The Consumer Electronics Boom: How Semiconductor and Consumer Electronics Companies are Improving Cost, Time-to-Market and Product Quality

The continued success of the consumer electronics (CE) industry is highly dependent on the sustained synchronization and improved time-to-market collaboration of its relationship. A study between GSA, Consumer Electronics Association and KPMG LLP entitled "The Consumer Electronics Boom: Improving Cost, Time-to-Market and Product Quality" was conducted to determine areas of efficiency and effectiveness involved in developing new consumer electronics products. The current trend of CE producers designing and developing their own products is considerably faster than when integrated circuit (IC) suppliers design the necessary chips. A major obstacle is the mounting dependence on CE sales as demand increases for semiconductor firms to design, manufacture and distribute products to the market faster.

This report explores how semiconductor companies and consumer electronics original equipment manufacturers (OEMs) can better partner to improve time-to-market and product quality. It also provides valuable insight to both CE and IC OEMs in developing new consumer products, where time-to-market, product differentiation, quality and product profitability are tantamount.

Report Highlights

• Time-to-market and costs are the most critical issues
• Consumer Electronics (CE) companies want earlier IC supplier involvement
• IC suppliers must develop products faster to compete with the demand
• A major IC suppliers’ challenge is that CE design methodology is not standardized
• Two-thirds of CE respondents said IC content is 20% of their average product cost
• More than 50% of CE respondents see IC content growing in the products over the next five years

Download the Current Report - Download (PDF, 2.3 MB)

EDN featured an article regarding the survey and subsequent report. Download the article. (PDF, 40.8 KB)

Table of Contents

I. Executive Summary

The Growth in Demand for Consumer Electronics Products
The Challenge
Conclusion

II. Survey Highlights

Objectives
Demographics

III. Key Findings

IV. Survey Results

Product Costs
Design Control
Time-to-Market and Cost
CE Companies Want Earlier IC Supplier Involvement
IC Suppliers Must Develop Products Faster to Compete
IC Supplier' Challenges: CE Design Metholodolgy Not Standardized

V. About KPMG, GSA, CEA

About the Survey

• The survey was Web-based and conducted in October 2007 and held open through December 21, 2007
• More than 350 executives – ranging from C-level to engineers – were surveyed in the IC and CE industries, which ranged from companies producing components for game systems, telephones, cameras, automotive telematics, storage devices, computers, home audio systems, and portable audio and video equipment

Archived Reports

The reports below were based on a survey GSA conducted in Q4 2006 and Q1 2007. The objective was to:

• Develop a core set of key success indicators (KSIs), or “Dashboard Metrics”
• Highlight the innovative practices
• Demonstrate strong productivity measures of public semiconductor IC companies

GSA used a tops-down approach, looking at the impact of design activities in 3 areas:

1.Revenue
2.Profit
3.Time-to-Market

• Q1 2007 - Design Innovation & Productivity
• Q4 2006 - Design Innovation & Productivity

Comments or Questions?

Contact Lisa Tafoya at 972-866-7579 x116 for any questions, comments or to participate in the annual survey.

Podcasts

• Tech 01 (MP3, 4.21 MB)
• Tech 02 (MP3, 4.86 MB)
• Tech 03 (MP3, 4.31 MB)
• Tech 04 (MP3, 4.23 MB)