IC product segments that exceed total IC market growth in 2013

The complete list of all 34 major IC product categories ranked by forecast growth rate for 2013 is shown in Figure 1. Ten product categories, led by Tablet MPUs and Cellphone Application MPUs, are forecast to exceed the 6% growth rate forecast for the total IC market this year. Five categories are forecast to enjoy double-digit growth. The number of categories with positive growth is expected to more than double to 22 in 2013 from 10 in 2012. Consumer-driven mobile media devices, particularly smartphones and tablet computers, are forecast to keep the Tablet MPU (50%) and Cellphone Application MPU (28%) segments at the top of the growth list for the third consecutive year. Other IC categories that support mobile systems—including NAND flash (12%) and special-purpose logic devices—are expected to enjoy better-than-industry-average growth in 2013, as well. Due to increasing demand for higher levels of precision in embedded-processing systems and the growth in connectivity using the Internet, the market for 32-bit MCUs is also forecast to outpace total IC market growth in 2013. Embedded applications in medical/health systems and smartcards have helped boost the 32-bit MCU market. In the automotive world, demand for 32-bit MCUs is being driven by “intelligent” car systems such as driver information systems and semi-autonomous driving features such as self-parking, advanced cruise controls, and collision-avoidance systems. In the next few years, complex 32-bit MCUs are expected to account for over 25% of the processing power in vehicles. After back-to-back years of steep declines in 2011 and 2012, the DRAM market is forecast to increase 9% in 2013, three points more than the total IC market. DRAM unit growth is expected to increase only 2 percent, but the overall average selling price is forecast to jump 7% this year.

Product Category	2012 Growth	2013F Growth
Tablet MPUs	60%	50%
Cellphone App MPUs	41%	28%
Wired Telecom - Spcl Purpose Logic/MPR	17%	13%
NAND Flash	6%	12%
Wired telecom - App Specific Analog	24%	11%
DRAM	-10%	9%
Wireless Telecom - Spcl Purpose Logic/MPR	9%	9%
Auto - Spcl Purpose Logic/MPR	2%	7%
Consumer - Special Purpose Logic/MPR	12%	7%
32-bit MCU	4%	7%
Total IC Market	-2%	6%
Std PC, Server, etc. MPUs*	-5%	5%
Auto - App-Specific Analog	-3%	5%
Display Drivers	1%	3%
PLDs	-7%	3%
General Purpose Logic	0%	2%
Industrial/ Other - Spcl Purpose Logic/MPR	-2%	2%
Voltage Reg. & Ref.	-3%	2%
Wireless Telecom - App Specific Analog	-5%	2%
Industrial Other - App Specific Analog	-7%	2%
Interface	-15%	2%
4-/8-bit MCU	-4%	1%
Data Conversion	-12%	1%
EEPROM / Other	-6%	-2%
Amplifiers / Comparators	-13%	-2%
DSP	-28%	-2%
16-bit MCU	-6%	-3%
Computer - App Specific Analog	-17%	-4%
Consumer - App Specific Analog	-9%	-4%
Standard Cell	-9%	-4%
Computer & Peripherals - Spcl Purpose Logic / MPR	-16%	-6%
ROM/ EFROM	-25%	-9%
Gate Array	-18%	-10%
NOR Flash	-23%	-15%
SRAM	-24%	-15%

*Includes embedded processors, but does not include graphics processors. / Source IC Insights. In five of the past six years (2007-2012) the DRAM market declined, which took its toll on weaker suppliers. Fewer suppliers in the marketplace mean fewer competitors trying to undercut each other’s prices in order to gain marketshare and enhances the likelihood of a more stable pricing environment in the coming year. Interestingly, in a world that is increasingly wireless, two IC categories of “wired” telecom ICs are forecast to grow faster than the total IC market. Wired Telecom—Special Purpose Logic/MPR and Wired Telecom—Application-Specific Analog are forecast to grow by 13% and 11%, respectively.