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The semiconductor industry is in a rush to restructure

Jessie March 01, 2024

Over the past year, the semiconductor industry has undergone earth-shaking changes, in order to adapt to external changes, many companies choose to change the policy or play, change the manager, restructuring... These incidents have occurred frequently in recent times.

TSMC changes succession

For the company, what problem is the most difficult to choose, that must be the succession problem, not to mention the helm of a giant ship.

On February 29, after TSMC Chairman Liu Deyin announced his retirement, the board of directors will also be reshuffled in June, with current President Wei Che-jia taking over as chairman and president. This means that Wei Zhe Jia will become the second person to participate in the company's decision-making policy and command the armed forces after the founder of Chang.

Before Wei Zhe Jia takes the helm, TSMC's recent organization will be significantly adjusted, and there will be a series of new personnel layout. TSMC's first round of organizational adjustments will be around the operations and research and development organizations that were regarded as the two core departments and cooperated well in the past, and will be divided into two senior deputy general managers.

Specific adjustments include: At present, the senior vice general manager Qin Yongpei is responsible for the product development of all the operating organizations of TSMC, and the business in the United States will be managed by the senior vice general manager of research and development Mi Yujie; Lin Jinkun, senior deputy general manager of information technology and materials and risk management, will share some of the materials and IT business with Hou Yongqing, senior deputy general manager of TSMC's Eurasian business and technology research. As for Fong Shuhua, the senior Deputy General Manager in charge of legal Affairs, and Wong Yan Chiu, the senior Deputy General Manager in charge of finance, who were just promoted this month, their roles remain unchanged and they remain as Legal Officer and Financial Officer respectively.

From this point of view, TSMC intends to deploy Mi Yujie and Hou Yongqing, two senior vice presidents, to increase their experience in different fields, and form the third generation of succession echelons (the first generation is Chang Zhongmou, and the second generation is Liu Deyin and Wei Zhejia).

Industry speculation, TSMC this change or because of the United States factory construction is not good, of course, this final conclusion and no evidence, but it is foreseeable that TSMC action has just begun, the future needs to face there must be a lot of problems.

St began to streamline its structure

Streamlining the structure is the main theme of large companies in recent years, such as ON Beauty after streamlining the structure of SiC growth. Recently, the action of ST has attracted the attention of the industry.

On January 11, Italia announced a new corporate structure, which will transition from three product divisions to two (APMS and MDRF), and Marco Monti, former President of Italia's Automotive and Discrete Products Group, will also leave the company. The two new product groups will be:

Analog, Power & Discrete, MEMS and Sensors (APMS), led by Marco Cassis, ST President and Executive Committee member; The product group will include all ST analog products, including automotive smart power solutions; All ST power and discrete product lines, including silicon carbide products; MEMS and sensors. APMS will include two reportable segments: Analog Products, MEMS, and Sensors (AM&S); Power and Discrete products (P&D).

Microcontrollers, Digital ics and Radio Frequency Products (MDRF), led by ST President and Executive Committee member Remi El-Ouazzane. The product group will include all ST digital ics and microcontrollers, including automotive microcontrollers; Rf, ADAS, Infotainment IC. The MDRF will consist of two reportable segments: microcontrollers (MCUS); Digital ics and Radio frequency products (D&RF).

Jean-Marc Chery, President and CEO of Italy and France, said the organizational changes are in line with ST's commitment to accelerate time to market, strengthen product development innovation and improve operational efficiency.

In addition, ST said that to complement the existing sales and marketing organization, a new applied marketing organization will be implemented in all ST regions, which will provide ST customers with end-to-end system solutions based on the company's product and technology portfolio.

The application marketing organization will cover the following four end markets: Automotive, Industrial Power and Energy, industrial automation, Internet of Things and Artificial Intelligence, personal electronics, communications equipment and computer peripherals. Jerome Roux, President of ST and member of the Executive Committee, will lead the organization.

The adjustment of the organizational structure is a reflection of Italy and France's active response to market changes and a strategic deployment for future development. By integrating resources and enhancing synergies, Italy and France are expected to remain competitive in the fierce market competition and achieve more sustainable development.

Infineon's biggest restructuring in recent years

The company to be restructured is not only stmicroelectronics, Infineon's restructuring news has also triggered a large-scale discussion in the industry. Up to 4,000 employees will be offered new jobs in Infineon's biggest restructuring in recent years.

