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G.hn is a specification for wire-line based home networking that targets gigabit-per-second data rates and operates over existing AC power lines, coax cables and phone lines. All these supported home wire types could be connected to single G.hn semiconductor device. G.hn brings to consumers easy-to-use accessing, storing and sharing a high volume of content around the home. With all these benefits G.hn is likely to become the most common interface for the majority of devices such as personal computers, TVs and set-top boxes, network-attached storage devices and others that have at least one power line connection.
Sales volume for mobile devices just keeps on growing. Analysts estimate that the industry will ship two billion units per year by 2018, up from one billion in 2013. What's behind this growth? While consumers are driven to own the latest "must-have" gadgets by the lure of better cameras, new features and bigger screens, the key driver may be the growing use of mobile devices in more areas of people's lives.
Semiconductor industry gross margins are under pressure. The average gross margin of the industry in Q4 2013 was 53 percent, which was a quarter-over-quarter decline of over 100 basis points (bps), and a continued decline of over 300 bps from the high water mark in Q3 2010 of 56 percent.(1) Outsourcing the capital-intensive tasks of semiconductor manufacturing to the external supply chain reduces working capital requirements. However, the fixed costs and associated overhead of the operations team, who perform product engineering and supply chain management, can account for six to 18 percent of the cost of goods sold(7) (COGS), which weighs on margins. For example, companies that produce three to five 65nm chips per year may efficiently utilize their operations teams. However, the move to 40nm and below has significantly changed these economics. One 28nm tapeout requires 78 percent more design time(2) and 40 percent more non-recurring investment(3) than a 40nm tapeout. These increased costs limit fabless semiconductor companies (FSCs) to fewer tapeouts,(4) which means there are fewer part numbers for the operations team to manage. Before 28nm the operations team was a perennial need, but it became seasonal at the new lower node. Fewer parts in the supply chain means reduced utilization of the operations team, which puts more pressure on gross margins. As legacy products mature, gross margins are squeezed even more.
No one could have imagined the impact of the mobile handset on society when it was first introduced commercially over 20 years ago. Today we depend on our cell phones for many different tasks from making simple calls to watching high definition live video. Not only has this device changed the way we work and play, but it has also transformed the network and created a vehicle for operators to monetize their investment. There is no doubt that the consumption of data is at the center of mobile handset growth and there are three major industry trends that will continue to not only drive demand for handsets but create industries and applications which will leverage the wireless network. All of these trends contribute to the growth in RF foundry.
What do all of these things have in common? They were key topics addressed by Cadence...