Integration, rather than chip supply constraints, has emerged as the biggest challenge for enterprises as semiconductors become increasingly central to business strategy, according to a new global report by HCLTech.
The report, The Silicon Shift: When Every Industry Becomes a Chip Industry, surveyed 300 senior leaders across engineering, R&D, semiconductor and hardware, product, innovation and technology strategy functions in the US, Europe and Asia.
Semiconductor dependency deepens
According to the report, 98% of enterprises are more dependent on semiconductors than they were three years ago, while 99% expect that dependence to increase over the next five years.
AI is further accelerating this shift, with 71% of respondents saying it is increasing the importance of semiconductor architecture as a strategic business decision.
Industrial automation has seen the sharpest increase in dependence, with 75% of respondents in the sector saying they are much more dependent on semiconductors than three years ago.
Integration becomes critical
While semiconductor supply chains have faced significant disruption in recent years, integration has now emerged as the leading reason why existing solutions fall short, the report said.
Integration was identified as the top concern in medical devices and industrial automation and ranked among the top two concerns across automotive, medical devices, network equipment and industrial automation.
The findings indicate that enterprises are increasingly looking beyond chip performance and availability towards their ability to integrate hardware, software and semiconductor technologies into complex products and systems.
Shift towards engineering partnerships
The changing requirements are also reshaping how companies approach semiconductor development.
Currently, 79% of enterprises rely entirely on off-the-shelf silicon or predominantly commercial silicon with limited customisation. However, 66% expect to adopt a different model within the next five years.
A majority of respondents expect external partners to play a larger role, with 59% anticipating approaches involving engineering partners, hybrid models, co-development or engineering services.
Only 3% expect to increase internal investment in custom silicon, while 4% expect greater reliance on off-the-shelf components.
Hardware-software integration drives demand
Among enterprises looking to engineering service providers, 67% cited hardware and software integration as a key requirement. Supply chain and lifecycle support followed at 61%, while 59% sought deeper industry expertise.
The findings point to a broader shift in the semiconductor ecosystem, where the ability to integrate silicon across long product lifecycles and industry-specific environments is becoming an increasingly important competitive factor.
“Semiconductor dependency now shapes corporate strategy, not just engineering roadmaps. What this research reveals is that enterprises are no longer asking which chip to buy. Rather, they are asking how to build a durable capability around silicon across long product lifecycles, high regulatory stakes and complex integration environments,” said HCLTech Executive Vice President & Global Head, Semiconductor Business Ameer Saithu.
“Industries that once primarily consumed semiconductor technology are now helping define what the next generation of silicon must deliver. This silicon shift is happening now, and it creates a tremendous opportunity for deeper collaboration across our ecosystem,” said SEMI President and CEO Ajit Manocha in the report’s guest foreword.
HCLTech said the research builds on more than three decades of experience across the semiconductor ecosystem. The company serves more than 90 global semiconductor clients, including all five of the largest semiconductor equipment companies and eight of the top 10 chip companies, and has invested more than $70 million in advanced semiconductor labs.