The Circuit Episode 2: The Business of Going Vertical
Dec 28, 2022
Ben Bajarin and Jay Goldberg dive into the rising trend of tech companies designing their own silicon. They explore how verticalization and standardization shifts impact competition and advantage. The duo discusses the slowdown of Moore's Law, highlighting the importance of custom chips and partnerships. They examine geopolitical influences on silicon ownership and the implications for the automotive industry. This insightful conversation reveals why owning silicon is crucial for controlling product roadmaps and customer relations.
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Moore's Law Slowdown Drives Customization
- Slowing Moore's Law pushes companies toward custom or semi-custom chips for performance gains.
- Specialized ASICs and accelerators become a primary lever as process-node progress decelerates.
Offer Semi-Custom Services To Retain Clients
- Semiconductor firms should offer semi-custom design services to keep big customers engaged.
- Bundle those services with other products to monetize relationships rather than compete head-on.
Prioritize Chips That Affect User Experience
- Focus in-house silicon efforts on components that materially change user experience.
- Avoid designing commodity microcontrollers and instead prioritize higher-ASP parts tied to differentiation.