McKinsey & Company and the Global Semiconductor Alliance (GSA) recently collaborated to understand the implications of the Internet of Things (IOT) for the semiconductor industry and the economy as a whole. This effort was overseen by a steering committee of 11 senior executives from GSA member companies and McKinsey. It involved the following methods:
Interviewing 30 GSA members who were senior executives at semiconductor companies or at companies in adjacent industries that are part of the IOT ecosystem, such as network equipment and industrial automation
Surveying 229 semiconductor executives at GSA member companies
Assembling a fact base on the IOT, focusing on issues relevant to semiconductor companies
Among other insights, we found that semiconductor companies are well positioned to help the IOT gain momentum, despite the obstacles ahead, provided that they embrace innovation and rethink their traditional business model.