© wrangler dreamstime.com Analysis | May 21, 2015
Industrial and automotive end markets fueled rapid growth
After less-than-stellar market growth in 2013, the market for power management semiconductors surged last year.
Even after a seasonal revenue decline of roughly 5 percent in the fourth quarter (Q4) of 2014, global power semiconductor market revenues grew nearly 7 percent, according to IHS Inc. Based on information from the IHS Power Management Competitive Landscaping Tool (PMCLT) part of the IHS Power Management Intelligence Service, demand was particularly strong for power semiconductors in the automotive and industrial end markets. Increased demand was led by an increase in power semiconductors used in powertrain, infotainment and advanced driver assistance systems (ADAS) applications in automotive applications. In addition, home control, automation, and energy generation and distribution were the fastest-growing applications in the industrial segment. However, other end markets -- such as consumer, data process, wired and wireless communication -- experienced weaker overall demand in 2014 compared to the previous year. Strategy matters “Companies that aligned their marketing and investment strategies to address industrial and automotive applications performed very well in 2014,” said Jonathan Liao, senior analyst of power semiconductors for IHS. “Texas Instruments, Analog Devices, NXP and Infineon were some of the growth leaders with strong product portfolio offerings in the industrial and automotive categories. By capturing growth momentum, and outshining their competitors, these companies increased their power management revenues more than 10 percent in 2014. On the other hand, companies that were not as successful in transitioning from consumer and wireless communications end markets ended with much lower growth rate – and sometimes even lost revenue in 2014.” China, United States, industrial and automotive sectors In terms of regional focus, the United States and China were two of the strongest markets for power management companies to focus on last year. In 2014, 30 percent of all power management semiconductors were shipped to China, due to the high concentration of original equipment manufacturers (OEMs) for wireless handsets and consumer-electronics assemblies. In the industrial end market last year, China consumed nearly 16 percent of all industrial semiconductors. This trend is expected to strengthen this year, as China continues to invest in manufacturing, automation, smart cities, transportation and power infrastructure. Automotive sector growth continues, as semiconductor content per car increases at a rate that offsets slowing growth in automotive manufacturing in China. In the United States, IHS predicts that the economy will grow nearly 3 percent in 2015. Consumer confidence and spending remain strong: jobs growth is consistent, household finances were the best they have been since early part of the decade and fuel prices have dropped. All of these factors contributed to increased household spending. “As consumer spending increases, the overall sales of consumer electronics, computers, wireless handsets, and automobiles may also increase. End market growth will also benefit the sales of power semiconductor components,” Liao said. “To ensure continued growth, successful companies must focus on the industrial and automotive end markets in the near term,” Liao said. Global industrial semiconductor revenue is expected to grow 5 percent in 2015, with increased sales in the construction and home-control markets, as well as in energy generation and distribution, and automation markets. Some of the top growth industrial segments in the near term are LED lighting, Internet protocol (IP) cameras, digital video surveillance products, and smart grid solutions. In the automotive industry, the trend of electrification of cars continues. Connected cars, ADAS, and infotainment systems are all expected to cause increases in the number of semiconductors in each automobile shipped. Growth in this sector will help increase near-term revenues for power semiconductors in the automotive segment. An interesting year ahead In 2015 IHS expects the power management semiconductor market to continue its positive growth of 5 percent to 7 percent. However the competitive landscape will drastically change. The following two key acquisitions will have the strongest impact on the market: first, in January 2015, Infineon completed the acquisition of International Rectifier; second, this year, NXP is scheduled to complete its acquisition of Freescale Semiconductors later this year. These two mergers will enable Infineon and NXP to be more competitive in technology, manufacturing efficiency, pricing, and marketing strategy. IHS expects a very competitive contest for the market-leader position in the power management semiconductor segment in the coming year.
Second install for EFI at Mid America Display Silicon Valley’s EFI will install a second EFI Nozomi C18000 single-pass inkjet, direct-to-board printer later this month to Mid America Display.
Ron Jakeman of Electrolube looks back at a successful 2019 Electrolube has been growing, both in terms of its footprint and financially, for a number of years not; Ron Jakeman details the company's progress.
Etteplan and Scanfil to start strategic cooperation in joint customer projects Engineering company Etteplan and contract manufacturer Scanfil have today agreed to enter a strategic partnership in Finland.
The lovechild of ACE Production and InterSelect Carlos Bouras of Nordson Select gave us the rundown of the result of the integration and combination of ACE Production and InterSelect GmbH - the new Integra.
Sponsored content by Nordson ASYMTEKStart-to-finish conformal coating with reliability and efficiency Nordson ASYMTEK’s flexible, modular, Panorama™ S-Line delivers conformal coating process control in a space-saving footprint with overlapping line processes that minimize manufacturing floor space. This innovative, patent-pending line layout trims 50% of the line’s length by using the lower compartment in each piece of equipment for functional use. Combined with Nordson ASYMTEK’s global support, this complete conformal coating line delivers quality, product reliability, efficiency, and safety for all your conformal coating applications.
