chip design presentation

7/23/2019 Chip Design Presentation

1/23

Short Background on the

Semiconductor Industry

The leading industry in the IT revolution.

Has significant influence on global economic cycles

Relevant to almost all sectors of IT.

Annual revenues of more then $!" billion# ith average

year to year groth of %&.


2/23

The 'abless (odel

only chi) design.

*o foundry.

+sually more focus then Integrated ,evice manufactures-I,(.

need to sale less to become )rofit and as a result are more

fle/ible and can address niche markets as ell as main

segments.


3/23

The 'abless (odel


4/23

'ablees History

began becoming relevant in the %"0s.

ra)id groth in 1"0s

Today# the fabless com)anies total annual revenuesare more then $23 million hich re)resent !& of

semiconductor annual revenues.

for the last decade fabless groth rates ere higher

then the semiconductor groth rates and it is e/)ectedthat in 2"" fabless annual revenues ill re)resent

about !"& of the semiconductors revenues.


5/23

'abless Statistics

Market Sector/Application Percentage

4ired 5ommunication 3&4ireless 5ommunication 23&

65 6eri)herals %&

5onsumer 7&

65 "&

Industrial (edical 2&

,efense Industries 2&

Automotives &

Fabless Companies Primary Business by Market Sector


6/23

'abless Statistics

Technology Area Percentage

Analog8,igital 3%&

9ogic 2&

(icro)rocessors :&

,S6 %&

(emory %&

Fabless Companies Primary Business by technology


7/23

'abless Statistics

Geographic area of Fablesscompanies Percentage of total revenues/umber of companies

*orth America :7& 8 7!!

;uro)e %& 8 !!

Asia !& 8 %!Israel 7& 8 3"

Fabless Companies Geographic !istribution


8/23

'abless Statistics

Company " location Percentage

TS(5 < Taian 7&

+(5 < Taian 27&

5hartered semi < +S "&

American (icrosystems < +S %&

=ther < orldide :&

Geographic #istribution of Foun!ries serving Fabless Companies


9/23

Background to the Israeli

Semiconductor Industry>ery strong microelectronic academic de)artments from early ?"0s.

many Israeli engineers emigrated# in the ?"0s# %"0s and :"0s to the silicon

>alley to ork in semiconductor com)anies.

'irst multinational semiconductor com)anies o)en Israeli R@, centers in

the late ?"0s and early %"0s -(otorola ?7# IB( %2 and Intel %7.

Israeli engineers from silicon valley return to Israel in the :"0s and 1"0s.

In 1:7# first multinational semiconductor com)any o)en a foundry in

Israel Intel0s fab in erusalem.

structure changes in the Israeli economy restructure of the military

industries# the stability )rogram# liberaliCation and globaliCation.


10/23

Background to the Israeli 'abless

IndustrySmall country for a semiconductor industry fabless com)anies are

smaller com)anies and have more floatability in changing technology sector.

,istance from the market it is easier to e/)ort design then )roducts.

4eak marketing abilities and eak in selling to the final costumer

selling to the semiconductor com)anies or selling through =;(s.

Strong R@, abilities the most im)ortant factor is R@,.

Shortage of ca)ital and eak ca)ital markets less ca)ital needed tofablees com)anies and less risk.

+nstable area fabless com)anies have more floatability in changing

location.


11/23

Israeli Statistics

chi) design and semiconductor is the most im)ortant sector in the Israeli

Hiisiontech as

acDuired by Broadcom for $%""(.

In 111# ,S65 as acDuired by Intel for $.?B and 9ibit as acDuired by

TI for $7?!(.Today# there are at least 3 semiconductor startu)s among the to) "

)rivate startu) in Israel -Saifun# (obilian# ;Cchi).


12/23

5ase Studies the Sam)le

! startu) com)anies - chi) design com)anies and 7 related industries.

'airly re)resentative ith small biases to more successful startu)s.

Technologies a))lying to % different categories.

The com)anies ere established in 7 )hases of the Israeli >5 industry.

large difference in success -failures to tremendous successes.

'e geogra)hic areas.


13/23

(ethodologyBackground.

Initial (a))ing of the Israeli chi) design com)anies.

,ee) research on ! chi) design startu) com)anies.

Intervies ith most of these startu) com)anies.

AnalyCing the sam)le results.

Building an Initial Eroth (odel.

Initial )olicy im)lications.

+nderstanding the fundamentals of Italy chi) design sector and adFustingthe model to Italy.

Increasing the sam)le < checking and e/)anding the groth model.

6olicy Im)lications.


14/23

;ntre)reneur Background

>ery strong educational background -" 6h,# 3 (.Sc ;; and 2 B.Sc ;;.

Strong 4ork e/)erience background -% (*;# ! S+# 3 I,'# 7 Academia.

Strong managerial e/)erience -% manager )ositions# 2 entre)reneurs.

Strong core additional team -! very strong# ! strong.

Strong R@, )osition e/)erience -! R@, )ositions.


15/23

Trigger and 'oundation

(ost startu)s ere lead by the scientists and the technology develo)er

-2 startu)s.

4e believe that half of the startu) ould have established even if the

market condition ere less attractive -driven by very strong technology.

4e found fe kind of triggers -develo)ment in academia# develo)ment

during )revious orks and )roblem solving.

At least % startu)s ere triggered by the *asdaD good conditions.

To startu)s ere in technology incubators.

To startu) ere s)in


16/23

Business (odel

The technology innovationG ! s)ecific )roducts# ? )latform technology

and 7 radical technology.

Becoming more focus in areas of develo)mentG ? more focus# ? no

change and 3 broadened.

(arketing modelG ! direct sales# ? =;(s and : strategic and marketing

)artnershi)s.

Eroth 6rofilesG 2 I6= and (@A# 2 I6=# 2 fast (@A# (@A as last

rescue and : not clear yet.


17/23

=)timal Eroth 6rofiles

Path $

Strong entre)reneur background

Strong technology in a significant segment

I6=

=;( or8and Strategic agreements

I6=

(@A

'ast (@A

Path %

Path &

Path '

Additional strong initial team


18/23

;/)lanation of the (odel

6ath G com)anies ith all characteristics of o)timal )rofile of groth# hichunderent successful I6= and ere later acDuired by a large multinational com)any

-2 com)anies in our sam)le.

6ath 2G com)anies ith all characteristics of o)timal )rofile of groth# hich had

gone trough a successful I6= -2 com)anies in our sam)le.

6ath 3G com)anies ith all characteristics of o)timal )rofile of groth# hich ere

acDuired by a large multinational com)any in the beginning of their marketing and

strategy alliances efforts - com)any in our sam)le.

6ath 7G com)anies that seems to have all characteristics of o)timal )rofile of groth

but are only in an initial )hase of marketing and strategic agreements -2

com)anies in our sam)le.


19/23

Path$->ery Successful 5om)anies

com)anies ith founders ith very strong background and e/)erience and

very strong technology. These factors often leverage the com)any into

strong =;( and strategic agreements ith leading multinational

com)anies. The com)anies0 initial success enables them to go through a

successful I6=# hich hel)s them kee) groing. 9ater on# hen thetechnology ga) closed and the market consolidation in their segment began#

they ere attractive enough to be acDuired be one of the com)etitors for a

significant amount. In Israel# e identified 2 com)anies# hich have gone

through )ath.


20/23

Path'-Tremendous Success or

(oderate Success

)ath2 is divided to 2 ty)es of com)anies. Ty)e -tremendous success

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