“Accenture began its silicon enterprise in 2018 with a specific focus. We have been working with semiconductor firms, and with high-tech companies in a number of different companies however weren’t into chip design 5 years in the past. We’re very centered on bringing in differentiated and never commoditised expertise and wish to be end-to-end – from idea to design, to manufacturing commercialisation and post-commercialisation. We needed to do the entire 9 yards on silicon design and that’s how we began this enterprise,” Ramalingam instructed businessline.
- Additionally learn: Accenture acquires Cientra for silicon design capabilities
Synergies between acquired firms
In 2022, Accenture acquired XtremeEDA, a silicon design companies firm in Canada. The corporate introduced in particular expertise in superior processing and combined alerts. This was Accenture’s first step, and it continued to develop in that enterprise.
In July this yr, Accenture introduced it had acquired Excelmax Applied sciences, an India-based semiconductor design companies supplier, and Cientra, a silicon design and engineering companies firm with places of work in Bangalore, Hyderabad and New Delhi.
Commenting on this, he mentioned, “It was time to scale our enterprise. The expertise in India is large in silicon engineering, so we thought it was the suitable market. Whereas wanting on the acquisitions, after numerous due diligence, we felt these two firms synergised in a number of issues. They work on superior course of nodes; one in all them has constructed a check chip on a two-nanometer course of node. That they had a variety of expertise in areas like field-programmable gate array (FPGA), thermal energy administration, and customized application-specific built-in circuits (ASIC). The third half is the tradition. These two firms naturally slot in with our tradition and the way we wish to scale the enterprise.” Whereas Accenture might have simply acquired one firm and waited, it discovered that each had synergies, which is why they have been acquired collectively, he additionally mentioned.
Development alternatives in silicon enterprise
Stating that the silicon enterprise has matured, Ramalingam identified that at the moment, most hyperscalers have some type of customized chip designs. “Even automotives constructed customized ASICs so there was a possibility for us. One other dimension is the silicon-to-software facet. Accenture’s software program enterprise was all the time recognized out there. However in case you take a look at different conventional silicon gamers, there are extra software program programmers than silicon engineers. We recognized the synergies between silicon and software program and noticed the potential in downstream in bringing in superior analytics within the silicon design and the manufacturing course of,” he added.
Alongside, silicon is anticipated to develop into highly effective on the earth of GenAI. Quite a lot of Accenture’s prospects are constructing their customized ASICs, with hyperscalers investing and conventional silicon gamers doubling down. “We see a possibility in silicon – the whole end-to-end. The ability of bringing in knowledge and AI right here is phenomenal. Bringing in automation in manufacturing and design to make sure we get the chips out on time is a giant problem within the trade. AI and analytics will assist with this.”
In India, there’s numerous funding within the silicon enterprise for organising fab and superior packaging vegetation. Each require numerous capital venture involvement, which is part of Accenture’s Business X providing. In response to knowledge, the worldwide semiconductor market measurement, which was valued at $611.35 billion in 2023, is projected to develop from $681.05 billion in 2024 to $2062.59 billion by 2032, with a CAGR of 14.9 % through the talked about interval. “There was a slight downturn in 2019, however after that, there was a very good pickup for the trade. We wish to guarantee we’re on the core of this enterprise and within the work with our AI refinery with NVIDIA. These items want a very good understanding of how conventional silicon gamers work or the best way to construct customized fashions. This can be a development enterprise for Accenture. India, as all the time, performs a essential function as we develop this enterprise,” Ramalingam mentioned.
Modernisation path
Accenture’s software program and platforms enterprise consists of two key areas – first, it collaborates with CIO organisations on customized software program, the place it builds IT-specific software program options. The second space encompasses R&D and product growth for Accenture’s purchasers, which incorporates its silicon design apply.
Commenting on the platform enterprise, he mentioned “There was a time when all people needed to embrace the platform enterprise mannequin. Over time, they realised that not each enterprise must develop into a platform enterprise. However the important parts of a platform enterprise are required to run issues internally.”
Including that the enterprise facet is the place most of Accenture’s enterprise is, he mentioned, “The core parts of digital transformation could be categorized into three areas – first, the place prospects nonetheless have a tech stack modernisation, as in they’re nonetheless within the outdated tech stack. They wish to guarantee they’re prepared for the longer term and wish to get their tech stack prepared. An organization wants deep expertise expertise and to speak to the shopper about the best way to transfer their working mannequin. Expertise and tradition play an necessary function in tech stack modernisation. The second half is progressive modernisation. Third, end-to-end platform modernization is when a buyer goals to develop into a digital native firm or fully remodel right into a platform firm. Basically, a brand new enterprise mannequin is being created, paving the best way for brand new income streams and buyer base.”
Ramalingam said that in deep trade experience, you want a unique expertise, which Accenture Tune gives. Accenture Know-how gives a expertise area to construct platforms and function the platform proper. The corporate’s Consulting and Technique wing gives completely different skills for various working fashions. “Accenture has a play in each a part of the modernisation path. Whether or not you go upstream or downstream, one of the best worth for us all the time comes when the shopper is on the lookout for an end-to-end transformation. GenAI and different instruments will speed up this digital transformation and that’s how we see this trade.”
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