Posts Tagged ‘IC’
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
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Monday, December 10th, 2018
Despite some high-profile setbacks with autonomous vehicles, auto electronic systems growth projects well; remains a hotbed for semiconductor growth.
Sales of automotive electronic systems are forecast to increase 7.0% in 2018 and 6.3% in 2019, the highest growth rate in both years among the six major end-use applications for semiconductors. Figure 1 shows that sales of automotive-related electronic systems are forecast to increase to $152 billion in 2018 from $142 billion in 2017, and are forecast to rise to $162 billion in 2019. Furthermore, automotive electronic systems are expected to enjoy a compound annual growth rate (CAGR) of 6.4% from 2017 through 2021, again topping all other major system categories, based on recent findings by IC Insights.
Figure 1
Overall, the automotive segment is expected to account for 9.4% of the $1.62 trillion total worldwide electronic systems market in 2018 (Figure 2), a slight increase from 9.1% in 2017. Automotive has increased only incrementally over the years, and is forecast to show only marginal gains as a percent of the total electronic systems market through 2021, when it is forecast to account for 9.9% of global electronic systems sales. Though accounting for a rather small percentage of total electronic system marketshare in 2018, (larger only than the government/military category), automotive is expected to be the fastest-growing segment through 2021.
Figure 2
Technology features that are focused on self-driving (autonomous) vehicles, ADAS, vehicle-to-vehicle (V2V) communications, on-board safety, convenience, and environmental features, as well as ongoing interest in electric vehicles, continues to lift the market for automotive electronics systems, despite some highly publicized accidents involving self-driving vehicles this year that were at least partly blamed on technology miscues.
New advancements are more widely available onboard mid range and entry-level cars and as aftermarket products, which has further raised automotive system growth in recent years. In the semiconductor world, this is particularly good news for makers of analog ICs, MCUs, and sensors since a great number of all of these devices are required in most of these automotive systems. It is worth noting that the Automotive—Special Purpose Logic category is forecast to increase 29% this year—second only to the DRAM market, and the Automotive—Application-Specific Analog market is forecast to jump 14% this year—as backup cameras, blind-spot (lane departure) detectors, and other “intelligent” systems are mandated or otherwise being added to more vehicles. Meanwhile, memory (specifically, DRAM and flash memory) is increasingly playing a more critical role in the development of new automotive system solutions used in vehicles.
Report Details: The McClean Report 2019
The 2019 edition of The McClean Report—A Complete Analysis and Forecast of the Integrated Circuit Industry, will be released in January 2019. A subscription to The McClean Report includes free monthly updates from March through November (including a 250+ 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 seminar (one seat for each copy purchased; company-wide licensees receive five free seats). The schedule for next year’s seminar tour is shown below. Tuesday, January 22, 2019 — Scottsdale, Arizona
Thursday, January 24, 2019 — Sunnyvale, California
Tuesday, January 29, 2019 — Boston, Massachusetts
To review additional information about IC Insights’ new and existing market research reports and services please visit our website: www.icinsights.com.
More Information Contact
For more information regarding this Research Bulletin, please contact Bill McClean, President at IC Insights. Phone: +1-480-348-1133, email: bill@icinsights.com
Tags: automotive, communications, computer, DRAM, Foundry Market, IC, IC manufacturing, ICManufacturing, McClean Report, MCU, roadmap, Semiconductors, sensors
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Tuesday, September 18th, 2018
13 IC products forecast to show double-digit growth, led by a 39% surge in DRAM sales.
In its Mid-Year Update to the 2018 McClean Report, IC Insights updated its forecast of sales growth for each of the 33 major IC product categories defined by WSTS (Figure 1). IC Insights now projects that seven product categories will exceed the 16% growth rate expected from the total IC market this year. For the second consecutive year, the DRAM market is forecast to top all IC product segments with 39% growth. Overall, 13 product categories are forecast to experience double-digit growth and 28 total IC product categories are expected to post positive growth this year, down slightly from 29 segments in 2017.
Rising average selling prices for DRAM continued to boost the DRAM market through the first half of the year and into August. However, IC Insights believes the DRAM ASP (and subsequent market growth) is at or near its peak, as a big rise in DRAM capital expenditures for planned capacity upgrades and expansions is likely put the brakes on steep market growth beginning in 2019.
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Tags: DRAM, DSP, IC, IC manufacturing, McClean Report, MCU, NAND, SRAM, wireless comm
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Tuesday, July 31st, 2018
Correlation coefficient expected to reach a very high level of 0.95 in the 2018-2022 timeframe.
In its recently released Mid-Year Update to The McClean Report 2018, IC Insights forecasts that the 2018-2022 global GDP and IC market correlation coefficient will reach 0.95, up from 0.88 in the 2010-2017 time period. IC Insights depicts the increasingly close correlation between worldwide GDP growth and IC market growth through 2017, as well as its forecast through 2022, in Figure 1.
As shown, over the 2010-2017 timeframe, the correlation coefficient between worldwide GDP growth and IC market growth was 0.88, a strong figure given that a perfect 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 illustrate the maturing of the industry that is helping foster a closer correlation between worldwide GDP growth and IC market growth. Other factors include the strong movement to the fab-lite business model and a declining capex as a percent of sales ratio, all trends that are indicative of dramatic changes to the semiconductor industry that are likely to lead to less volatile market cycles over the long term.
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Tags: IC, IC manufacturing, ICManufacturing, McClean Report, Semiconductors, Worldwide GDP
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Thursday, May 31st, 2018
18.5% forecast increase in 2018 driven by systems monitoring and control, safety, ADAS, convenience, and growth of autonomous driving. Continued rise of memory ASP adds to growth.
