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Locked on FPGA design brand recognition

Locked on FPGA design brand recognition
by Don Dingee on 02-28-2014 at 3:30 pm

Back in the days where computing was dominated by a few big (and now mostly dearly departed) names, there was a saying: “Nobody ever got fired for buying IBM.” The relative safety of immediate brand recognition, especially among non-technical upper management, dissuaded many users from recommending or even seeking out other options. Non-justification was just easier.

Technology changed, but people haven’t. Many users still make tech buying decisions based on risk-aversion instead of innovation, preferring to stand in line with the crowd even if we’re not quite sure what it is we are waiting for – but it must be good, because everyone important is here. Apple uses this effect to cause people to repeatedly stand in queues for iPhone and iPad launches, long after the initial burst of disruption wore off.

Photo credit: Adrees Latif / REUTERS

More often than not, I find myself subscribing to the Yogi Berra counterpoint: “Nobody goes there anymore, it’s too crowded.” But for most tech users, there is safety in numbers, especially considering options with low numbers tend to disappear quickly. The risk of the unknown can trump exploration of new technology.

Fortunately, in the age of the startup, venture capital, fabless technology, and social media, the mainstream choices usually are pretty good because they have to be for long-term survival. No company can afford to sit on their laurels for more than a brief moment of celebration; there are way too many competitors pounding at the gate. Good tech products have to evolve to stay competitive, and bad tech products or lousy customer support get clobbered on social media faster than Ronda Rousey challengers.

I was resolving final comments on a white paper for a client this week. In it, I made a generic statement there are many tools out there for FPGA synthesis, mentioning SystemC as one of the approaches designers may want to consider. The comment, which I greatly appreciate, came back:

[Xilinx] Vivado HLS is much more prevalent than SystemC.

That got me thinking. No disparaging Xilinx or Vivado Design Suite technology or popularity here; it’s a great tool. The latest versions of Vivado do have high level synthesis capability, and most embedded engineers are far more familiar with C/C++ algorithms and probably would like to use them directly if possible in FPGA designs.

We can debate the pros and cons of FPGA synthesis strategies, and the validity of the comment, another time. What I found interesting was the motivation behind it, and the immediate leap from methodology options to a tool choice, a very safe one at that. Nobody ever got fired for using Xilinx tools with Xilinx parts, right?

If your world begins and ends with Xilinx FPGAs, that’s OK. But, like the mainframe biz of yore, things could change. You could change jobs. You could get a new requirement, something exotic like rad hard or some funky interface. Your customer could tell you what FPGA you’re going to use, because changing their IP for another part is risk they don’t want. Or a myriad of other reasons to look at your options. (BTW, this all applies if you use some other FPGA architecture; you may have to switch to Xilinx at some point.)

You’ll walk in the office of some PHB where you work, and the conversation will go like this:
You: “Hey boss, I need you to sign this purchase order for Aldec Active-HDL.”

PHB: “Who’s Aldec? I thought we used Xilinx.”

You: “They’ve been in business 30 years selling vendor independent EDA tools, and they’ve got some great solutions for FPGAs we should try. I downloaded their evaluation and …”

PHB: “Yeah. But, is it safe?” (Google it.)


At this point, you could run before the anesthesia takes effect, or you could try explaining in terms the PHB would likely not understand, or you could whip out the recent SemiWiki article on Active-HDL from Luke Miller. You see, Luke was introduced to Aldec on a concall I was on in January 2014, downloaded the evaluation – and switched tools on the spot. His likelihood to see multiple FPGA architectures in his role as “The FPGA Expert” consulting to the industry at-large is very high, and he’s seen tools from many vendors.

I’m not suggesting to scream and run away from Xilinx or any other FPGA tools here. I think Xilinx Zynq is huge for the industry. This is just an example of how people lock on brand recognition.

All I’m suggesting is don’t ever let the PHB and his cronies dissuade you from looking at options like Aldec because they aren’t the names they are used to hearing. You might miss innovation that could make the difference in your next design – and then you and the PHB could both get fired. Don’t be that guy or gal.

