The trillion unit market

Semiconductors will be a trillion unit market in 2016, says IC Insights. The number includes both ICs and opto-sensor-discrete devices.

IC Insights - opto-sensor-discretes

Annual semiconductor shipments in excess of one trillion units are forecast to be the “new normal” beginning in 2016.

Take the Electronics Weekly UK Salary Survey 2014 »

Semiconductor unit shipments are forecast to increase to 1,005.8 billion devices in 2016 from 32.6 billion in 1978, which amounts to average annual growth of 9.4% over the 38 year period and demonstrates how increasingly dependent the world is on semiconductors.

From 2008 to 2013, the average annual growth rate of semiconductor units cooled to only 5% due to global economic doldrums, but stronger 8% annual growth is forecast from 2013 to 2018 as global economies regain momentum and a healthier market prevails for electronic systems.

The strongest increase in semiconductor unit growth over the time span shown was 34% in 1984; the biggest decline was 19% in 2001 following the dot-com bust.

Semiconductor unit shipments first topped the 100-billion mark in 1987, exceeded 500-billion units for the first time in 2006 and then surpassed 600-billion units in 2007 before the global financial meltdown and recession caused semiconductor shipments to fall in 2008 and 2009, the only time the industry has experienced a back-to-back decline in unit shipments.

Semiconductor unit growth then surged 25% in 2010, the second-highest growth rate since 1978.  IC Insights forecasts semiconductor unit growth of 8% in 2014, 11% in 2015, and 12% in 2016, which will result in annual shipments surpassing one trillion devices for the first time in 2016.

Interestingly, the percentage split of IC and O-S-D devices within total semiconductor units has remained fairly constant despite advances in integrated circuit technology and the blending of functions to reduce chip count within systems.

In 1978, O-S-D devices accounted for 79% of semiconductor units and ICs represented 21%.  Almost 40 years later in 2016, O-S-D devices are forecast to account for 74% of total semiconductor units, compared to 26% for ICs.

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>