Components | April 04, 2011
SoC market to reach USD 39.4<em>bn</em> by 2015
Although the prolonged severity of the recent economic slowdown, and depressed key-end use segments have elicited decline in value sales for System-On-a-Chip (SoC), the market is nevertheless expected to recover poise in the medium-to-long term period and register USD 39.4 billion in sales by the year 2015.
Primary factors fingered to drive growth in the market include, expansion of Microcontroller based SoCs business, increase in demand for advanced SoC designs, recovery in key end-use markets post recession and technology innovations. Encouraging demand from developing nations, particularly Asia-Pacific also augur well for the market, writes electronics.ca. Publications. The chip making industry, which has become an indispensable part of modern electronics with almost every man-made electronic device being integrated with an embedded microchip or integrated circuit (IC), has however suffered the worst in 2008 and 2009 due to the economic recession. SoC, an important part of the IC design ecosystem, is extremely sensitive to both economic and technology pressures. Fortunes in the SoC market are closely tied to computer, consumer electronics, wireless communications, wired communications and automotive electronics segments, all of which have witnessed significant disruptions in business activity/prospects due to the economic slowdown. Therefore, the deceleration in growth comes as no surprise. The recession has resulted in receding corporate and consumer demand for semiconductor integrated electronics. Demand for PCs, optical disk drives, scanners, printers, storage devices, PC connectivity products and gaming consoles especially plummeted to hurting levels in the consumer market, which is not surprising given the volatility of this market in comparison to the corporate/enterprise sector. New construction and installation of metro-level communications networks dipped impacting demand for semiconductor chips like Ethernet chips. Communication infrastructure spending, with the exception of select developing countries like China, and India, has witnessed steep falls thus impacting SoC demand in this end-use sector. However, the impact of recession on SoC market has been largely short-lived, and less severe in comparison to the impact on other chip technologies. This is largely because the underlying economics of packaging greater functionalities into smaller and yet more power-efficient devices, continue to drive the need for greater integration within a semiconductor device, which in turn accelerates the demand for SoCs. Post recession, renewed emphasis on tapping into growth opportunities in the chip industry will elicit a shift in focus away from cost reduction towards technology innovation, with ensuing benefits echoing downstream into the SoC segment. As a result, SoCs are expected to emerge into a pivotal technology, which will find increased adoption for advanced computers, smartphones, and other mobile devices and handsets, new-age consumer electronic devices and automotive electronics among others. As end-use sectors begin replenishing depleted inventories, the semiconductor industry is expected to get a new lease of life with opportunities trickling down into the SoC market segment. Resurgence and recovery in enterprise spending will unleash pent-up demand for SoC’s in the computing end-use sector, as companies restore postponed investments, and hitherto deferred purchase decisions, to provide commercial opportunities. The consumer electronic devices end-use market is expected to witness a relatively quicker recovery with demand for LCD TVs, netbooks, Blu-ray players and smartphones, among others expected to rebound. Continued strong government spending on weaponry, and intelligence systems as part of policy commitments, bode well for SoCs in the military and defense market. The scope of the market will become bigger and richer over the next few years, driven by expansion of microcontroller based SoCs business into four unique segments i.e., commodity controllers, basic SoCs, advanced multicore SoCs, and value multicore SoCs. As stated by the new market research report, the US continues to remain the largest regional market for SoCs. Asia-Pacific represents the fastest growing regional market, displaying a CAGR of about 8.02% over the analysis period. Increasing infrastructure spends, particularly in communication infrastructure in key developing markets such as China and India are expected to drive demand SoCs in the region. By product type, market for SoCs Based on Embedded IP represents the largest segment, holding a lion’s share of the market.
Broadcom to supply wireless components to Apple Certain subsidiaries of Broadcom have entered into two separate multi-year statement of work agreements with Apple Inc.
TowerJazz, Cadence, and KPI to open analog design lab TowerJazz, Igor Sikorsky Kyiv Polytechnic Institute (KPI), the national technical university of Ukraine, and Cadence Design Systems, are collaborating to open a new analog circuit design lab in Ukraine.
STMico CEO: ‘We closed 2019 with a solid fourth quarter’ The semiconductor manufacturer reported 2019 fourth quarter new revenues of USD 2.75 billion, gross margin of 39.3%, operating margin of 16.7% and new income of USD 392 million.