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Synopsys’s Next Generation Emulator, ZeBu Server-3

Synopsys’s Next Generation Emulator, ZeBu Server-3
by Paul McLellan on 02-28-2014 at 12:17 pm

Since Synopsys acquired Eve over a year ago, they haven’t announced anything new in the ZeBu product line. Emulators are not like software where you expect incremental releases a couple of times per year, each new “release” is a complete re-design using new hardware fabric in a new process technology. Earlier this week Synopsys announced Zebu Server-3, currently the industry’s fastest emulation system (to be fair, whenever a new emulation product is announced it tends to be the fastest for a time…). They also announced a collaboration with Imagination Technologies to enable faster emulation, currently for Imagination’s PowerVR GPUs and in the future for the MIPS processor line too. Imagination are achieving clock speeds of 3.5MHz emulating their GPUs, compared to historic speeds closer to 1MHz with earlier generations of emulators.

ZeBu servers come in a 20″ cube weighing 155lbs and consuming less than 2.5KW. Inside there are Zebu modules (boards) that each handle 60 million gates. A cube can hold 5 of them and so each one can handle 300M gates. Ten of the cubes can be chained together to give a total maximum capacity of 3B gates. The underlying fabric is Xilinx Virtex-7 arrays, the ones that you have probably heard a lot about if only because they are 2.5D interposer-based designs using through silicon vias (TSVs). They are built in TSMC’s 28nm process.

Every emulation announcement rides on Moore’s law and is faster and with higher capacity than the previous generation. Perhaps more interestingly is the verification technology that Synopsys has intetgrated in with the Eve emulation technology they acquired. Here are some of the technologies that surround Zebu Server-3:

  • transactor libraries
  • memory models
  • DesignWare
  • Simulator-like debug with Verdi[SUP]3[/SUP]
  • Waveform viewing
  • Autotrace to disk
  • Coverage measurement
  • In-circuit I/O
  • Virtual adaptors
  • Automated software flow: partition, P&R, synthesis, memory compilers


One major challenge they have addressed is hardware/software co-verification. One problem in this environment is that the time between a bug in software and something detecting it might be a couple of billion clock cycles. A problem during a Linux boot might not show up until an attempt is made to access a video encoder, for example. Traditionally, emulators would capture a moving window of a couple of million vectors but that is not enough. Instead, ZeBu captures the state periodically and captures all inputs. To go to any clock cycle requires reloading that state and rerunning the inputs to get to the clock cycle of interest. This way billions of cycles can be stored very efficiently (interestingly, this is almost the same approach as we implemented at Virtutech to enable us to run code backwards. A reverse single-step meant reloading state and running all instructions except one).

They can also do hybrid emulation, with part of the design running on a virtual platform and part in the emulator. Where models exist (especially CPU models) they will typically run faster on the platform. A CPU “model” is a bit of a misnomer, since it is really a JIT compiler that can run the emulated code at close to (sometimes above) the actual performance of the target microprocessor. But emulation seems to be the killer-app for virtual platforms, avoiding the problem of needing to create a lot of models and keep them accurate as the RTL is developed. Just run the actual RTL on the emulator.

I assume you will be able to see a ZeBu Server-3 on the Synopsys booth at DVCon next week. They are at booth 201.

The Zebu press release is here.


More articles by Paul McLellan…


Friday Miscellany: EDAC Mixer, DVCon, DVCon Europe

Friday Miscellany: EDAC Mixer, DVCon, DVCon Europe
by Paul McLellan on 02-28-2014 at 8:31 am

Yesterday evening was EDAC’s first mixer. I assume the first of a regular event. It was held in Mountain View in the old train station which is now the Savvy Cellar wine bar. I had a nice glass of rosé from Provence that reminded me of the years that I lived in the south of France. Some of the money we spent went to charity, to the Mountain View Educational Foundation (MVEF).

To my surprise I discovered another “microprocessor company you’ve never heard of”, this one, like my wine, from the south of France. Montpelier to be exact. It is called Cortus and has been around for nearly 6 years and shipped over half a billion devices (well, its licensees have, it is an IP company). More surprising still was that it is represented in the US by Scott Hills who used to work at VLSI twenty years ago.

