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Faced with the growing opportunities in IoT applications, both domestic and international chip suppliers are actively entering the market. Currently, clients are focusing on IoT applications such as smart control, wired and wireless connectivity, and high power-saving capabilities. Recently, global leading chip manufacturers have been strengthening their technological positions, with some even planning acquisitions and mergers. Meanwhile, smaller IC design companies find it challenging to compete independently and are seeking strategic partnerships to capture new business opportunities.
Industry experts note that IoT applications are particularly well-received in sectors like factory automation, logistics, equipment manufacturing, and automotive industries. However, these industrial applications often require advanced microcontrollers (MCUs), wired and wireless communication chips, and analog IC solutions—technologies with high entry barriers that make them less suitable for small-scale or high-performance Taiwanese IC designers.
At present, most industrial-grade IoT opportunities are dominated by international chip manufacturers such as Texas Instruments (TI), STMicroelectronics, and Infineon. These companies are highly sought after by customers, and many of them operate their own fabrication facilities.
Although there are already some collaboration cases between international chip makers and Taiwanese IC design firms, the former tend to maintain a self-sufficient approach. In the future, they are expected to continue investing in internal development to strengthen their capabilities in MCUs, wired and wireless communication chips, and analog IC solutions.
Foreign analog IC suppliers highlight that ARM holds a strong position in the M-series MCU IP, supported by a mature ecosystem. This makes it difficult for chip manufacturers to differentiate themselves in the MCU space. As for wired and wireless communication chips, the technology is already well-established, leaving limited room for new entrants. On the other hand, analog IC solutions that offer power efficiency and long-lasting performance remain a key focus. Building a comprehensive analog IC product line, however, takes time and resources, making it a critical factor for global chip giants aiming to capitalize on the IoT opportunity.
The Taiwanese IC design industry emphasizes that IoT applications are vast and still evolving. Product specifications are constantly changing, creating a competitive environment. If chip suppliers can leverage their strengths in MCUs, wired and wireless communication chips, and analog IC technologies, they will be able to identify suitable customer needs and tap into the growing IoT market. With the right strategy, there is significant potential for growth in this emerging field.
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