Enterprises want to succeed in the future, must have two ability - should not only master the technology, and to understand business. Who fail to realize this change, or have realized this change but didn't respond, or have learned this kind of change but failed to adapt to change quickly the company is bound to be eliminated...
And reached the crossroads of the development of semiconductor industry: growth slowed, rising cost of innovation, and a lot of disruptive technologies and business models will affect the whole industry. Over the past 30 years, the semiconductor industry has been change, including the global business model, into the global market, provide faster (and smaller) connecting device, and breeding new engineering personnel, marketing personnel and sales personnel. ADI is a multinational technology companies, the main production simulation products, mixed signal and digital signal processing equipment. ADI company President and chief executive Vincent Roche said: "the enterprises want to succeed in the future, you must have two kinds of capacity - should not only master the technology, but also to understand the business. Those who fail to realize this change, or have realized this change but didn't respond, or have learned this kind of change but failed to adapt to change quickly the company is bound to be eliminated."
Q: (you are in the ADI has undergone many major changes. In your opinion, the semiconductor industry and ADI company in the next five years or ten years will see how to change?
A: (in my opinion, all of semiconductor companies face two long-standing problems: one is how to manage an increasingly complex products, processes, and business relationship; The second is how to deal with the pace of innovation. In the next few years, these problems will still be our semiconductor equipment suppliers, is also two big issues facing our clients.
ADI company development is reflected in many aspects of the development of the semiconductor industry. Before we have a history of nearly 50 years, 25 years focus on PC hardware, including IBM mainframes and industry measurement and control technology. Later in the past 25 years, we ushered in the age of digital communication and the consumers' age, we firmly grasp the changes and generate an income from $300 million to $3 billion.
We are currently experiencing a new round of development, and maintain a good development momentum, the integration of the many products and technology to provide clients with better service, at the same time deal with the development of complex problems. This is similar to the Cambrian explosion. Industrial, medical, automotive and energy industry with the popularization of sensing technology, processing technology and communication technology to realize profits soared. At the same time, our customers are facing hardware engineer, especially simulation engineer a big loss, we hope that by providing a more comprehensive solution to meet customer demand. A node in the emerging ecosystem, we need to understand how to interact with all other nodes in the system of enterprise conduct and cooperation, strive for.
Q: (would you please comment on the Internet of things and people to continue to focus on big data? These trends mean for customer and semiconductor equipment suppliers?
A: (in my opinion, the term Internet of things has been abused. Having said that, given the growing popularity of the communication technology and computer technology, economical and practical, and many of our customers are beginning to realize that, in addition to the manufacturing base of industrial machinery, automobile and other hardware, network equipment, they have plenty of other development way. Their products can be connected to the cloud, by collecting a large number of useful data to redesign the business model, with the analysis of data, looking for a new source of income. These trends will affect industry development, ADI will firmly grasp the opportunity, to fully demonstrate our professional knowledge in connect reality and the digital world. This and other semiconductor equipment suppliers for us is a great development opportunity, because we can production and sales of equipment for the customer to collect information and facilitate the analysis of the complex, and so as to stand out in the industry.
Q: (many semiconductor equipment suppliers are with industry leading equipment and success. And now we hear these companies more software and system services. What does it mean to this trend?
A: (compared with other industries, the development of semiconductor equipment suppliers total rising, was increasingly less returns. We are constantly expanding the scope of our services, for example, new services, and improve the software and algorithm of integrated circuit and the function of the system services. As I mentioned earlier, we provide customers are looking for the hardware engineering services and support capabilities. However, we also explore how to use these basic business innovation and customer expectations we free to provide additional service revenue for the company.
Semiconductor equipment is still the basis of information and communications technology innovation. To sum up, no matter our customers hope that through the cloud or through the precision analysis of data on what operations, they need to be based on the silicon wafer, this point for the incremental innovation and radical innovation. Now, for example, most of the car's performance differences are caused by semiconductor equipment. In the past for a long time, just do chip, chip companies but now? We added the workflow of software development and systems engineering two key areas of business, we need around these business requirements to make corresponding adjustment. ADI company has for the system and made clear the development blueprint of software development, the work has become an important part of company innovation.
Q: (research and development of semiconductor companies are now facing the rising cost of higher risk and return. Company leaders how to successfully deal with the challenges and continue to create new?
A: (in ADI, we firmly believe that "the remarkable innovation bring great results. Our r&d spending accounts for nearly 20% of revenue, as long as the company's performance can be rising, we believe that this ratio is appropriate. We need to find us through thoughtful to meet more risk challenge, need careful treatment field, working closely with customers, and in the management of increasingly complex products and services to get more generous returns. Over the years, we introduce the best innovation products is through cooperation with the customers, namely using the best technology research and development by our engineers to solve customer's sternest challenges. This let us always maintain leading position in the market. We always take the prudent attitude, commitment to customer as the center and the pursuit of balance both technological progress.
In the process of taking the above approach, we need to seriously consider the amount of r&d company and the company inside and outside the conception. Company looking for their own development at the same time, still need and academic institutions, and other research institutions and industry establish a good external contact, constantly creating new technology. In product development early and late scheme are required to adhere to the practice.
Q: (semiconductor equipment suppliers increasingly depends on the development and competition advantage through mergers. But after the merger integration work is often difficult. According to your experience, what is the secret of successful merger?
A: (semiconductor industry is in the buying cycle, as long as capital is still very cheap, and you will see companies constantly seeking new acquisitions. For a successful m&a, in fact, there is no secret, but you must be clear why companies seeking mergers and acquisitions. Is it just in order to cope with those too active investor? Truly successful merger or acquisition should be able to make the company more popular with the customers in five years, at the same time bring more innovative products for the company, to expand the company's ability. In the long term, a merger or acquisition to improve the market competitiveness of the company.
Company leaders must be careful when choosing the target company. For example, if your company is very pay attention to innovation, so you need to focus on the enterprise culture: the enterprise culture of the target company are consistent with your company's enterprise culture? Integration of new technology and new ability the fastest how long will it take? This is our most recently in the acquisition of the Hittite Microwave an important factor to consider. At present, we have many opportunities, but social resources are limited, through mergers and acquisitions can expand the scale of enterprises, but must guarantee that in the case of conditional.
