Case Study

Using TechInsights Bill of Materials (BOM) Database to Achieve Substantial Savings

A leading foundry specializing in providing semiconductor manufacturing services for customers globally, with capabilities extending from mid-tier to mature nodes, sought TechInsights’ expertise. Unlike its primary competitor, which produces advanced semiconductors down to 3nm nodes, this foundry’s focus on mainstream technology has led to a diverse customer base with disjointed needs. This diversity makes it challenging for the organization to develop a coherent strategic approach with different requirements and technologies for each of its key customer segments.

The Challenge

Due to its focus on manufacturing mainstream technologies, the organization serves a large and varied customer base, making it difficult to categorize and size each individual opportunity. In addition, its technology offerings are more dispersed compared to the advanced nodes used by its main competitors. This challenge is significant for the organization because it makes it difficult for them to reliably size their Total Addressable Market (TAM) and key customers, and to understand which the best opportunities are to pursue.

The Solution

TechInsights’ BOM database offered the organization access to over 15,000 teardowns, providing detailed insights into each device, including what components (chips) were used, primary suppliers, manufacturing nodes, and die sizes. TechInsights’ consumer electronics, automotive, and mobile market analysis, allowed the company to develop a model for estimating their TAM for its business in terms of unit volume and number of wafers. This model has become a key tool for the organization to conduct strategic planning, guide capacity management, sales strategies, new customer acquisitions, and perform competitive market share analysis.

The Results

The BOM Database-driven market model is a powerful strategic marketing tool that significantly enhances the organization’s decision-making across resources, technology, sales, and more. This is especially important when a company, like this one, serves different end markets with varying demands. The model enabled the organization to assess each market opportunity ten times faster than traditional methods, requiring only one or two analysts to manage TAM analysis effectively. As a result, the business achieved savings of around $1.2 million in analyst labor costs. Also, by gaining a deep understanding of each market through this model, the business can better anticipate customer dynamics such as oversupply and undersupply and prepare more strategically for market fluctuations.