On one hand, it is considered unfavorable because chip manufacturers are viewed as prestigious companies in the industry, while modules are produced by downstream customers. As the integration of chips increases, the barriers to entry for modules are becoming lower. Therefore, when chip manufacturers start producing modules, many see it as a waste of “personnel and resources” that should be directed towards more high-return activities.
On the other hand, it can be seen as a positive development because, with the oversupply of chip manufacturers, taking cat.1 bis as an example, there are more than enough options available, and the competitive landscape seems to be becoming clearer. This simultaneously means that downstream customers do not need to adopt as many chip platforms. Since it is not feasible to develop numerous customers, what can be done? They can only step in to help customers sell products, specifically modules that utilize their own chip platforms; otherwise, they may struggle to achieve significant sales volume.
There is also uncertainty about whether this is good or bad. Firstly, there are not many high-return projects to invest in, and even if there are, they are challenging and cannot be realized quickly. Secondly, if they are going to sell modules, why not just sell modules directly? This raises the question of whether “the original manufacturers still need people to sell chips.” At this moment, it is unclear whether to continue selling modules or to focus intensely on selling chips.
What are your thoughts on this?