Economic slowdown hits power chips
The semiconductor market continues to feel the effects of the economic slowdown. New figures from IHS iSuppli suggest that sales of power management ICs will grow more slowly than expected.
This power IC market has also been affected by the disruption caused by the March Japanese earthquake, according to an IHS iSuppli Power Management Market Tracker report from information and analysis provider.
“Soon after the Japanese quake at the tail end of the first quarter, power management suffered a deceleration as manufacturing was halted in several areas of the country, home to many semiconductor plants and operations,” said Marijana Vukicevic, principal analyst for power management at IHS.
“The Japanese situation righted itself by September, but by then the industry was feeling yet another constraint–the decline in consumer spending that started in the middle of the year, a situation not likely to improve until after the first half of 2012,” said Vukicevic.
According to the report, revenue in 2011 from power management semiconductors is expected to reach $33.1bn, up 6.7%. The market is predicted to rise by only 3.9% next year to a projected $34.4bn.
According to IHS iSuppli, a tightening in consumer expenditures has slowed revenue expansion in the power management sector during the third quarter to just 2.3% from the earlier quarter, compared to an 8.8 percent increase during the same time last year.
Among the most promising markets will be that for inverters, anticipated to grow from $4.2bn in 2010 to $7.5bn in 2015.
In terms of device segments, the strongest growth will take place in media tablets, with power management semiconductors expected to post a compound annual growth rate (CAGR) of 63.3%, trailed by the server market at a distant second with a 12% CAGR.
Other significant device segments will be building and home control, notebooks, enterprise voice networks, mobile infrastructure and medical electronics. For all these areas, low-voltage metal-oxide-semiconductor field-effect transistors (MOSFET) represent the main growth opportunity, followed by high-voltage MOSFETs and switching regulators.
Learn more about this topic with the IHS iSuppli Power Management Market Tracker report entitled: “Power Management Semiconductor Market Forecasted to Grow 6.7 Percent in 2011“