ADI's transformation into a solutions provider

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ADI's transformation into a solutions provider [Copy link]

Taking the opportunity of attending the ceremony of the China Semiconductor Industry Association (CSIA) joining the World Semiconductor Council (WSC), Ray Stata, a veteran in the semiconductor industry, co-founder and chairman of the board of directors of Analog Devices, met with the media recently to explain his views on the latest trends in the semiconductor industry and how Analog Devices will respond.

Ray Stata believes that with the increasingly fierce competition in the global electronics manufacturing industry, an important development trend is that electronics manufacturers are increasingly requiring chip suppliers to provide complete solutions. The market is now under great pressure on prices. The cost of research and development of electronics manufacturers themselves is constantly rising, and the complexity of products is constantly increasing, but costs must still be reduced, which forces system manufacturers to push more research and development work to chip suppliers. Ray Stata said that in this new situation, chip suppliers must transform from a product-centric strategy to a customer-centric strategy.

A product-centric strategy means that a product is sold to many customers, while a customer-centric strategy means that there are many products to provide for each customer. From another perspective, product-centric means paying more attention to technology; while customer-centric means shifting to customer and market demand-centric.


Ray Stata, co-founder and chairman of the board of directors of Analog Devices

, said that Analog Devices used to mainly provide standard products, but now it focuses more on providing complete solutions. This change is not only a challenge for Analog Devices, but also a challenge for the entire semiconductor industry. In order to complete this transformation, Analog Devices needs to change its organizational structure and establish a brand-new business model. He said: "Changing people's ideas is the most difficult, especially from the original idea of selling components to make profits to now providing a complete set of solutions. How to find a balance point is a very big challenge."

In this way, Analog Devices needs system experts and a more thorough understanding of customer requirements. Especially for the high-volume consumer market, some complete solutions are needed to enable these products to be launched faster. At the same time, lower costs must be provided. Providing system solutions means having a variety of different technologies and being able to integrate them.

Analog Devices has a huge advantage in analog signal processing, and also has strong technical capabilities in digital signal processing, wireless technology and power management. In order to better provide solutions, Analog Devices will focus on some applications. Not long ago, Analog Devices acquired a Korean company (Integrant Technologies) that provides DMB tuners, thereby entering the promising mobile TV market. In terms of mobile phones, ADI has just acquired TTP's software solutions. Stata said that through these measures, ADI will be able to provide more complete solutions.

In China, ADI's development strategy is to increase local design and technical support in China. The focus is on the cultivation of human resources, including technology research and development, technical support and technical management. ADI also hopes to rely on Chinese R&D personnel to define some new products.

Ray Stata finally said: "China has a huge impact on the world. ADI is a multinational company, not just an American company. We also have investments in China, so we are also a semiconductor supplier in China. We also hope to make our own contribution to China's semiconductor market." (Reporter Xiaosong)