Market Intelligence Solution Helped a Semiconductor Company Realize Savings of Over $4.3 Million
US Semiconductor Industry Outlook The US semiconductor industry is one of the most flourishing sectors. However, this does not mean that this sector is free of challenges. In recent years, semiconductor manufacturing companies in USA have been exposed to several predicaments including economic recession, declining labor pool, security threats, and growing competition from new market [...]
US Semiconductor Industry Outlook
The US semiconductor industry is one of the most flourishing sectors. However, this does not mean that this sector is free of challenges. In recent years, semiconductor manufacturing companies in USA have been exposed to several predicaments including economic recession, declining labor pool, security threats, and growing competition from new market entrants. Despite this, semiconductor market experts believe that there is ample scope of improvement in this sector. Therefore, for companies in the semiconductor industry, partnering with a market intelligence firm is often helpful to navigate new challenges and explore new market opportunities.
The client is a well-known semiconductor manufacturing company based out of Germany. The company is one of the major producers of semiconductor, such as DRAM and NAND flash.
Our client, a well-known semiconductor manufacturing company wanted to understand the potential for their products in the US semiconductor industry. Also, the company wanted to devise a commercialization strategy to ensure commercial success for its products in the US semiconductor industry. However, they lacked insight into the US semiconductor market and competitive environment for making informed decisions. Also, the client realized that without a robust market assessment and competitor analysis, achieving sizeable market share and penetration would be impossible.
As such, they approached the experts at Infiniti Research to leverage their expertise in offering market intelligence solution. Also, they were looking for advisory on strategies for targeting new customers and suggestions on customer acquisition strategies.
Furthermore, with Infiniti’s market intelligence engagement, the client also wanted to tackle challenges such as:
US semiconductor industry challenge #1: Declining labor pool
The client noted that the number of skilled labor in the US was slowly shrinking. Also, the number of engineering graduates in the US has been static when compared to countries like China, Japan, and India. As such, attracting skilled labor was becoming one of the toughest tasks for semiconductor companies in USA. Before expanding to the US semiconductor industry, the client wanted to understand the capital requirements for attracting skilled labor and also leverage advanced technologies to attract young talent.
US semiconductor industry challenge #2: Ongoing pace of IoT development
As the cloud economy becomes mainstream in the IoT era, semiconductor companies in the United States will need to continuously innovate their processes to drive connectivity across the IoT value chain. In addition, semiconductor companies will need to produce chips with an ultra-small form factor, low power consumption, and wireless connectivity options. Therefore, the client wanted to explore all the lucrative opportunities in the US semiconductor industry and understand how their competitors adapted to the fast-changing marketplace.
US semiconductor industry challenge #3: Security threats
With IoT being one of the top growth drivers for the semiconductor industry, security concerns around connected devices posed major threats to companies in the US semiconductor industry. The client, therefore, wanted to understand all the operational and security risks faced by companies in the US semiconductor industry and take approaches to mitigate them.
With our expertise in offering market opportunity assessment, we helped the client to comprehend the potential challenges and barriers to entry across niche market segments in the US. Also, we helped the client to identify the needs of the American customers and design and deliver products accordingly.
By leveraging Infiniti’s expertise in offering market entry advisory solutions, the client was also able to review macro and micro economic environments, identify potential barriers to market entry, compare competitor offerings, and build robust route-to-market strategies.
Our experts also conducted a market scanning and monitoring study, where they analyzed the latest market trends and technological innovations in the US semiconductor industry. Furthermore, our experts helped the client to keep track of regional market developments in the US semiconductor industry.
The next phase of the market intelligence engagement involved a competitive intelligence and benchmarking study. This phase of the engagement helped the client to evaluate competitive landscape in the US semiconductor industry. In addition, our experts helped the client to analyze the top semiconductor companies in USA and also understand in detail their business models, financial performance, and strategic plans.
Our risk assessment study helped the client to evaluate all the major operational and security risks in the US semiconductor industry and take risk mitigation approaches to tackle them before they affect the company’s overall growth.
The experts at Infiniti Research also helped the client to evaluate the average capital requirement for recruiting skilled labor and setting up production center in the US.
With Infiniti’s market intelligence solution, the client was able to gain detailed insights on the market demographics and competitive scenario in the US semiconductor industry. They also developed a detailed understanding of the attractiveness of market opportunities for their product offerings in the US. In addition, the insights obtained from our market intelligence solution helped the client to devise a sound market entry plan and partnership structure to enter the US semiconductor industry. Also, they were able to devise a robust product commercialization strategy and enhance brand awareness in the US.
They were also able to successfully setup their production center and establish their foothold in the US semiconductor industry. In addition, by leveraging advanced technologies and processes, they were able to attract skilled labor and enhance operational efficiency. Within two year of entering the US semiconductor industry, the client realized a savings of over $4.3 million. Furthermore, they were able to enhance sales rate by 23%.