Partnering with Chip Makers – Is it on the rise?
In rapidly evolving markets, partnerships are a cornerstone for innovation and agility. This is particularly true in the semiconductor industry, where equipment and device manufacturers are increasingly collaborating with chip makers, and chip makers even join forces with each other.
Such alliances are not just a trend but a strategic imperative when dealing-with ever-shrinking development windows and increased competitive pressure. They are driven by the need to harness new possibilities in technology, and to integrate these advancements into new products, faster than ever before.
Enduring role of universities in research
Businesses with visionary product ideas, invariably need new technologies to fulfil their vision and they can’t invent all of those technologies themselves. So, they often sponsor universities to do research, and collaborate with chip makers where they can.
Universities have long been involved in industry research, with professors and PhD students exploring scientific and technological advancements under company-funded grants, often focusing on future applications, in contrast to the immediate, application-driven research typically conducted in corporate labs.
Chip makers need use cases and a market
Chip vendors can’t go around building technology in a vacuum, without a use case, and market justification. They need use cases and deployment scenarios from the equipment and device vendors to understand the full scope of requirements, and to know whether it’s a market they want to play in and shape.
Thus, partnerships are born to jointly figure-out what is needed by the market and what is possible. These collaborations not only foster technological advancements but also enable companies to stay ahead of the curve in an ever-changing landscape.
Signals of opportunities and threats
To avoid being caught off-guard in a competitive market, CTOs and Engineering Managers at network equipment, IoT device, and Smart Home device companies, should pay attention to these partnerships, and the new types of products that may spring forth from them. They can signal both emerging opportunities and markets under threat, depending on your own roadmap.
The Rise of Strategic Partnerships
The semiconductor industry has witnessed quite a flurry of partnership announcements in 2023, aimed at accelerating product time to market and exploring new technological frontiers. While these partnerships are not a new phenomenon, they may be on the rise as the industry faces some game-changing opportunities presented by AI, ML, IoT, and Edge Computing.
Out of dozens of on-going partnerships between semiconductor firms and industry, here is a small sample of recent examples:
Qualcomm and Comcast: Pioneering DOCSIS 4.0
A notable partnership in the broadband internet realm is that between Qualcomm and Comcast. This collaboration focuses on the development and deployment of DOCSIS 4.0 technology, which is set to revolutionize broadband speeds and capacity.
DOCSIS 4.0, enables symmetric multi-gigabit speeds and enhances network efficiency. Qualcomm’s expertise in chipmaking, combined with Comcast’s vast network infrastructure, aims to deliver unprecedented broadband speeds to millions of homes and businesses.
Meta and MediaTek: Advancing On-Device AI
Another groundbreaking partnership is between Meta and MediaTek. This alliance is centered around integrating Meta’s Llama 2, an advanced open-source Large Language Model (LLM), with MediaTek’s cutting-edge Application Processing Units (APUs) and NeuroPilot AI Platform.
The objective is to enable generative AI capabilities on devices at the edge instead of in the cloud, where most AI processing currently occurs. This will be crucial for developing a comprehensive intelligent edge computing ecosystem. This partnership is expected to redefine user experiences across smartphones, IoT, vehicles, smart homes, and various edge devices.
Meta and MediaTek: SoC for Smart Glasses AR
Separately Meta Reality Labs has entered into a partnership with MediaTec to develop an SoC for their first pair of smart AR glasses (another project – slated for 2027 release). That’s despite already using Qualcomm Snapdragon XR2 Gen 2 in Quest 3, which is Meta’s highly successful headset.
Apparently, Meta tried to develop their own XR SoCs without much success, and have gone back to the Semiconductor experts. This move expands their options and reduces their reliance on Qualcomm for AR and VR chips. Competition is good, it will propel the market.
Broadcom and Comcast: Unified Silicon for DOCSIS 4.0
Broadcom’s collaboration with Comcast is another example of strategic partnering, where they have developed a “unified” family of silicon that supports both Full Duplex (FDX) and Extended Spectrum DOCSIS (ESD) specifications for DOCSIS 4.0-powered modems, nodes, and amplifiers.
This partnership is not only about delivering faster Internet speeds but also about embedding AI and ML technologies to enhance network monitoring and issue resolution.
Texas Instruments and Bosch: Innovative sensor technologies
This collaboration enables the integration of TI’s advanced sensor solutions into Bosch’s systems, enhancing performance and reliability. For example: Bosch’s advanced driver assistance systems (ADAS), incorporating TI’s sensor technologies enhances vehicle safety, with features such as adaptive cruise control, lane-keeping assist, and collision avoidance.
Intel’s Ecosystem Collaborations
Intel’s approach to ecosystem collaborations is worth mentioning. The company has announced strategic collaborations with industry leaders like Altiostar, Dell, Deutsche Telecom, and others to advance network infrastructure and accelerate edge solutions.
Intel’s rich heritage in technology transitions positions it uniquely to foster such collaborations, which are essential for driving innovation in 5G network infrastructure.
The Future of Technological Partnerships
The collaboration between different sectors – from IoT and Edge Computing to chip manufacturing – is a crucial factor in driving innovation and meeting the evolving demands of technology users and industries. By combining their strengths, companies can explore new frontiers in any technology, and integrate these advancements into new solutions. Looking ahead, the trend of strategic partnerships could well expand, given the rapid advancements in AI and the increasing demand for more efficient, powerful, and devices.
Supply chain independence
Meanwhile, following supply chain issues during COVID, that still plague many industries to this day, US initiatives like CHIPS for America and the National Advanced Packaging Manufacturing Program will also encourage innovation and investment in onshore packaging capabilities.
The CHIPS and Science Act of 2022 underscores the importance of revitalizing US domestic electronics manufacturing and increasing supply chain resiliency. By fostering partnerships, companies can strengthen their competitive position and respond more robustly to market demands and geopolitical challenges.
Summary
Having access to right technology for one’s next innovation is one thing. Having the resources to implement it quite another. That where a different type of partnering is needed – partnering between equipment and device manufacturers and embedded software companies who have the embedded engineering expertise and resources to build it.
CTOs and Engineering Managers at network equipment and device companies, are under immense pressure to deliver innovative products quickly. It is relentless and unforgiving. By leveraging the expertise of specialists in edge computing and intelligent devices, businesses can shrink product development cycles without expanding their internal resources.
For companies looking to edge ahead, working with embedded systems experts like embedUR is key to accelerating product time to market, and managing limited resources across multiple product lines, and between new product R&D and sustaining initiatives.
