Productivity drivers for future system level integration

The extraordinary rate of progress of the semiconductor industry and the promising perspective of continued acceleration toward system level integration capabilities has promoted a rapid separation of content from semiconductor carrier. The value proposition is notably shifting from traditional semiconductor business models to models of `content within context´ value creation. Domains of context will most probably be defined around natural environments such as the home, the office, the vehicle, and the person. These environments are expected to be comfortably and invisibly connected and networked to provide innumerable types of scalable services. The value proposition of scalable services will drive the generation of new classes of embedded system solutions, which will require significantly higher silicon system integration capabilities than ever envisioned before. This argumentative loop describes powerful dynamics of a value system, which propels fast progress on all levels of a value stack, from content oriented services to carrier oriented semiconductor manufacturing. Succinct levels of the value stack can be defined as follows: IP driven services and service applications, software driven system solutions, design driven product solutions, and semiconductor process driven IC manufacturing. Each of these levels provides favorable business opportunities, with differing levels of return on investment. Content focused businesses are expected to gain higher return on investment as compared to carrier focused businesses. The interdependence of all disciplines of this value stack, however, provides a solid foundation for prosperity at all levels. Interdependence is notably the driving force for technology advancements at each level, and efficient hand-over from level to level promotes product creation with the demand of shorter time-to-market