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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
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