The software revolution at the heart of the chip industry

At the heart of our era’s digital transformation – powering everything from satellites in the sky to consumer devices in our hands – it all comes down to tiny, intricate semiconductor chips. Traditionally, the semiconductor industry’s opportunities are met primarily with a hardware-centric approach. The focus is on creating a product that meets the industry’s unique hardware needs first, and the primary value lies in the physical chip capabilities. Software plays a ‘supporting role,’ developed to complement and support the hardware after its specifications have been established.

Of course, even in a hardware-centric approach, the software is essential to exploit a chip’s full potential. The software makes the hardware accessible and valuable to the end-user by providing the necessary interfaces, controls, and customizations.

Here we’ll explore the opportunities facing chip companies at this turning point and some of the challenges along the way.

• What is driving this Softwarization shift?
• What opportunities does this create for Semiconductor companies?
• Where can these companies expect to find value?
• What is holding companies back?

Formidable obstacles stand in the way. Many semiconductor companies share the goal of becoming more ‘software-centric’ but lack a clear route forward to accelerate the transformation. Some have taken their first steps in the right direction but realized that softwarization is even more complex than expected.