On February 28, Infineon announced that it is further strengthening its sales organization. As of March 1, Infineon's sales team will be organized and reorganized around three customer-focused business areas: "Automotive", "Industrial and Infrastructure" and "Consumer, Computing and Communications".

Among them, the distributor and Electronic Manufacturing Services Management (DEM) sales organization will continue to be responsible for the distributor and electronic Manufacturing Services (EMS) area. These new organizational structures will be deployed globally while optimizing regional layouts.

The new organizational structure will focus on the application needs of customers, further leveraging the potential of Infineon's comprehensive and diversified product portfolio. These new organizational structures will be deployed globally while optimizing regional layouts.

According to Infineon, the concise approach to restructuring will make it easier for customers to access the complete product portfolio and to meet their specific needs by offering complementary products from different business units. In addition, the restructuring will reduce the number of interfaces for Infineon's customers, helping to reduce time to market for research and development projects supported by Infineon semiconductors and solutions.

Andreas Urschitz, Chief Marketing Officer at Infineon Technologies, said: "Driven by the speed of innovation and faster time to market, customer expectations have evolved rapidly. By simplifying the customer interface, Infineon brings relevant product and application expertise to the client side and is ideally placed to help customers succeed."

All in all, the industry is pursuing a more concise architecture, and this adjustment has led observers to further increase their expectations for the future of Infineon.

Infineon aims to double its turnover to €30 billion by 2030. The restructured sales team will also contribute.

Intel is at a fork in the road

Intel is gradually spinning off its business and going public independently, a decision that can be compared to the "1985 Intel decision to exit the storage market and focus on CPU computing chips" event, it can be said that Intel is taking a big gamble.

One important spin-off is its contract manufacturing business. In June last year, Intel announced an organizational restructuring, and its manufacturing operations (including the existing IDM manufacturing and wafer foundry business (IFS)) will be independent and self-financing in the future.

In the new "in-house foundries" model, Intel's product business unit will work with the company's manufacturing business group in a similar way to Fabless Semiconductor companies (Fabless) and external foundries.

Intel chose to split the foundry division, the biggest reason is that this model can improve business efficiency and reduce manufacturing costs.

Another important split is the FPGA business. On October 4 last year, Intel officially announced that it would spin off its Programmable Solutions division (PSG) to operate as an independent business from January 1, 2024, and plans to IPO for PSG in the next two to three years to accelerate the growth of its business.

In fact, Mobileye's successful launch opened Intel's mind at once. In the future, maybe we can see the "four Intels".

Bosch 100 years of big adjustment

Automotive chip industry to see who? The key is Bosch, which started the year with its biggest structural change in 138 years.

In January 2021, Bosch established the XC Division to integrate the electronics and software businesses of the company's driver assistance, autonomous driving, automotive multimedia, powertrain and body electronics systems divisions. In 2023, in response to the transformation trend of automotive engineering in the software era, Bosch reorganized the Automotive and Intelligent Transportation Technology business and officially changed its name to "Bosch Intelligent Transportation Business" on January 1, 2024.

Bosch expects the restructured automotive segment to grow by an average of about 6 percent per year and achieve global sales of more than 80 billion euros by 2029.

For Bosch, from oil cars to trams to smart cars, the world has changed dramatically. Now, this century-old store is also pursuing change, seeking to adapt to external changes.

Apple's failures led to a restructuring

For Apple, it has been seeking to expand its ecology and step into more industries, but the dream is always far from reality, because of the failure of research and development, and Apple's structure is also ushered in restructuring.

In December last year, Apple has entered the stage of restructuring the development department and engineers who have continued to invest in their own 5G modem over the past few years, in other words, Apple's self-developed 5G modem plan has gone bankrupt. At that time, the news came out that the structure was about to be reorganized.

Then, in the past few days, Apple has failed to build a car. In fact, back in March 2022, Apple analyst Ming-d Kuo said Apple's car team had been "disbanded for some time" and would be in the next three to six months This is not, Apple now announced to enter the field of AI.

It is foreseeable that the restructured Apple will continue to step into the field of AI and pursue the goal of AI mobile phones.

Sum up

Keeping up with The Times is the most important thing for a company. Today's semiconductor industry, cycle, geography, inventory, economic prosperity and other factors are implicated in their own development and performance. The most effective way is to streamline your business, let yourself focus on a few areas, so that you can continuously enhance their competitiveness, in a cruel market to live more moist.

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