanced
chip development no longer outweigh
the costs. Several factors are forcing
semiconductor companies to rethink
where and whether to invest.
TODAY, THE
ENVIRONMENT
IS CHANGING

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Some customers, like smart phone manufacturers, will want chips
with process sizes of 10 nanometers or less. But many customers
don’t need to transition to these ultra-dense nodes to stay
competitive.
TECHNOLOGY
VS SUPPLY

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Historically, semiconductor companies justified high initial design
investments because they would recoup those costs over time. That
phenomenon is no longer occurring.
GROWTH
VS PROFITABILITY

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As companies pack more complex transistors into the same amount
of space, the potential for quality problems increases dramatically.
The cost of detecting and remediating these issues has soared.
QUALITY
VS COST

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A diverse product portfolio of both traditional
and advanced node technologies is likely the
best strategy for achieving growth and
profitability.
COMPANIESMUST BALANCETHE RISKS AND
OPPORTUNITIES THAT MOORE’SLAW PRESENTS BY
ADOPTING THREE PRINCIPLES:
1. CHOOSE
CAREFULLY
FINDING THE
BALANCE

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With advanced design costs steadily rising,
companies must generate maximum value from
existing investments. That means producing
both older nodes for existing applications and
new applications for older nodes.
2. LEVERAGE
DESIGN CYCLES
FINDING THE
BALANCE

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Companies should leverage advanced data
analytics to detect quality issues earlier in the
product lifecycle and maximize savings.
3. BE MORE
VIGILANT
FINDING THE
BALANCE

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There is no doubt that semiconductor
companies CAN continue to keep pace
with Moore’s Law.
The question is whether they SHOULD.
A NEW RACE

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Learn how semiconductor companies can achieve competitive
agility in today’s environment with our full report:
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