Car supplier Harman plans to close German site The automotive supplier Harman apparently wants to stick to its plans and close the plant in Straubing (Germany). Between 625 and 700 jobs are affected.
Sponsored content by CMLCML manufactures Metal Substrate solutions Printed circuit boards (PCBs) plays an important role in our day to day life. Whether it’s the car you’re driving, the phone that you’re scrolling through or computers that you’re sending emails from. What happens when you use heat generating components on a PCB? That’s right, cooling is needed!
Camtek receives orders for 34 systems from five manufacturers Camtek says it has received orders for 34 systems for 2D inspection of CMOS image sensors from five different manufacturers, of which 25 are from two customers.
Changes to Next Biometrics' management Next Biometrics' CFO, Knut Stålen, will step down from his position on the last day of February 2020. Knut Stålen has been with NEXT Biometrics since 2014.
Foxconn and Heraeus sign MoU Foxconn Technology Group and Heraeus have signed a Memorandum of Understanding for a strategic cooperation within the space of 5G.
BAE to pick up Collins Aerospace’s GPS business and Raytheon’s ATR business BAE Systems has reached definitive agreements for the proposed acquisitions of Collins Aerospace’s military Global Positioning System (GPS) business and Raytheon’s Airborne Tactical Radios (ATR) business.
JEOL Ltd. acquires Integrated Dynamic Electron Solutions JEOL Ltd. , manufacturer of semiconductor equipment and other industrial instruments and equipment, announced the acquisition of Integrated Dynamic Electron Solutions Inc. (IDES), an entrepreneurial venture specializing in technologies related to transmission electron microscopy (TEM).
NEXT receives major order for Indian government program NEXT Biometrics has received an order for UIDAI and STQC certified fingerprint biometric readers in India with a value of USD 750,000.
Cadence completes acquisition of AWR from NI Cadence Design Systems, Inc. has completed the acquisition of AWR Corporation from National Instruments Corporation.
Fiat Chrysler and Foxconn plans EV joint venture A new competitor in the industry for electric vehicles are in the making.
Collins Aerospace inks multimillion-dollar space contract Collins Aerospace Systems has signed a contract with Lockheed Martin to provide critical subsystems to support production of NASA’s Orion spacecraft fleet for Artemis missions III through VIII.
Imagination Technologies expands with new European design centre Imagination Technologies has opened a new design centre in Timisoara, Romania. The centre will focus on IP designed for artificial intelligence (AI) and computer vision.
AKI Electronic becomes Schurter Electronics As part of the further integration into the Schurter Group, AKI Electronic spol. s r.o. changes its name to SCHURTER Electronics spol. s r.o.
From Bosch to Silicon Mobility - Kallenbach takes the helm Automotive semiconductor company, Silicon Mobility, has appointed former Robert Bosch GmbH executive Rainer Kallenbach as CEO of the company as of January 6, 2020. The current CEO Bruno Paucard will remain with the company as COO and on the Board of Directors.
NEXT Biometrics reorganises - reduces headcount NEXT Biometrics says it is executing a program to optimise the organisation and cost base with its strategic priorities and market opportunities; which also translates to layoffs
LPKF delivers laser system to semiconductor industry customer In December, LPKF delivered – for the first time – a highly automated version of its LIDE system for integration into a semiconductor fab to an unnamed semiconductor manufacturers.
ROHM company SiCrystal & STMicro ink wafer supply deal ROHM and STMicroelectronics have signed a multi-year silicon carbide (SiC) wafers supply agreement with SiCrystal, a ROHM group company having a top share of SiC wafers in Europe.
Cadence expands collaboration with Broadcom Cadence Design Systems says it has expanded its collaboration with Broadcom Inc. for the creation of semiconductor solutions targeting next-generation networking, broadband, enterprise storage, wireless and industrial applications.
Marvell expands R&D footprint in India Marvell has announced the addition of its new facility in Bangalore, part of Marvell India Private Limited, the company’s second largest research and development (R&D) effort spanning three sites – Bangalore, Pune and Hyderabad.
imec spin-off raises €4,5 million in funding MICLEDI Microdisplays, the latest spin-off of imec, has raised EUR 4,5 million seed capital from imec.xpand, with participation of PMV and FIDIMEC.
Synopsys to acquire certain IP assets of INVECAS The acquisition broadens the company’s IP portfolio and adds a team of experienced R&D engineers to the company’s development department.Load more news