Archive for January, 2019
Thursday, January 24th, 2019
Semiconductor units forecast to increase 7% in 2019 with IC units rising 8%, O-S-D units growing 7%.
Annual semiconductor unit shipments, including integrated circuits and optoelectronics, sensors, and discrete (O-S-D) devices grew 10% in 2018 and surpassed the one trillion unit mark for the first time, based on data presented in the new, 2019 edition of IC Insights’ McClean Report—A Complete Analysis and Forecast of the Integrated Circuit Industry. As shown in Figure 1, semiconductor unit shipments climbed to 1,068.2 billion units in 2018 and are expected to climb to 1,142.6 billion in 2019, which equates to 7% growth for the year. Starting in 1978 with 32.6 billion units and going through 2019, the compound annual growth rate for semiconductor units is forecast to be 9.1%, a very impressive growth figure over 40 years, given the cyclical and often volatile nature of the semiconductor industry.
(more…)
No Comments »
Tuesday, January 22nd, 2019
The 2019-2023 correlation coefficient forecast to reach 0.93, up from 0.86 from 2010-2018.
IC Insights is in the process of completing its forecast and analysis of the IC industry and will present its new findings in The McClean Report 2019, which will be published later this month. Among the semiconductor industry data included in the new 500-page report is an analysis of the correlation between IC market growth and global GDP growth.
Figure 1 depicts the increasingly close correlation between worldwide GDP growth and IC market growth through 2018, as well as IC Insights’ forecast through 2023.
 Figure 1
Over the 2010-2018 timeframe, the correlation coefficient between worldwide GDP growth and IC market growth was 0.86 (0.91 excluding memory in 2017 and 2018), a strong figure given that a perfect positive correlation is 1.0. In the three decades previous to this timeperiod, the correlation coefficient ranged from a relatively weak 0.63 in the early 2000s to a negative correlation (i.e., essentially no correlation) of -0.10 in the 1990s.
IC Insights believes that the increasing number of mergers and acquisitions, leading to fewer major IC manufacturers and suppliers, is one of major changes in the supply base that illustrates the maturing of the industry and has helped foster a closer correlation between worldwide GDP growth and IC market growth. Another reason for a better correlation between worldwide GDP growth and IC market growth is the continued movement to a more consumer driven IC market. IC Insights believes that 20 years ago, about 60% of the IC market was driven by business applications and 40% by consumer applications with those percentages being reversed today. As a result, with a more consumer-oriented environment driving electronic system sales, and in turn IC market growth, the health of the worldwide economy is increasingly important in gauging IC market trends.
Report Details: The 2019 McClean Report
Additional information on IC Insights’ IC market forecasts through 2023 is included in the 2019 edition of The McClean Report—A Complete Analysis and Forecast of the Integrated Circuit Industry, which will be released in January 2019. A subscription to The McClean Report includes free monthly updates from March through November (including a 200+ page Mid-Year Update), and free access to subscriber-only webinars throughout the year. An individual user license to the 2019 edition of The McClean Report is priced at $4,990 and includes an Internet access password. A multi-user worldwide corporate license is available for $7,990.As part of your 2019 subscription, you are entitled to free attendance at a McClean Report half-day seminar (one seat for each copy purchased; company-wide licensees receive five free seats). The remaining schedule for this year’s McClean Report seminar tour is shown below.
Thursday, January 24, 2019 — Sunnyvale, California
(Space is limited, please call for availability)Tuesday, January 29, 2019 — Boston, Massachusetts
(Space is limited, please call for availability)
Tags: GDP, IC, McClean Report, Semiconductors
No Comments »
Thursday, January 17th, 2019
2018 semiconductor M&A valued at $23.2 billion, down from the record $107.3 billion in 2015.
IC Insights is in the process of completing its forecast and analysis of the IC industry and will present its new findings in The McClean Report 2019, which will be published later this month. Among the semiconductor industry data included in the new 400+ page report is an analysis of semiconductor merger and acquisition agreements.
The historic flood of merger and acquisition agreements that swept through the semiconductor industry in 2015 and 2016 slowed significantly in 2017 and then eased back further in 2018, but the total value of M&A deals reached in the last year was still nearly more than twice the annual average during the first half of this decade. Acquisition agreements reached in 2018 for semiconductor companies, business units, product lines, and related assets had a combined value of $23.2 billion compared to $28.1 billion in 2017, based on data compiled by IC Insights. The values of M&A deals struck in these years were significantly less than the record-high $107.3 billion set in 2015 (Figure 1)
 Figure 1 The original 2016 M&A total of $100.4 billion was lowered by $41.1 billion to $59.3 billion because several major acquisition agreements were not completed, including the largest proposed deal ever in semiconductor history—Qualcomm’s planned purchase of NXP Semiconductor for $39 billion, which was raised to $44 billion before being canceled in July 2018. Prior to the explosion of semiconductor acquisitions that erupted four years ago, M&A agreements in the chip industry had a total annual average value of $12.6 billion in the 2010-2014 timeperiod.
