Cypress Gets Embedded, But Can It Leverage Products? PART 9 OF 16
Opportunities for Cypress in the IoT market
In the IoT (Internet of Things) world, software is more important than hardware, and for this reason, Cypress Semiconductor (CY) is eyeing its opportunities in connectivity, intelligence, and software in the IoT market.
Connectivity
Unlike the PC (personal computer) and smartphone era, the IoT era demands a lot more than just silicon. At the company’s 2017 Analyst Day, Cypress CEO (chief executive officer) Hassane El-Khoury stated that the first and most important strategy aspect will the connectivity to the Internet. An IoT device is just a normal device if it’s not connected to the Internet.
Bluetooth and Wi-Fi technologies are now available for establishing connectivity between devices and the Internet, and some devices use a combination of the two, as they lack the user interface to enter a password for Wi-Fi.
Microcontroller
El-Khoury added that the second-most important aspect in its IoT initiative is the MCU (microcontroller) used for intelligence in devices. Right now, every radio requires a microcontroller, and as the complexity of silicon increases, future devices would need software alongside MCU and radio. But what will increase complexity?
Software
Unlike PCs and smartphones, an IoT device can be a home appliance, a wearable, a watch, home security, audio and video equipment, LED lighting, or a smart health application. Each of these devices will likely have different hardware.
But consumers will not want to learn new hardware platforms every time they buy products, according to Hassane El-Khoury. Everything has to be provided under an SDK (software development kit) to decode languages of different devices and bring seamless connectivity.
How is Cypress placed in the IoT market?
Cypress acquired Broadcom’s (AVGO) wireless IoT business in order to get the broadest connectivity portfolio in the industry. Its offerings include high-quality Wi-Fi, Bluetooth, and Bluetooth Low Energy. It has a first-to-market advantage over competitors, which gives it a pricing leverage, thereby improving the IoT segment’s gross margin.
Next, we’ll look at Cypress silicon offerings in the IoT market.
