Home > 2014 banner year for global industrial semiconductors, IHS report says

2014 banner year for global industrial semiconductors, IHS report says

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article image Top 10 industrial semiconductor suppliers of 2014

IHS Technology Inc. reports that global industrial semiconductor revenues grew by 18 percent year over year in 2014.

Global industrial semiconductor revenue in 2014 totalled $40.4 billion, up from $34.3 billion in 2013. The year-over-year increase follows solid growth of 13 percent in 2013, a decline of 3 percent in 2012 and 12 percent growth in 2011. The strong performance achieved in 2014 represents the highest annual growth rate since the 36 percent boom in 2010.

There has been gradual acceleration in the global economy, led by the United States and China, which continued to lift industrial equipment demand. According to Robbie Galoso, principal analyst, IHS Technology, broad-based growth in industrial electronics gained momentum in the semiconductor industry, especially in products used for factory automation control, commercial avionics, LED lighting, digital internet-protocol cameras, climate control, renewable energy, traction, wireless application-specific testers and oil and gas exploration equipment.

New information from the IHS Industrial Semiconductors service indicates that the industrial electronics category is expected to continue its strong momentum as the top application-revenue driver in the semiconductor industry through 2019. Industrial semiconductor revenue growth is expected to increase 7 percent in 2015, with continued growth forecast for many segments. However, this growth will be more moderate, due mainly to slowed growth in memory, logic and analogue products used in building and home control, military and civil aerospace, and test and measurement.

With improving financial results in the long term, the industrial semiconductor market is expected to be on track to reach 6 percent compound annual growth rate (CAGR) between 2014 and 2019.

2014 top 10 company ranking variations

Texas Instruments maintained its strong position as the largest industrial semiconductor supplier in the world, followed by STMicroelectronics and Infineon Technologies. Micron Technology and ON Semiconductor also feature in the top 10 industrial semiconductor supplier ranking list in 2014.

Many of the companies in the top 10 rankings have entered the list based on strategic acquisitions made during the year. Micron entered the list on the back of their successful product-longevity program, which reinforced their commitment to the industrial market and leveraged the company’s 2013 acquisition of Elpida Memory. ON Semiconductor was boosted by its acquisition of Aptina, a leading complementary metal-oxide semiconductor (CMOS) image sensor supplier in the industrial market, which moved the merged company into tenth position in the rankings. Both Maxim Integrated Products and Cree were displaced by new entrants Micron and ON Semiconductor in the top 10 rankings.

Galoso observes that strategic acquisitions will continue to play a major role in shaping the overall semiconductor market rankings in key industrial semiconductor segments. Infineon and NXP will soon upgrade their positions among the top semiconductor suppliers in 2015, due to their acquisitions of International Rectifier and Freescale Semiconductor respectively.

Among the top 10 semiconductor suppliers, nine companies achieved growth in 2014 with seven posting double-digit growth. Out of the top 10 companies, only one, Renesas Electronics, suffered a decline, as the Japanese semiconductor market and suppliers continued to struggle.

Optical Semiconductor delivered the strongest performance, thanks to the continued strength of the LED market. The highest semiconductor device absolute revenue growth from 2014 to 2019 will come from LEDs, which is expected to grow from $6.3 billion to $12.6 billion, stemming from the global general lighting LED lighting boom triggered by the ban on incandescent bulbs in most countries in 2014.

Discrete power transistors, thyristors, rectifiers and power diodes are expected to grow from $6 billion to $7.3 billion, due to the policy shift toward energy efficiency. Microcontrollers (MCUs) are also expected to experience robust growth in the long-term, increasing from $4.3 billion to $5.8 billion, because of advances in power efficiency and integration features.

Out of more than 27 semiconductor segments, 26 achieved increased year-over-year growth in 2014. All seven major semiconductor components grew last year, led by optical, analogue integrated circuits (ICs), logic ICs, discretes, microcomponent ICs, memory ICs, and sensors and actuators. Both analogue ICs and logic application-specific ICs achieved the strongest turnaround in growth, moving from a relatively flat performance in 2013 to over 20 percent growth last year. 

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