The semiconductor industry remains the backbone of digital innovation, from AI and cloud computing to autonomous vehicles and next-generation mobility. After a volatile 2023, the industry rebounded selectively in 2024 with strong growth in high-performance computing, AI accelerators, and advanced-node foundry services. However, this growth is uneven. While global leaders surged with cutting-edge R&D and close ties to hyperscalers, others struggled with legacy demand and geopolitical restrictions. Amid these shifts, the engineering segment of the semiconductor value chain is transforming. Generative AI, chiplet architecture, photonic-electronic co-design, and heterogeneous integration are rethinking their design and manufacturing strategies. Simultaneously, automotive and consumer Original Equipment Makers (OEMs) are increasing their internal silicon initiatives. Additionally, Global Capability Centers (GCCs) have emerged as pivotal hubs to scale innovation, access talent, and mitigate supply risks. This report serves as a comprehensive guide for stakeholders navigating the evolving semiconductor landscape. It offers a data-driven analysis of market dynamics, engineering outsourcing trends, provider positioning, and strategic imperatives for enterprises and suppliers.

The increasing adoption of AI, the Internet of Things (IoT), and 5G is significantly driving Engineering Research and Development (ER&D) investments in the semiconductor industry. Advances in semiconductor technologies, such as smaller node sizes, innovative materials, AI-enabled chipsets, custom-designed chips, advanced packaging techniques, and emerging chip architectures, are accelerating innovation. Companies are also leveraging generative AI to enhance semiconductor engineering. However, semiconductor enterprises struggle with meeting evolving customer demands and managing increased complexities in the value chain due to design changes and complex validation procedures. Providers in the semiconductor engineering industry are vital in addressing these challenges. They support fabless companies, integrated device manufacturers, electronic design automation tool providers, and foundries. In this report, we assess 19 semiconductor engineering services providers’ capabilities and offerings. The report highlights their key strengths and limitations regarding enterprise sourcing considerations. Scope Industry: ER&D Geography: global This assessment is based on Everest Group’s RFI process for the calendar year 2025, interactions with leading providers, client reference checks, and an ongoing analysis of the engineering services market. Contents In this report, we: Examine the semiconductor engineering services landscape Compare providers’ key strengths and limitations Assess each provider’s key solutions and investments Membership(s) Engineering Research and Development Sourcing and Vendor Management

The growing demand for personalization and the integration of software into traditional engineering products have driven the rise of connected products. These products evolve by incorporating technologies that make them smart, connected, and autonomous, enabling greater transparency, operational efficiency, and robustness across industries. Key technologies such as IoT, AI/ML, AR/VR, 5G, and data analytics are attracting significant investments as enterprises strengthen their digital portfolios. Most companies are at varying digital adoption stages, ranging from isolated applications to large-scale deployments. As the connected product market rapidly evolves and remains highly competitive, enterprises must continuously innovate and accelerate time-to-market. Many collaborate with partners to access niche skills and reduce costs while globally diversifying their value chains. In this report, we assess the connected product engineering market, identify key technology and business trends impacting the market, and study the challenges and opportunities that lie ahead. The report also examines how providers align with customer requirements and enhance their capabilities to become partners of choice in connected product engineering. Scope Industry: engineering services Geography: global Contents In this report, we examine: Enterprise research and development spending on connected product engineering, growth drivers and use cases by verticals, business and technology growth drivers, and enterprise maturity levels Key trends and investment themes influencing spending, such as platforms for connected devices, talent demand, and generative AI integration with connected products The outsourcing landscape, assessing the growth of connected product engineering services and how providers are adapting to meet market demands Membership(s) Engineering Research and Development Sourcing and Vendor Management

The increasing adoption of AI, internet of things, and 5G is significantly driving Engineering Research and Development (ER&D) investments in the semiconductor industry. Fueled by advances in semiconductor technologies, such as smaller node sizes, innovative materials, AI-enabled chipsets, custom-designed chips, advanced packaging techniques, and emerging chip architectures, companies are also harnessing generative AI to enhance semiconductor engineering. However, semiconductor enterprises face challenges in meeting evolving customer demands and managing increased complexities in the value chain due to design changes and complex validation procedures. Providers in semiconductor engineering play a crucial role in addressing these needs by supporting fabless companies, integrated device manufacturers, electronic design automation tool providers, and foundries. In this research, we assess 18 leading providers associated with semiconductor engineering, along with sourcing considerations for enterprises. This assessment is based on RFI responses from providers, interactions with their semiconductor engineering leadership team, client reference checks, and an ongoing analysis of the engineering services market. Scope Industry: ER&D Geography: global Contents This report covers: The Semiconductor Engineering Services PEAK Matrix® 2024 Key characteristics of Leaders, Major Contenders, and Aspirants A summary dashboard assessing each provider’s vision and capability and market impact Providers’ strengths and limitations, along with enterprise sourcing considerations Membership(s) Engineering Research and Development Sourcing and Vendor Management

