When I speak to semiconductor product managers, directors and VPs, one of the questions I often ask is, “How much does it cost you if your chip is one month late?”
Surprisingly, fewer than half know the number. And even fewer know how to calculate the revenue loss due to being late to market. The purpose of this series of articles is to explain how you can calculate your TTM revenue losses yourself.
Why is understanding your potential losses due to being late to market so important?
Simple: The revenue loss from being late to market can be much greater than the costs you incur designing and manufacturing your chip!
For example, if you are one quarter (3 months) late to market with a chip that has a 2 year product life on the market, you have already lost over one-third the revenue you would have received for the chip had it been on time.
In other words, if you had expected $100M in revenue and it cost $30M to make, then you lost more money than the chip cost to make just by being late to market by one quarter!
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