There were lots of Jasper people at the event. Not surprising since their offices are just a few blocks down in the middle of Castro Street. Kathryn hadn’t shown by the time I had to leave but everyone assured me she was coming.

I guess there were 30 or 40 people there in total. The wine bar is quite small so it is a good job that hundreds of people didn’t show up. Anyway an enjoyable evening.

One major topic of conversation is that next week is DVCon, the big conference totally focused on verification. With verification being such a bit part of design these days it is starting to feel that verification is all there is. It is in the DoubleTree in San Jose as usual.

The conference kicks off with the annual Accellera Day on Monday, March 3. The day-long event will run from 8:30am-4:30pm and will feature in-depth tutorials from experts and users on the latest in electronic design and intellectual property standards. There will also be a sponsored luncheon from 12:15-1:45 that will discuss The Future of Mixed Signal Verification: From Manual Simulations to Full Regression?

The keynote is at 2pm on Tuesday, given by Lip-Bu Tan, CEO of Cadence: An Executive View of Trends and Technologies in Electronics. Drink every time you hear “internet of things.”

The DVCon Expo will be open for three afternoons: Monday, March 3 from 5:00-7:00pm, including a sponsored booth crawl; Tuesday, March 4 and Wednesday, March 5 from 2:30-6:30pm. There are a record number of 41 exhibitors participating in the Expo.

In addition to the 12 tutorials, 14 papers and record of 30 posters being presented, there will be 2 panels during the conference. The first panel, Is Software the Missing Piece in Verification? will be moderated by Ed Sperling, and will be held on Wednesday, March 5 beginning at 8:30am in the Oak Ballroom. The second panel, traditionally known as the Industry Leaders Panel, is titled, Did We Create the Verification Gap? and will be moderated by John Blyler. It will begin at 1:30pm on Wednesday in the Oak Ballroom.

And DVCon is going international. Not only is there DVCon in the US next week, there is a new (presumably first annual) DVCon Europe. it will be held in Munich on October 14-15th. The detailed program won’t be available until July 1st, although the 50,000 foot (or should that be metres in Europe) is that day 1 is tutorials and exhibition and day 2 is technical sessions and the exhibition. Call for papers is out already and open until April 8th. And potential exhibitors can sign up.


More articles by Paul McLellan…


Mixed-Signal SoC Debugging & IP Integration Made Easy

Mixed-Signal SoC Debugging & IP Integration Made Easy
by Pawan Fangaria on 02-28-2014 at 7:30 am

A semiconductor SoC design can have multiple components at different levels of abstractions from different sources and in different languages. While designing an SoC, IPs at different levels have to be integrated without losing the overall design goals. Of course, quality of an IP inside and outside of an SoC must be tested thoroughly. Considering today’s large SoC designs with multiple IPs, it’s imperative that effective debugging tools with easy and quick visualization, navigation, annotations etc. are a must for designers to make right decisions during the course of design. The designers should be able to easily analyze different parts of the design which can be in different languages such as Spice, Verilog, VHDL, SystemVerilog etc. and can have different levels of voltages and signals.

Last week I attended a webinaron Mixed Signal SoC Verification hosted by EDA Directwhere they showcased StarVision[SUP]TM[/SUP]tool from Concept Engineeringthat does the job quite elegantly at all levels. Lokesh Akkipeddi of EDA Direct presented interesting capabilities of StarVision[SUP]TM[/SUP] followed by a demonstration. While the video shoot of the webinar can be available in future, I wanted to highlight some of the key capabilities of the tool which appeared very apt for quick and easy debugging of typical scenarios in SoCs, which can otherwise be very cumbersome and time consuming. That enables designers to easily and effectively integrate IPs into an SoC.

The overall semiconductor design can be visualized with its parts at Spice, Gate or RTL level either in schematic or in its source code format. Post layout and netlist interfaces can be easily represented and visualized. Hence any third party IP in available format can be quickly imported into the flexible GUI and then analysed, debugged and integrated into the SoC.

A quick and easy way is to use cone view for debugging AMS designs; cone views provide very clear picture for tracing signals passing through different levels of hierarchy in the design.

