This page contains a Flash digital edition of a book.
Page 18


ManageMent www.us- tech.com Strong Growth Projected for Global Industrial Semiconductors By Robbie Galoso, Principal Analyst, IHS Technology


come. According to research firm IHS1, worldwide industrial semicon- ductor revenues grew by 18 percent year over year in 2014. Global indus- trial semiconductor revenue in 2014 totaled $40.4 billion, compared to $34.3 billion in 2013. This year-over- year increase follows solid growth of 13 percent in 2013, a decline of 3 per- cent in 2012, and 12-percent growth in 2011. The strong performance in 2014 represents the highest annual growth rate since a 36-percent boom in 2010. Our analysis points toward a


G


gradual acceleration in the global economy, led by the United States and China, which has continued to lift industrial equipment demand. Broad-based growth in industrial electronics gained momentum in the semiconductor industry, especially in products used for factory automation control, commercial avionics, LED lighting, digital


internet-protocol


lobal industrial markets for semiconductors appear strong for at least one-half decade to


cameras, climate control, renewable energy, traction, wireless application- specific testers, and oil and gas explo- ration equipment. Based on the latest information


from the IHS Industrial Semiconduc- tors service, the industrial electronics category is expected to continue its strong momentum through 2019 as the top application-revenue driver in the semiconductor industry. Industri- al semiconductor revenue growth is expected to increase 7 percent in 2015, with continued growth forecast for many segments; however, more moderate growth is expected in 2015, due mainly to slowed growth in the memory, logic, and analog products used in building and home control ap- plications, military and civil aero- space applications, and test-and- measurement applications. With im- proving financial results in the long term, the industrial semiconductor market is expected to be on track to reach a 6-percent compound annual growth rate (CAGR) between 2014 and 2019.


Top Growth Companies Texas Instruments2 maintained


its strong position as the world’s largest industrial semiconductor sup- plier, followed by STMicroelectronics3 and Infineon Technologies4. Micron Technology5 and ON Semiconductor6 both made their way into the top-10 in- dustrial semiconductor supplier rank- ing list in 2014. Micron jumped into the top 10 last year, due to the success of its product-longevity program, which reinforced its commitment to the industrial market and leveraged the company’s 2013 acquisition of Elp- ida Memory. Micron’s product longevi- ty program continued to grow quickly in 2014, which helped the company be- come the undisputed global industrial memory chip supplier. ON Semiconductor was boosted


by its acquisition of Aptina, a leading silicon complementary-metal-oxide- semiconductor (CMOS) image sensor supplier for the industrial market, which moved the merged company in- to tenth position in the rankings. Be- cause both Micron and ON Semicon- ductor made their way into the top 10 rankings, Maxim Integrated Prod- ucts7 and Cree, Inc.8 were displaced. Strategic acquisitions will con-


tinue to play a major role in shaping the overall semiconductor market rankings in key industrial semicon- ductor segments. Infineon and NXP will soon upgrade their positions among the top semiconductor suppli- ers in 2015, due to their acquisitions of International Rectifier and Freescale Semiconductor respectively. The combined industrial semi-


conductor revenues for NXP Semi- conductors10 and Freescale Semicon- ductor11 last year would amount to $1.3 billion. A joint NXP/Freescale combination would be ranked in sixth place, behind Analog Devices12 ; NXP was previously ranked 16th while Freescale was ranked 17th. The com- bined company will catapult into the top 10 for major industrial applica- tions, with impressive share gains re- alized, especially in applications in manufacturing and process automa- tion, military and civil aerospace, power and energy, and medical elec- tronics. On the other hand, the com- bined Infineon/International Rectifi- er entity would generate $2.3 billion in industrial semiconductor rev- enues, which would catapult the merged company into second place in last year’s rankings. Among the top 10 semiconduc-


tor suppliers, nine of the companies achieved growth in 2014 and seven of those companies posted double-digit growth gains. Out of the top 10 companies, on-


ly one, Renesas Electronics13, suf- fered a decline, as the Japanese semi- conductor market and its suppliers continued to struggle.


Strong Optical Semicon Market The optical semiconductor mar-


ket area delivered the strongest per- formance, thanks to the continued strength of the light-emitting-diode (LED) market. The highest semicon- ductor device absolute revenue growth from 2014 to 2019 will come


Among the top 10 semicon- ductor suppliers, nine com- panies achieved growth in 2014 and seven of those


companies posted double- digit growth gains. Out of


the top 10 companies, only one, Renesas Electronics, suffered a decline, as the Japanese semiconductor market and its suppliers continued to struggle.


from LEDs, a market segment which is expected to grow from $6.3 billion to $12.6 billion due to the global gen- eral lighting LED lighting boom, with most countries banning incandescent bulbs in 2014. Markets for discrete power transistors, thyristors, rectifi- er diodes, and power diodes are ex- pected to grow from $6 billion to $7.3 billion, due to the policy shift toward energy efficiency. Markets for micro- controller units (MCUs) are also ex- pected to experience robust growth in the long-term, growing from $4.3 bil- lion to $5.8 billion, because of ad- vances in power efficiency and inte- gration features. Of the more than 27 semiconduc-


tor market segments, 26 achieved in- creased year-over-year growth in 2014. All seven major semiconductor technology areas grew last year, led by optical devices, analog integrated cir- cuits (ICs), logic ICs, discrete devices, microcomponent ICs, memory ICs, and sensors and actuators. Both ana- log ICs and logic application-specific ICs (ASICs) achieved the strongest turnaround in growth, moving from relatively flat growth in 2013 to more than 20-percent growth last year. Contact: IHS, Inc., Englewood,


CO, % 844-301-7334 or +44-1344-328300 E-mail: AmericasLeads@ihs.com Web: www.ihs.com r


1 (www.ihs.com) 2 (www.ti.com) 3 (www.st.com) 4 (www.infineon.com) 5 (www.micron.com) 6 (www.onsemi.com) 7 (www.maximintegrated.com) 8 (www.cee.com) 9 (www.renesas.com) 10 (www.nxp.com) 11 (www.freescale.com) 12 (www.analog.com) 13 (www.renesas.com)


July, 2015


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88