In today’s competitive industry landscape, technology is vital in the product engineering domain to deliver superior customer experiences. To meet customer needs and develop connected, smart, and autonomous products, enterprises are investing in gen AI, AI/ML, AR/VR, 5G, cloud connectivity, IoT, and cybersecurity. However, rapid innovation, talent shortage, and the need to stay ahead of market trends underscore the significance of establishing a compelling partnership ecosystem to accelerate time-to-market. To address this demand, engineering service providers are enhancing their capabilities to unlock connected products’ data potential, integrate multiple technologies for improved user experiences, and develop technically advanced connected products. This compendium provides accurate, comprehensive, and fact-based snapshots of 21 engineering service providers’ capabilities and offerings. Each profile offers a detailed overview of the provider’s vision, solutions, partnerships, and investments in connected product engineering. Scope Industry: engineering research and development services Geography: global This report is based on Everest Group’s RFI responses in 2023, interactions with leading engineering service providers and their connected product engineering leadership, client reference checks, and an ongoing analysis of the engineering services market Contents In this report, we: Examine connected product engineering services business, including engineering and design, embedded and network engineering, and connected platform engineering capabilities Categorize providers as Leaders, Major Contenders, and Aspirants Assess each provider’s vision, capability, and market impact Compare providers’ key strengths and limitations Membership(s) Engineering Research and Development Sourcing and Vendor Management

In today’s fiercely competitive landscape across industries, technology plays a vital role in both product engineering and delivering exceptional customer experiences. To meet customer needs and enable the development of connected, smart, and autonomous products, enterprises are investing in next-generation technologies such as generative AI, AI/ML, AR/VR, 5G, cloud connectivity, IoT, and cybersecurity. However, the rapid pace of innovation, scarcity of talent at scale, and the need to stay ahead of market trends underscore the importance of establishing a compelling partnership ecosystem to accelerate time-to-market. To address this growing demand from enterprises, engineering service providers are actively enhancing their capabilities and offerings to unlock the potential of data from connected products, integrate multiple technologies for enhanced user experiences, and engineer technically advanced connected products. In this report, the first edition of Everest Group’s Connected Product Engineering Services PEAK Matrix® Assessment with a focus on engineering and design, embedded and network engineering, and connected platform engineering capabilities, we evaluate 21 engineering service providers and their positioning on the PEAK Matrix® framework. The report also examines providers’ key strengths and limitations vis-à-vis enterprise sourcing considerations. Scope Industry: Engineering Research and Development services Geography: global This study is based on RFI responses from providers, interactions with their connected product engineering leadership, client reference checks, and an ongoing analysis of the engineering services market Contents In this report, we examine: Connected Product Engineering Services PEAK Matrix® Assessment 2024 with a focus on engineering and design, embedded and network engineering, and connected platform engineering capabilities Key characteristics of Leaders, Major Contenders, and Aspirants A summary dashboard capturing the relative assessment of each provider’s vision and capability and market impact Providers’ key strengths and limitations vis-à-vis enterprise sourcing considerations Membership(s) Outsourcing Excellence Engineering Research and Development

As we step into 2024, global macroeconomic stability is shrouded in great uncertainty. Ongoing macroeconomic events, trade wars, and an economic slowdown are impacting businesses worldwide, compelling them to approach business growth in the upcoming year with caution. Most organizations are striving to minimize cost/price pressures in response to growing inflationary trends. While the demand and supply gap for conventional engineering skills has eased, new advances in AI have once again resulted in a scarcity of skilled talent. More importantly, there is a shift caused by multiple industries looking to explore and implement generative AI across their value chain, signaling a substantial change in traditional talent requirements. Today, the challenge lies in navigating these uncertain times while addressing the talent gap. This report offers insights into how leading global enterprises have been impacted in 2023 and outlines their strategies for fostering innovation with resilience in these uncertain times. Scope All industries and geographies Services: engineering Contents In this report, we examine: Identify top business challenges and vital business model changes in 2024 Study the outlook and priorities for 2024 Explore key themes that define the enterprise software industry Examine changes to provider portfolios and key provider-related challenges and priorities Membership(s) Engineering Research and Development Software Product Engineering Services Outsourcing Excellence