In large SoCs, there can be several clocks driving various parts of the overall semiconductor design. It’s very important to check if there is any clock domain crossing issue. The Clock Tree Analyzer in StarVision[SUP]TM[/SUP] presents all clock domains and their interconnections in an easy to view graphical form. By double clicking on any interconnection, designers can view the clock domain crossing in that path.

Timing closure is a major concern in SoC verification; violations need to be appropriately understood before fixing them. StarVision[SUP]TM[/SUP]automatically annotates schematics with timing information from PrimeTime report. Timing violations on any circuit element can be easily spotted and appropriate action taken.


There is an integrated waveform viewer which can show the complete waveform from VCD data. StarVision[SUP]TM[/SUP]also annotates source and cone views with the VCD data as appropriate. The toggling nets at various components in the cone view and the source view are clearly visualized for the designers to get a feel of consistency in functioning of the circuit as desired.

Although there is provision to visualize the circuit with complete parasitics, to recognize a particular circuit with ease, there is provision to hide parasitics and simply view the circuit with only logic components. For recognizing circuits, there are other features as well such as merging of parallel transistors. Again there is provision to view logic symbols as per desired library such as Cadence. In this example circuit, it’s very difficult to recognize the inverter in the RC view which has all resistances and capacitances cluttered along with the transistor symbols. However that is clearly recognized in non-RC view.

It’s very tedious work to do post layout parasitic level analysis. However it’s very important to be able to fix issues at this stage without disturbing the whole circuit and initiating a whole iteration of the costly design flow. StarVision[SUP]TM[/SUP]provides an easy-to-use drag & drop of nets which can be viewed in full parasitic format with the data read from SPEF or DSPF file. Multiple nets can be viewed at a time in different colors.

Overall it was a great session with live interaction with Lokesh. Look for more information about this product or webinar at EDA Direct here. A self-running demo of StarVision[SUP]TM[/SUP]is also available at Concept Engineering website here.

More Articles by Pawan Fangaria…..

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SmartConnect goes five by five for the IoT

SmartConnect goes five by five for the IoT
by Don Dingee on 02-27-2014 at 8:45 pm

OK, enough with octa-core mobile monstrosities for now. Let’s shift gears to Embedded World 2014 and the lower end of the spectrum, one that will make up the vast majority of devices on the Internet of Things: tiny, low power microcontrollers with integrated wireless connectivity.

There still seems to be some stigma about putting RF into designs, and some of it is justified. One of our readers commented this week that Apple “does not have the know-how” in reference to integrated baseband LTE. On the contrary, I’d say: Apple can buy any IP or talent they want. Their reluctance stems more from the realities of supply chains and multiple carrier qualifications facing different requirements in worldwide markets, not a technology issue per se.

RF designs still need proper care and feeding and regulatory clearance. We continue to see strides in RF integration – with attention now turning to the microcontroller level. This is especially true for protocols that can be dropped on chip via an IEEE 802.15.4 radio, such as 6LoWPAN and ZigBee. The challenge for companies is to deliver wireless in a small package, using minimal power, at a low cost – and then, enable solutions with software.

I think most software types recognize the advantages of 32-bit cores for the IoT. This is especially true moving toward the future with needs like IPv6 addressing, advanced protocol stacks like ZigBee Smart Energy Profile 2, and stronger encryption for security which is becoming more important with every passing day.

With all that to consider, one of the bigger “smaller” announcements at Embedded World was Atmel SmartConnect. The SAM R21 is an ARM Cortex-M0+ core with an integrated 802.15.4 radio; the most aggressive version comes in a 32 pin 5x5mm package, and in industrial temperature grades up to 125C, with the family starting at $2.75 in 10K quantities.

Integrating a radio on an MCU isn’t exactly news – Atmel has been at this for a decade, others have followed suit – but IoT-ready software at these package sizes, power consumption, and price points is. The software buzz at #EW14 came from ThingSquare, running their open source Contiki OS and 6LoWPAN on the SAM R21 Xplained PRO board. (For those unfamiliar, the Contiki community refers to itself as “the open source OS for the IoT.”)