(more…)
Tags: M&A, McClean Report, mergers and acquitisition, Semiconductors
No Comments »
Tuesday, January 15th, 2019
Top 10 companies held 60% of worldwide semiconductor market in 2018, up from 45% in 2008.
IC Insights is in the process of completing its forecast and analysis of the IC industry and will present its new findings in The McClean Report 2019, which will be published later this month. Among the semiconductor industry data included in the new 400+ page report is an analysis of the top-50 semiconductor suppliers.
Research included in the new McClean Report shows that the world’s leading semiconductor suppliers significantly increased their marketshare over the past decade. The top 5 semiconductor suppliers accounted for 47% of the world’s semiconductor sales in 2018, an increase of 14 percentage points from 10 years earlier (Figure 1). In total, the 2018 top 50 suppliers represented 89% of the total $514.0 billion worldwide semiconductor market last year, up seven percentage points from the 82% share the top 50 companies held in 2008.
As shown, the top 5, top 10, and top 25 companies’ share of the 2018 worldwide semiconductor market increased 14, 15, and 11 percentage points, respectively, as compared to 10 years earlier in 2008. With additional mergers and acquisitions expected over the next few years, IC Insights believes that the consolidation could raise the shares of the top suppliers to even loftier levels.
There was a wide 66-percentage point range of year-over-year growth rates among the top 50 semiconductor suppliers last year, from +56% for Nanya to -10% for Fujitsu. Nanya rode a surge of demand for its DRAM devices to post its great full-year results. However, evidence of a cool down in the memory market last year was evident in the company’s quarterly sales results, which saw its sales drop from $826 million in 2Q18 to $550 million in 4Q18 (a 33% plunge). Overall, four of the top seven growth companies last year—Nanya, SK Hynix, Micron, and Samsung—were major memory suppliers. Although Nanya registered the highest percentage increase, Samsung had the largest dollar volume semiconductor sales increase, a whopping one-year jump of $17.0 billion!
(more…)
Tags: McClean Report, micron, Nanya, samsung, Semiconductors, SK Hynix
No Comments »
Friday, January 11th, 2019
2019 to be third year of greater than $25.0B in spending for flash, topping both DRAM, foundry.
IC Insights is in the process of completing its forecast and analysis of the IC industry and will present its new findings in The McClean Report 2019, which will be published later this month. Among the semiconductor industry data included in the new 400+ page report is an in-depth analysis of semiconductor capital spending.
The semiconductor industry is expected to allocate the largest portion of its capex spending for flash memory again in 2019, marking the third consecutive year that flash has led all other segments in spending (Figure 1). Flash memory trailed the foundry segment in capex in 2016, but took an extra-large jump in 2017, growing 92% to $27.6 billion and increased another 16% to $31.9 billion in 2018 as manufacturers expanded and upgraded their production lines for 3D NAND to meet growing demand. With much of the expansion now completed or expected to be wrapped up in 2019, flash capex is forecast to decline 18% this year to $26.0 billion, which still is a very healthy spending level.
Figure 1
(more…)
Tags: DRAM, Flash, Forecast, foundry, Foundry Market, McClean Report
No Comments »
Tuesday, January 8th, 2019
Cryptocurrency boom in 1H18 helped China’s pure-play foundry market surge 41% last year.
IC Insights is in the process of completing its forecast and analysis of the IC industry and will present its new findings in The McClean Report 2019, which will be published later this month. Among the semiconductor industry data included in the new 400+ page report is an in-depth analysis of the IC foundry market and its suppliers.
With the recent rise of the fabless IC companies in China, the demand for foundry services has also risen in that country. In total, pure-play foundry sales in China jumped by 30% in 2017 to $7.6 billion, triple the 9% increase for the total pure-play foundry market that year. Moreover, in 2018, pure-play foundry sales to China surged by an amazing 41%, over 8x the 5% increase for the total pure-play foundry market last year.
(more…)
Tags: America, asia-, China, Europe, Forecast, foundry, Foundry Market, IC manufacturing, Japan, McClean Report, Semiconductors
No Comments »
|