Consumer demand and government mandates for electronic systems that improve vehicle performance, that add comfort and convenience, and that warn, detect, and take corrective measures to keep drivers safe and alert are being added to new cars each year. This system growth, along with rising prices for memory components within them, are expected to raise the automotive IC market 18.5% this year to a new record high of $32.3 billion, surpassing the previous record of $27.2 billion set last year (Figure 1), according to IC Insights’ soon to be released Update to the 2018 IC Market Drivers report. If the forecast holds, it would mark the third consecutive year of double-digit growth for the automotive IC market.
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Tags: automotive, IC, IC manufacturing, ICManufacturing
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Wednesday, April 11th, 2018
Top 25 companies held more than three-fourths of worldwide semiconductor market.
Research included in the April Update to the 2018 edition of IC Insights’ 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 43% of the world’s semiconductor sales in 2017, an increase of 10 percentage points from 10 years earlier (Figure 1). In total, the 2017 top-50 suppliers represented 88% of the total $444.7 billion worldwide semiconductor market last year, up 12 percentage points from the 76% share the top 50 companies held in 2007.
Tags: IC, ICManufacturing, McClean Report, Semiconductors
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Wednesday, February 21st, 2018
Despite increasing costs of development, IC manufacturers are still making great strides.
The success and proliferation of integrated circuits has largely hinged on the ability of IC manufacturers to continue offering more performance and functionality for the money. Driving down the cost of ICs (on a per-function or per-performance basis) is inescapably tied to a growing arsenal of technologies and wafer-fab manufacturing disciplines as mainstream CMOS processes reach their theoretical, practical, and economic limits. Among the many levers being pulled by IC designers and manufacturers are: feature-size reductions, introduction of new materials and transistor structures, migration to larger-diameter silicon wafers, higher throughput in fab equipment, increased factory automation, three-dimensional integration of circuitry and chips, and advanced IC packaging and holistic system-driven design approaches.
For logic-oriented processes, companies are fabricating leading-edge devices such as high-performance microprocessors, low-power application processors, and other advanced logic devices using the 14nm and 10nm generations (Figure 1). There is more variety than ever among the processes companies offer, making it challenging to compare them in a fair and useful way. Moreover, “plus” or derivative versions of each process generation and half steps between major nodes have become regular occurrences.
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Tags: IC, IC manufacturing, ICManufacturing, roadmap, Semiconductors, technology
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Thursday, February 1st, 2018
Though accounting for less than half of total MPU sales, data-handling cellphones, tablets, and MPUs for embedded processing applications to keep MPU market active through 2022.
Microprocessors, which first appeared in the early 1970s as 4-bit computing devices for calculators, are among the most complex integrated circuits on the market today. During the past four decades, powerful microprocessors have evolved into highly parallel multi-core 64-bit designs that contain all the functions of a computer’s central processing unit (CPU) as well as a growing number of system-level functions and accelerator blocks for graphics, video, and emerging artificial intelligence (AI) applications. MPUs are the “brains” of personal computers, servers, and large mainframes, but they can also be used for embedded processing in a wide range of systems, such as networking gear, computer peripherals, medical and industrial equipment, cars, televisions, set-top boxes, video-game consoles, wearable products and Internet of Things applications. The recently released 2018 edition of IC Insights’ McClean Report shows that the fastest growing types of microprocessors in the last five years have been mobile system-on-chip (SoC) designs for tablets and data-handling cellphones and MPUs used in embedded-processing applications (Figure 1).
 Figure 1 (more…)
Tags: Acquisitions, AMD, chip, IC, Mergers, MobileSystem, MPU, Semiconductors
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Tuesday, January 23rd, 2018
Numerous smaller deals were made but “megadeals” were scarce last year.
The historic flood of merger and acquisition agreements that swept through the semiconductor industry in 2015 and 2016 slowed significantly in 2017, but the total value of M&A deals reached in the year was still more than twice the annual average in the first half of this decade, according to IC Insights’ new 2018 McClean Report, which becomes available this month. Subscribers to The McClean Report can attend one of the upcoming half-day seminars (January 23 in Scottsdale, AZ; January 25 in Sunnyvale, CA; and January 30 in Boston, MA) that discuss the highlights of the report free of charge.In 2017, about two dozen acquisition agreements were reached for semiconductor companies, business units, product lines, and related assets with a combined value of $27.7 billion compared to the record-high $107.3 billion set in 2015 and the $99.8 billion total in 2016 (Figure 1). Prior to the explosion of semiconductor acquisitions that erupted several years ago, M&A agreements in the chip industry had a total annual average value of about $12.6 billion between 2010 and 2015.
Figure 1Two large acquisition agreements accounted for 87% of the M&A total in 2017, and without them, the year would have been subpar in terms of the typical annual value of announced transactions. The falloff in the value of semiconductor acquisition agreements in 2017 suggests that the feverish pace of M&A deals is finally cooling off. M&A mania erupted in 2015 when semiconductor acquisitions accelerated because a growing number of companies began buying other chip businesses to offset slow growth rates in major end-use applications (such as smartphones, PCs, and tablets) and to expand their reach into huge new market opportunities, like the Internet of Things (IoT), wearable systems, and highly “intelligent” embedded electronics, including the growing amount of automated driver-assist capabilities in new cars and fully autonomous vehicles in the not-so-distant future.
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Tags: Acquisitions, IC, Mergers, Semiconductors
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