Don’t be deceived by the board size, set up for convenience of finger-sized buttons and inexpensive connectors for development use. That’s the SAM R21 in the center (in the slightly larger 48 pin 7x7mm variant), one chip that gets designers on the IoT quickly if the target is ZigBee or 6LoWPAN.

That was the easier part. What about the Wi-Fi version? Press releases sometimes require careful reading between the lines plus an understanding of competitive space. Getting Wi-Fi down into this MCU range of small, low power, and inexpensive is a bit more challenging right now – most MCU implementations today rely on a 4-wire SPI connection to a separate Wi-Fi part. Atmel was somewhat vague referring to a “single package” SmartConnect Wi-Fi module, and their wording suggests a similar two-part approach.

I’m presuming Atmel knows what they are up against for Wi-Fi modules popular with IoT types, and is bringing a solution that saves space and BOM cost in comparison – we’ll see as they release details. We do know they are continuing to work hard on the Studio 6 IDE, supporting the SmartConnect family in wireless “composer” capability with C/C++ modules. As I’ve said before, silicon is only the enabler – code is the product.

The spellbinding story of our time is how embedded is now swinging heavily toward the IoT, an unmistakable takeaway from Embedded World. Microcontrollers are changing to address intelligence plus connectivity to be part of this new tale.

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Celebrating 50 Billion ARM Powered Chips!

Celebrating 50 Billion ARM Powered Chips!
by Daniel Nenni on 02-27-2014 at 12:00 pm

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In case you have not seen it yet there is a website named 50BillionChips where you can follow the journey of ARM. This goes quite well with the brief history of ARM we wrote last year in preparation for our bookFabless: The Transformation of the Semiconductor Industry. ARM was a big part of that transformation of course.
Continue reading “Celebrating 50 Billion ARM Powered Chips!”


A Brief History of STMicroelectronics

A Brief History of STMicroelectronics
by Daniel Nenni on 02-27-2014 at 10:00 am

STMicroelectronics is the result of the 1987 marriage between famed semiconductor companies SGS Microelettronica of Italy and Thomson-CSF Semiconductor of France. You may recognize the name SGS-Thomson which was replaced by STMicroelectronics in 1998. After the merger SGS-Thomson was ranked as number 14 in the top 20 semiconductor companies with revenue of $850M.

Currently STMicroelectronics is the 9th largest semiconductor company with net revenues of more than $8B in 2013. ST has a broad product portfolio serving customers across a wide spectrum of electronics applications including sense and power technologies, automotive products, and embedded-processing solutions.

Before the merger, both SGS and Thompson struggled against the fast moving American and the entrenched Japanese companies that made up the global semiconductor industry. Fortunately, both SGS and Thompson were backed by their respective governments which recognized the need for representation amongst the emerging semiconductor manufacturing industry.

SGS originally emerged as the semiconductor manufacturing division of Olivetti in 1957 to supply other Olivetti divisions. The growth of SGS was aided by Olivetti’s expansion and licensing agreements with Fairchild Semiconductor in the 1960s and 1970s. Unfortunately SGS was still very small in comparison to its American and Japanese rivals and unable to compete effectively in the global marketplace.

Thomson-CSF, a major electronics and defense contractor, emerged from France’s technological efforts in the 1980s as a series of business acquisitions and mergers. In the late 1980s the company separated the defense business (Thales Group) and the consumer electronics business (Thomson Multimedia). Thomson-CSF Semiconductor was then spun out and merged with its Italian counterpart Finmeccanica which was then merged with SGS. (This is a bit confusing so let me know if I got it right)

Pasquale Pistorio started his career with Motorola returning to Italy in 1980 to take a leadership roll with SGS and is credited with the creation of STMicroelectronics. Pasquale started by shutting down outdated manufacturing facilities and began the construction of a state of the art research and development facility in Grenoble France in the early 1990s. Having been a frequent visitor to this facility I can tell you what a marvel it was at the time. ST thrived under Pasquale’s leadership who was CEO until 2005.