American Battery Metals, U.S. lawmakers convene American Battery Metals Corporation has completed a series of meetings with lawmakers and personnel in the Department of Energy and Department of the Interior in Washington, D.C., to discuss issues critical to the domestic battery production and storage industry.
Cogiscan, Critical Mfg. form strategic partnership Quebec, Canada-based Cogiscan and Critical Manufacturing, headquartered in Portugal, have forged a strategic partnership to deliver smart factory solutions for electronics manufacturers.
Collins Aerospace expanding in North Africa Collins Aerospace Systems, a unit of United Technologies Corp., has taken the first step toward the expansion of its existing site in Casablanca, Morocco.
The advantage of Vantage - Garrett Wong tells the tale Nordson Asymtek's Garrett Wong gives us a rundown of the business year and also details the Vantage Advantage
Saki’s Eddie Ichiyama details a very successful business year Eddie ichiyama from Saki gave us an update on how 2019 has been for the company and also shared some details on the recent expansion in the Czech Republic.
The ripple effect of Enrico Krog Iversen while being an active part in creating one of the fastest growing robotics companies in modern time might have been enough for most people, that does not seem to have slowed down a certain Danish entrepreneur.
Yamaha's Ichiro Arimoto on the business year and the company's new ventures Evertiq had the opportunity to talk to Ichiro Arimoto, General Manager of Yamaha Motor Europe, about the business year and the company's new ventures.
Mycronic, Indium forge strategic partnership Indium Corporation has announced a strategic partnership with Sweden-based Mycronic, to develop no-clean and water soluble solder pastes for jetting applications.
Sponsored content by NCAB Group Benelux B.V.Failure is not an option for a PCB More than 30% of the Gerbers NCAB Group Benelux B.V. reviews, have problems. However, the PCB are integrated in key end-user product with more and more High Tech PCB. We are here to support you on the new technologies growth to maintain a high reliability and quality. Contact us to review it together.
SCHMID delivers PlasmaLine to Hofstetter PCB SCHMID announced it has installed the company’s first PlasmaLine comprising ICP etch & sputter deposition of its Korean JV SCHMID AVACO at Hofstetter PCB AG in Switzerland.
Cobot market to reach USD 9+ billion by 2025 A new report from Tractica is forecasting continued rapid growth for the global collaborative robot (cobot) market over the next few years, reaching revenue of USD 9.7 billion by 2025.
MixComm scores USD 8+ million in series B round New Jersey-based fabless semiconductor company MixComm has secured USD 8.6 million in series B funding led by existing investor, Kairos Ventures.
SIA elects 2020 leadership The Semiconductor Industry Association (SIA) Board of Directors has elected ON Semiconductor CEO Keith Jackson as its 2020 Chair and Qorvo CEO Robert Bruggeworth as its 2020 Vice Chair.
Sponsored content by SourcengineComponent Aggregators vs E-Commerce Marketplaces What is the difference between electronic component aggregators and a marketplace?
67% of a buyer’s journey is now done digitally. Learn how marketplaces emerged as full-cycle procurement platforms and challenged the traditional component aggregators.
Si wafer shipments recede for fourth straight quarter Worldwide silicon wafer area shipments slid for the fourth consecutive quarter of 2019, according to the SEMI Silicon Manufacturers Group (SMG) in its most recent quarterly analysis of the industry.
Decline in Q4 DRAM contract prices lessens as buying momentum recovers According to the latest analysis from the DRAMeXchange research division of TrendForce, Q4 DRAM ASP is as of yet undergoing a slight QoQ decline, but this decline has shrunk down to 5%.
Technica forms growth-focused equity fund San Jose-based Technica USA has reached an agreement on an equity investment centered on future growth for the global PCB fab and assembly supplier.
IHS Markit: 5G economy in the trillions by 2035 The IHS Markit 5G Economy Study, commissioned by Qualcomm Technologies Inc., is forecasting that 5G will generate USD 13.2 trillion in sales enablement by 2035.
Sponsored content by EsemdaContract manufacturer Esemda opens new facility in Vilnius and expands EMS The new facility has been built with reserved space for future expansions. As Esemda constantly grows, it is of great importance to be able to rapidly increase production capacity in large volumes.
ZEUS Battery partnering with Kruvand Associates ZEUS Battery Products and Texas-based Kruvand Associates Inc. have come to a formal agreement on a collaboration that began in January and covers Texas, Arkansas, Oklahoma, Louisiana, New Mexico, Arizona and Mexico.
EPP with a new owner The company announces that is has found itself an ideal buyer – Photonics Systems Group – a manufacturer of micro-materials processing machines. With this takeover, PSG is strengthening is operations in the electronics industry and also laying the foundation for further growth.
Volkswagen starts pre-production e-mobility plant in China The new plant of the SAIC VOLKSWAGEN joint venture has been completed. It is purely built for the production of all electric vehicles on Volkswagen’s Modular Electric Drive Matrix (MEB).
Kongsberg Maritime divests KM Contros GmbH Following a strategic review, Kongsberg Maritime AS (KM) has decided to divest KM Contros GmbH (Contros) to AML Oceanographic Ltd. (AML).Load more news