The semiconductor industry is undergoing transformative shifts shaped by technological advances, economic factors, and global disruptions. Our report provides a comprehensive analysis of the semiconductor industry’s intricate landscape, emphasizing its vital role spanning diverse sectors such as computing, automotive, medical devices, and consumer electronics. Despite encountering challenges, including a reduced growth rate in 2022 and the first half of 2023 due to factors such as high inflation, increased energy costs, and supply chain disruptions, the semiconductor industry remains a vital catalyst for growth in the digital landscape of the future. In this report, we examine the semiconductor market and its various constituents before diving into the industry’s Engineering Research and Development (ER&D) aspects. We identify and analyze the key technology and macroeconomic disruptions and comment on their impact on semiconductor engineering and outsourcing. Scope Industry: Semiconductors All geographies Engineering Research and Development Contents  In this viewpoint, we examine: The components of the semiconductor industry’s value chain The ER&D aspects of the semiconductor industry Technological disruptions impacting the semiconductor industry Macroeconomic factors influencing the semiconductor industry Membership(s) Engineering Research and Development Sourcing and Vendor Management

The growing interest in sustainable and responsible business practices has propelled the widespread adoption of impact sourcing among enterprises and providers. Over time, the advantages of impact sourcing, such as accessing previously untapped talent pools, improving retention rates, and enhancing employer brands, have become increasingly apparent. Providers are actively investing in underserved regions, forging partnerships with local authorities, non-profit organizations, educational institutions, and talent acquisition agencies to create employment opportunities for individuals from disadvantaged communities. Additionally, governmental policies mandating employment, coupled with incentives and tax benefits, alongside the increasing recognition and adoption of Environmental, Social, and Governance (ESG) norms and the United Nations’ Sustainable Development Goals (SDGs), have encouraged businesses to enhance their workforce diversity. Enterprises are demonstrating a growing preference for providers that have implemented impact sourcing programs or other social initiatives. Most enterprises are satisfied with their impact sourcing engagements, covering various aspects such as domain expertise, service portfolio, delivery capabilities, talent, and commercial factors. Some enterprises are partnering with providers to leverage their expertise in developing their own impact sourcing programs, aiming to enhance inclusivity and diversity in their talent management practices. This report relies on primary and secondary data collection, including conversations with various market participants such as enterprise buyers, outsourcing providers, and impact sourcing specialists. The primary objective of this report is to inspire and enable enterprises and providers to incorporate impact sourcing and other inclusive talent management strategies within their organizations. Scope All industries with focus on impact sourcing talent strategy Geography: global Impact sourcing programs of both impact sourcing specialists and traditional providers This report is based on primary and secondary data collection, conversations with market participants (buyers, outsourcing providers, and impact sourcing specialists), and fact-based research Contents In this report, we analyze: The concept of impact sourcing and the comprehensive impact sourcing market landscape, including market size, trends, and talent portfolio Talent management practices of impact sourcing across the hire-to-retire cycle Buyers’ take on impact sourcing and case studies highlighting some impact sourcing engagements The role of technology on the impact sourcing market and the future trajectory of impact sourcing programs Membership(s) Application Services Banking Business Process Banking Information Technology Catalyst™ Cloud and Infrastructure Services Contingent Staffing Contingent Workforce Management Customer Experience Management (CXM) Services, including Contact Center Outsourcing CX Excellence CXM Technology Cybersecurity Data & Analytics Digital Adoption Platforms (DAP) Digital Services Digital Workplace Employee Experience Management (EXM) Platforms Engineering Research and Development Engineering Services Enterprise Platform Services (EPS) Finance and Accounting Financial Services Technology (FinTech) GBS/SS Talent Excellence Healthcare Payer and Provider Business Process Healthcare Payer and Provider Information Technology Human Resources Insurance Technology (InsurTech) IT and Digital Transformation Life Sciences Business Process Life Sciences Information Technology Locations Insider™ Market Vista™ Marketing and Interactive Experience Sourcing and Vendor Management Procurement and Supply Chain Recruitment Retirements Technologies Software Product Engineering Services Sustainability Technology and Services Technology Skills and Talent