The Grenoble campus is no longer a manufacturing facility but hosts many ST divisions including silicon and software design and fab process research and development. The neighboring Crolles site (above) is the silicon manufacturing center with a 200mm and 300mm fab. Crolles is at the base of the alps and is the most beautiful fab location I have ever been to, absolutely. The 300mm fab was part of the “Crolles 2 Alliance” which brought STMicroelectronics, TSMC, NXP Semiconductors (Philips semiconductor) and Freescale (Motorola semiconductor) together to jointly develop process technologies.

Today ST has approximately 45,000 employees, 12 main manufacturing sites, advanced research and development centers in 10 countries, and sales offices all around the world. ST operates a worldwide network of front-end (wafer fabrication) and back-end (assembly and test and packaging) plants. ST’s principal wafer fabs are located in Agrate Brianza and Catania (Italy), Crolles, Rousset and Tours (France), and in Singapore. ST also has world-class assembly-and-test facilities located in China, Malaysia, Malta, Morocco, the Philippines and Singapore.

On the process side ST is leading the way with advanced FD-SOI (Fully Depleted Silicon-on-Insulator) technology which is a frequent topic of conversation on the SemiWiki STM landing page.

More Articles by Daniel Nenni…..

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Yamaha Selecting Audio/Voice DSP Architecture?

Yamaha Selecting Audio/Voice DSP Architecture?
by Eric Esteve on 02-27-2014 at 3:51 am

…or Chongquing CYIT Communication Technology Co Ltd. Both of them have recently licensed the CEVA-TeakLite-4 DSP, the latest for its multi-mode wireless baseband chips targeting 4G terminals, including smartphones and tablets (CYIT) and Yamaha to address the need to run increasingly complex voice pre-processing algorithms, advanced audio post-processing, and always-on voice activation, a must-have feature in today’s high-end smartphones, all at extremely lower power. Going 15 years back, I remember the first time that I have heard about the TEAK DSP core, when Atmel co-designing with WaveCom a Baseband processor through an ASIC flow…

We are now talking about the fourth generation of the CEVA-TeakLite family, the CEVA-TeakLite-4. This DSP core is a low-power, native 32-bit, variable 10-stage pipeline, fixed-point DSP architecture framework, fully synthesizable, process-independent design that allows the SoC designer to select the optimal implementation in terms of silicon area, power consumption, and operating frequency. As you can see on the above picture, the CEVA-TeakLite-4 can be implemented to support 4G Baseband. According with Mr.Daqin Peng, Marketing Director at CYIT. “The ultra-low power CEVA-TeakLite-4 DSP offers us the optimal platform on which to develop our LTE terminal chips, providing outstanding performance and flexibility and capable of handling a wide array of audio, voice and baseband processing tasks.”

The CEVA-TeakLite-4 versatility also allows addressing the need to run increasingly complex voice pre-processing algorithms, advanced audio post-processing, and always-on voice activation, a must-have feature in today’s high-end smartphones, all at extremely lower power. The CEVA-TeakLite-4 DSP architecture is complemented by a set of instructions specific to audio/voice processing, and Yamaha Corporation is strongly focusing on these audio/voice segments. “Our comprehensive selection process has led us to understand clearly that the CEVA-TeakLite-4 cores have the industry-leading audio/voice DSP architecture, the smallest footprint, and the best power efficiency for mobile product ICs,” said Nobukazu Nakamura, Manager of Strategic Marketing Department, Semiconductor Division, Yamaha Corporation. “We continue to work together with CEVA for the continual advancement of our audio/voice product roadmap, integrating leading-edge technologies, yet achieving better performance and greater power efficiency at the same time.”

If you look at the above table, the CEVA-TL410 audio DSP core is probably the basic choice for Yamaha, like for a majority of chip makers targeting audio/voice segments, as CEVA is continuously growing market share in these segments, according withGideon Wertheizer, CEO of CEVA. The CEVA-TeakLite-4 is the most successful licensable DSP architecture in the history of the semiconductor industry, with more than 3 billion audio/voice chips shipped, over 100 licensees, 30 active ecosystem partners and more than 100 audio and voice software packages available.

