Strategy Analytics: Delivering Insights for Business Growth

1Advanced Semiconductor Applications

Eric HighamDirector, Advanced Semiconductor Applicationsehigham@strategyanalytics.com+1 617-614-0721

Semiconductor Market Drivers

• IP data increase slows, but still impressive‒ 30.8% actual CAAGR‒ 23.7% forecast CAAGR

• Mobile data growth is the headline‒ 86.7% actual CAAGR‒ 46.3% forecast CAAGR

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• Data center traffic is even more impressive‒ Magnitude is 5-6x IP data levels‒ 28% forecast CAAGR‒ 75% stayed within the data center in 2017

• Doesn’t include “rack local” data• Large short-reach optical opportunity

Advanced Semiconductor Applications

The 5G Wireless Network

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Network enablers:

• MIMO

• Beamforming

• Wi-Fi

• LTE

• “Ultra-dense” deployments

• Vehicle-to-vehicle

• M2M (IoT)

• Device-to-device

• Cooperative devices

• Multi-hop communication

• More spectrumSource: C21V.org

Advanced Semiconductor Applications

There is a Data Tsunami on the Way!

• Centralization is very bandwidth intensive!

‒ Sample at RF frequencies

• 5G data traffic is enhanced by:

‒ Millimeter wave frequencies

‒ Massive MIMO antennas

• Data requirements get huge!

‒ May require Tbps of capacity!

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Source: Aviat Networks

Source: China Mobile

Advanced Semiconductor Applications

It’s Not Just the Wireless Network

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Here’s where it gets interesting:• Latency is a fundamental 5G pillar• Move intelligence to the edge

Source: C21V.org Results in smaller, but many more data centers

Advanced Semiconductor Applications

Where Does the (Compound) Semi Industry Innovate?

• Integration

‒ Photonic integration (silicon photonics and/or heterogeneous)

‒ Functional

• Performance

‒ The “ers” (better, faster, smaller, higher (lane speeds))

• Packaging

‒ 3-D?

• Supply chain

‒ How do we make it more robust?

Advanced Semiconductor Applications 6