Microelectronics

As most end markets continue to decline and consumers around the globe scale back their spending, MEMS devices are showing that they are “recession proof” by growing in all market segments, and experiencing the best growth in booming segments of tablets and smart phones.

The engineering innovations that have led to PSiP, PCiP and PwrSoC designs will have an impact on different levels and functions of existing dc-dc power converter ICs and modules. PSiP and PCiP (and eventually PwrSoC) products are expected to encroach on the current levels occupied by LDOs, switching regulators, and controllers/FETs. The best opportunities are in communications and computers, where unit compound annual growth rates (CAGRs) are expected to range between 35% and 50% between 2011 and 2016; and revenue CAGRs will be around 23% to 38% over the forecast period. Industrial applications will see good growth, as well, around 55% for unit sales and 44% for dollar sales.

The market for intelligent systems--those enabled with high-performance microprocessors, connectivity, and high level operating systems--will grow from 19% of all major electronic system unit shipments in 2010 to more than one third of all systems by 2015, according to the latest report on the emerging intelligent systems market.

The access to MEMS microphone original design will be more and more important in the future and we can expect both strong R&D projects and also M&A to get access to MEMS design and manufacturing capabilities. This report offers a more in-depth discussion on this scope and key strategic evolution of the industry.

Although the prolonged severity of the recent economic slowdown, and depressed key-end use segments have elicited decline in value sales for System-On-a-Chip (SoC), the market is nevertheless expected to recover poise in the medium-to-long term period and register US$39.4 billion in sales by the year 2015. Primary factors fingered to drive growth in the market include, expansion of microcontroller based SoCs business, increase in demand for advanced SoC designs, recovery in key end-use markets post recession and technology innovations. Encouraging demand from developing nations, particularly Asia-Pacific also augur well for the market.

World MEMS Devices market is forecast to reach US$9.2 billion by the year 2015. Recovery in passenger car production coupled with depleting inventory buildup in the supply chain on wings of improving consumer demand, have revived MEMS shipments. Investments in new product development, innovation, and expansion of production capacity augur well for the future of the market. The automobile industry, which represents a major high volume end-user of MEMS technologies, was the worst affected by the recession with a punishing fall in vehicle sales pushing auto majors into the red. Although shielded to a degree by mandatory regulatory safety standards, especially in Europe and North America, automotive MEMS applications witnessed weakened business prospects as a result of the crushing effect of depressed automotive production.

The year 2009 was difficult for several MEMS manufacturers, but 2010 saw a major return to growth for the entire industry. Going into 2011, global sales of both Sensors and MEMs are projected to reach nearly $11.1 billion in global revenue and 9.6 billion unit shipments. Over the next five years both sales and shipments are expected to experience average annual growth of 12 percent. Meanwhile, average selling prices will grow just slightly, reaching $1.15 in 2011 and growing slightly to $1.18 by 2016.

Currently, 3D IC technology is used in reference to 3D packaging solutions, wafer level packaging, and the concept of monolithic 3D IC. The choice of fabrication and bonding technology for 3D IC depends on the requirements of the system. As an interconnect medium, electronic industry has progressed from wire-bond interconnects to introduce flip-chip technology, and later through-silicon vias (TSV) as an interconnect technique. Apart from performance gains, the factors, which need to be taken into consideration include time to market and cost of the particular 3D solution. There still is a variety of challenges that need to be solved before this technology reaches the wide market place, such as lack of mature fabrication processes or capital equipment cost.

Microcontrollers are one of the most versatile products in the semiconductor market. They are found in all five market segments and in several product families spanning from 8-bit products to 32-bit processors used in high end embedded applications. The microcontroller market is forecast to reach over $16 billion worldwide in 2011 and is predicted to grow at a compound annual growth rate of 9 percent over the next five years.

The DSP market has been thriving for some time now thanks to the mobile phone application market. Today, the demand for smart phones that requires a microprocessor for the applications, has significantly limited the growth opportunities for DSP used in this space. Suppliers have responded to this by offering ARM Processors with integrated DSP function. DSPs are used in many other application markets including wireless infrastructure, automotive navigation and imaging systems. This tracker provides demand statistics for DSPs. Sales of these products will reach close to $6 billion this year.