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© carabiner dreamstime.com Business | October 29, 2012

Communications hot application for ICs

In a major shift for the IC industry, communications applications are forecast to surpass computer applications as the leading end-use for ICs starting in 2014 and lasting through at least 2016, according IC Insights.
In 2014 and lasting through IC Insights’ forecast in 2016, communications will be the largest end-use application in every major geographic region of the world. The communications IC market is forecast to grow 9.2% in 2012 to $90.0 billion, from $82.4 billion in 2011, and increase 11.7% to $100.5 billion in 2013, breaking the $100-billion level for the first time.

The total communications IC market is forecast to reach $114.4 billion in 2014, 4.6% more than the $109.4 billion computer IC market. From 2011 to 2016, the communications IC market is forecast to grow by a cumulative annual growth rate (CAGR) of 14.1%, reaching $159.5 billion at the end of the forecast period.

The communications segment accounted for 31.2% of worldwide IC sales in 2011 and the computer end-use segment 41.7%. By 2016, these two segments will flip-flop, with communications forecast to represent 42.2% of the total IC market, compared to 34.0% for the computer segment.
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