The CEVA-TL410 DSP core has been designed with a primary target of standalone audio DSP chips used to implement audio CODECs, audio D-Class amplifiers, and noise-reduction chips. The ultra-low-power CEVA-TL410 audio DSP core offers the smallest die size with its single 32×32-bit MAC, dual 16×16-bit MACs, and direct memory interface. If higher performance is required, the CEVA-TL411 audio DSP core provides dual 32×32-bit MACs and quad 16×16-bit MACs.

If you want to get the full picture of CEVA’s portfolio, just take a look at CEVA powered product

From Eric Esteve from IPNEST

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IoT: the sum of all technology opportunities

IoT: the sum of all technology opportunities
by Don Dingee on 02-26-2014 at 5:00 pm

There was a time not that long ago, before smartphones arrived on the scene, where Mentor Embedded Nucleus RTOS was dominant in non-Nokia feature phones – Mentor is part of the “Billion Unit Mobile Club”. Since then, Mentor has been searching to recreate that type of success, and like so many other software firms, they are now aiming Nucleus at the Internet of Things.
Continue reading “IoT: the sum of all technology opportunities”


TI’s Way of Strategies – Formation & Execution

TI’s Way of Strategies – Formation & Execution
by Pawan Fangaria on 02-26-2014 at 8:30 am

For a company to stand still and continually prosper even after facing several downturns in its career of 80+ years, and still move swiftly with strong commitment and confidence, its strategy has to be right and rock solid possessing sustainable competitive advantage, and of course it has to be an early mover in everything it does with a determined point-of-view. That’s exactly what my close observation tells me about Texas Instruments. What’s more important in the formation of a strategy is – how much early it is spotted and how swiftly it is acted upon. And even more important is its implementation and fast execution. At times strategies can go wrong, but if executed fast enough, one can quickly smell the results and change it as appropriate; however one needs to have the knack of sensing that direction.

In my analysis of TI from the days of its incorporation, I have found that it’s very apt in early anticipation of future movements and directions and moulding itself (before anyone else does) in delivering on those. Its strategies are motivated by external opportunities and fuelled by internal resources and capabilities built up over time; hence TI generally has mixed strategies. Look at their 41000+ patents and timings of some of the prominent ones among them, and then some of the key developments based on those patents, even the developments based on external licenses. Credit goes to the visionaries in this company.


[TI’s R&D Kilby Center]

After replacing vacuum tubes with transistors, TI was quick in spotting the opportunity of ICs in re-shaping the electronics industry. While serving for U.S. Defense organization’s electronic need, it also built up semiconductor IC manufacturing capability to avail that massive opportunity in consumer electronics. Today, microelectronic manufacturing is one of the strong core competences of TI that fuels many of its businesses. TI spends about 12.5% of its revenue in R&D that includes basic research, new product ideas and other far fetching environmental areas such as smart grid and healthcare; to keep an eye on major future innovations and developments.

Let’s look at some of the strategic moves TI has taken over a long course of time, and it would be interesting to watch at the speed of their execution. While working for U. S. Defense Department, TI tasted its first fruits of electronic success with silicon transistors, portable radio, ICs, first computer for U. S. Air Force, calculator, and the like. Looking at a bigger opportunity in semiconductor electronics, they negotiated with IBM in parallel for the later to start using TI’s electronic components into IBM computers. In 1970, microprocessor chip was developed. Within ~10-15 years of IC’s birth, the semiconductor industry had grown to multi-billion-dollar industry, and TI being an early mover into this business created a prime spot for itself. TI entered into all sorts of businesses involving microprocessor controlled devices which included industrial applications as well as consumer electronics. It even introduced onetime favourite digital watches (at $20) in 1976. It also came up with speech synthesizer devices for educational aid. It opened semiconductor manufacturing facilities across the world; to start with in 1957, its first facility outside U.S. in Bedford, U.K. to supply semiconductor based electronics to Western Europe and then in other parts of the world.

