HCLTech’s new research, ‘The Silicon Shift,’ reveals that integration has surpassed supply chain issues as the primary challenge in the semiconductor industry. The report surveyed 300 senior leaders globally and found that 98% of enterprises are more dependent on semiconductors than three years ago, with 71% citing AI’s influence. Companies are increasingly seeking engineering service providers for hardware/software integration and deeper industry expertise.
Integration Emerges as Key Semiconductor Hurdle
A new global research report by HCLTech, titled ‘The Silicon Shift: When Every Industry Becomes a Chip Industry,’ has identified integration as the foremost challenge confronting the semiconductor sector. This finding surpasses previous concerns related to supply chain constraints and performance limitations. The report, based on a survey of 300 senior leaders across engineering, R&D, and technology strategy in the US, Europe, and Asia, highlights a significant shift in enterprise priorities.
Growing Semiconductor Dependency Fueled by AI
The research indicates a substantial increase in enterprise reliance on semiconductors. 98% of companies surveyed reported being more dependent on semiconductors compared to three years ago, with 99% expecting this dependency to grow further in the next five years. Notably, 71% of respondents believe that Artificial Intelligence (AI) is elevating the importance of semiconductor architecture as a strategic business decision. The industrial automation sector exhibits the most acute dependency, with 75% reporting much higher reliance.
Enterprise Strategies Shift Towards Partnerships
To address these integration challenges, enterprises are increasingly looking towards external engineering service providers. The study found that 67% of companies seek providers capable of delivering enhanced value through hardware and software integration. Furthermore, 61% prioritize supply chain and lifecycle support, while 59% value deeper industry expertise. The findings suggest that competitive advantage is increasingly derived from the quality of engineering partnerships and integration capabilities, rather than silicon performance alone.
Future of Semiconductor Ecosystem Collaboration
Ameer Saithu, Executive Vice President & Global Head, Semiconductor Business at HCLTech, emphasized that semiconductor dependency now shapes corporate strategy, moving beyond mere engineering roadmaps. He stated, “Enterprises are no longer asking which chip to buy. Rather, they are asking how to build a durable capability around silicon across long product lifecycles, high regulatory stakes and complex integration environments.” Ajit Manocha, President and CEO of SEMI, noted that industries are now actively defining the future of silicon, fostering opportunities for deeper collaboration.
Shift from Off-the-Shelf to Custom Solutions
While 79% of enterprises currently rely on off-the-shelf or mostly commercial silicon with limited customization, 66% anticipate shifting to different models within five years. The majority favor partner-led approaches, with 59% expecting their future strategies to involve external engineering partners, hybrid models, co-development, or engineering services. Only a small percentage (3%) plan to increase internal investment in custom silicon.
HCLTech’s Expertise in the Semiconductor Ecosystem
This research builds upon HCLTech’s over 30 years of experience in engineering across the semiconductor ecosystem. The company offers expertise in designing and delivering silicon, co-engineering tools for equipment makers, and optimizing fab operations. HCLTech serves over 90 global semiconductor clients, including top equipment and chip companies, and has invested significantly in advanced semiconductor labs.
Source: BSE
