2017: IoT and the year of the engi-preneur

BY PATRICK MANNION

“Hi Alexa, what’s going to happen with electronics in 2017?” She couldn’t help me today, but this time next year, I expect a lot more from her.

Of course, the Alexa I am referring to is Amazon’s virtual personal assistant: artificial intelligence (AI) beautifully packaged beside me in the form of the second-generation Echo Dot. I have it because I am tearing it down for DesignCon 2017 (January 31st to February 2nd). It’s now also on my Santa list for this year, and I’m so excited about it, I’d like to give one away, too, so come join me at the Chiphead Theater at 2 p.m. on Wednesday, February 1st.

I am excited about this particular teardown because virtual assistants and the AI behind them — whether it’s Google Home, Siri, or Cortana — are actually starting to be really useful. This is especially so with billions of Internet of Things (IoT) devices now coming down the line. Forget clapping: with a simple request, Alexa can dim the lights to 30%, raise audio system volume, and call for take-out — all right after telling you that the forecast calls for more snow.

The other reason I’m excited is that Alexa can understand me! (I’ve got a wee bit of an accent.) If Alexa can understand me from across the room above the noise of the kids playing with the dog, then AI and smart, voice-controlled interfaces have finally landed. Of course, the microphones, hardware, and the software inside the Echo Dot enable all of this, so that’s what I’ll be exposing at DesignCon. In the meantime, what’s on tap for 2017? I’ll give you a hint: it’s about opening up to new career opportunities.

By the time you read this, CES 2017 will likely have come and gone and you’ll already be updated on the basic tech trends. However, as I write, technology titans are preparing to meet with President-elect Donald Trump after a year that saw industry-wide consolidation in semiconductors.

While the number of major companies designing or producing semiconductors is decreasing, according to the World Semiconductor Trade Statistics (WSTS), for 2017 and 2018, the revenue from all product categories will actually increase, reaching $354 billion in 2018. The prediction is of ~3% growth in 2017 and ~2% in 2018.

This raises a couple of questions. First, where are those semiconductors going?

IoT devices and support systems will likely be a key driver of semiconductor growth. However, it’s also very likely that any investments in infrastructure and transportation will have a strong semiconductor play as architectures for smart cities evolve. I’m pretty sure that our tech titans are letting their thoughts be heard on everything to do with smart technology. This investment is also good for autonomous vehicles, as self-driving vehicles will require a lot of infrastructure support, including their own lanes.

Other key areas likely to drive semiconductors in 2017 include the usual suspects: mobile handsets, infrastructure, robotics, medical, wearables, communications, energy, home automation, and military/aerospace.

This brings us to the second question: If fewer companies and fewer designers are producing more semiconductors, what becomes of the “extra” designers?

The answer is the application of semiconductors. I have seen engineers from IC companies move out and form their own startups, developing an IoT device. These newly fledged “engi-preneurs” are now promoting their own ideas on Kickstarter or have already received funding by going the more traditional venture capital or banking route.

New ideas and a friendlier business environment may well fan the engi-preneur flame, and that could be the single-most exciting and productive trend of 2017.

If you are an engi-preneur or intend to be one this year, let us know: we’d like to tell your story.