By the time competition had moved in, around 1975, TI had to face price war, particularly by Bowmar Instruments in calculators and then other Asian manufacturers of consumer electronics. It started losing market in calculators, watches, LCD etc. While it was losing these businesses, it also lagged in fulfilling orders for semiconductor chip manufacturing (the cash cow). Some of TI’s strategies didn’t work as desired, mainly due to pricing; price skimming strategy didn’t work anymore. In late 1979, TI introduced home computer (at $1400), but soon lost the business due to price war, and in 1983 TI made its first loss instead of profit. The semiconductor slump during early 1980s added to the misery of TI when it had to reduce its work force by ~10000; financial losses continued until 1985. This is when TI spent no more time in realizing that it needed to focus on high margin businesses attached to its technological edge and core competences.

In the leadership of Jerry Junkins, from 1986, TI took a major strategic turn. It re-focused on its innovation spree and manufacturing competence to focus on high-margin custom microprocessors and DSP (Digital Signal Processing) cores instead of low-margin chips. TI also initiated a method of earning royalties on its patents’ licenses, initially by filing suits against DRAM manufacturers who were selling DRAMs without obtaining licenses from TI. Junkins also initiated collaborative businesses (called B2B) with major players such as Hitachi in Japan, Sun Microsystems, General Motors, L.M. Ericsson, and Sony and alliances with Acer, HP, Canon and governments of Singapore, Italy and others. By 1993, TI’s revenue again swelled with almost 60% increase in per employee revenue, led by custom and speciality segment of electronic components and also software. During this time, TI had noticed a major lucrative business in DSP area and invested heavily into building this capability. In 1994, it came out with the first single chip multimedia video processor (which can be termed as an SoC that combined multiple DSP and RISC chips). DSP became another core competence of TI gaining major market share and expansion. While TI acquired many DSP companies, it sold its low-margin memory business to Micron. Smart move!!

TI continued to keep its top position in analog products market and entered the new millennium with a solid, slightly less than $12 billion revenue and ~22% profit margin. The company sustained the worst downturn of semiconductor industry in 2001-3, although with falling share prices. In the new millennium, its focus turned towards wireless handsets and DLP (Digital Light Processing) technology. That is when TI convinced Nokia to use its DSP chip as core in cell phones before Nokia became the champion of cell phones. Rich Templeton led TI into the cell phone revolution through its wireless phone chips. In a crude sense, we can say – when Intel pushed TI out of computer chip business, TI spotted cell phone opportunity which later started pushing down PC market in general, i.e. like remaining ahead in the game! Sometime later, I will talk more about TI’s reaping of rich benefits from wireless and cell phone (smartphone) business until it recognized, well in advance, the maturing smartphone business and coming out of it, as usual, much in advance than anyone else.

In wireless area, TI continued with increased focus on embedded processors for sustainable growth. And continued focus on its core, analog semiconductor business. It will be interesting to watch TI’s moves in MEMS business, the next big thing for IoT (Internet of Things) business. TI is top revenue maker in MEMS business, ST being the main rival. In CES 2014, TI’s new DLP chipset technology kept the eyes rolling. This DLP chipset makes it possible to develop pocket-able projectors with great lumens and resolution; Sekonix will be coming up in this year. DLP chip invented in TI can have an array of up to 8 million microscopic mirrors. Used in office projectors, cinema projections, IMAX, TVs, mobile displays and several other industrial, automobile, medical and security applications, DLP technology is one of the major strategies of current times in TI. I will talk more on DLP technology later. And also about power management as TI keeps close watch on smart grid, energy harvesting and the like developments in the near future.

Okay, I would like to wrap up this article here with some closing remarks. Most of the times, TI has been successful in microelectronics semiconductor manufacturing (its core competence) and its related diversification. That has led TI to build other core competences as well, such as analog and embedded processing, DSP, DLP and so on. As TI’s sharp focus on upcoming big things and speedy build-up of expertise in those areas has always crowned it with victory, it would be interesting to watch how it plays in IoT revolution as that will infiltrate most of the verticals such as home & consumer, automotive, aerospace, healthcare, industrial, military, retail, security & surveillance, entertainment and so on. And TI already retains a dominant position in MEMS business. Rich Templeton is a sharp, forward looking leader; it appears that he has his strategy set for the new era of “number of devices per person” instead of out dated “number of persons per device”.

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