Semiconductors

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing and design, today announced that worldwide sales of semiconductors reached $24.79 billion for the month of September 2012, a 2 percent increase from the prior month when sales were $24.30 billion. Sales from the third quarter of 2012 totaled $74.4 billion - a 1.8 percent jump compared to the previous quarter - but total 2012 sales were down 4.7 percent compared to the same time last year. All monthly sales numbers represent a three-month moving average.  

The top 20 semiconductor suppliers are forecast to register a 1% decline in sales this year (about $3.2 billion), one point better than the rate of decline expected for the total worldwide semiconductor market in 2012. The only expected movement with regard to the top 5 spots in the 2012 ranking is that fabless supplier Qualcomm is forecast to register a 30% surge in sales this year and move up three positions to replace TI as the fourth largest semiconductor supplier.  In contrast, Freescale is forecast to register a 14% decline in semiconductor revenue this year and drop down three positions from 16th in 2011 to 19th in the 2012 ranking.

The semiconductor industry is well known for the rapid pace of technical innovation. Memory companies go through half-pitch shrinks yearly and logic companies go through node changes every two to three years. Looming on the horizon is a wide variety of new devices, materials and equipment: MRAM, PCRAM, RRAM, Multigate, FDSOI, III-V/Ge channels, BST, STO and the list goes on. If you need to understand and plan for these transitions the IC Knowledge Strategic Products are the solutions for you. The Strategic Products present you with easy to use models based on the International Technology Roadmap for Semiconductors (ITRS) that fully map out the implications of these technology transitions.

According to a new technical market research report, GLOBAL MARKETS AND TECHNOLOGIES FOR COMPOUND SEMICONDUCTORS, global sales from compound semiconductor components totaled nearly $25.5 billion in 2011 and should surpass $27 billion in 2012. Total sales are expected to reach nearly $47.5 billion in 2017 after increasing at a five-year compound annual growth rate (CAGR) of 11.9%.

The global market for Secure Digital (SD) Memory Cards is forecast to reach US$21.3 billion by the year 2018, driven by urgent requirement for scalability, higher speed and storage capacity, portability and ease of use. The market is primarily sustained by heavy demand from smartphones as well as basic mobile handsets that lack sufficient memory capabilities. In terms of growth, mobile sector with the Micro SD format will witness faster growth vis-à-vis the digital imaging market for SD standard card format, given the different life cycles stages of the devices.

World market for Superconductors is projected to reach US$8.8 billion by the year 2017. Growth will be primarily driven by encouraging technology developments and breakthroughs in applications in the power sector and the ensuing successful commercialization and widespread adoption of superconducting magnetic energy storage systems (SMES). Robust demand from Asian countries, particularly China, Korea and India, also augurs well for the market.

Unity Opto Technology Co., Ltd., I-Chiun Precision Industry Co., Ltd., Leadlink Optics Inc., Lextar Electronics Corp. and Formosa Epitaxy Inc. are expected to have brisk sales last month, with some even expected to set new highs.

Taiwan Semiconductor Manufacturing Co. (TSMC) has completed its planning for deploying 450mm wafer production. Intel Corp., TSMC, Samsung Electronics Co., Ltd., International Business Machines Corp. (IBM), and GlobalFoundry Inc. have formed an alliance called G450C to push for 450mm technology. 2012 is the beginning year for 450mm technology push and the group will set standards for 450mm wafer production by integrating resources of world leading chipmakers and with most economic ways.

Global Semiconductor Foundry revenues are projected to reach US$60 billion by 2018, powered by increasing demand from hi-technology end-devices such as smartphones, tablet PCs, and ultrabooks. Market dynamics are expected to change in future as more number of players ramp up new capacities for leading-edge technologies to meet the growing demand.

Spending on research and development by semiconductor companies worldwide is expected to grow 10% in 2012 to a record-high $53.4 billion compared to the current peak of $48.7 billion set in 2011, according to the Mid-Year Update of  2012 McClean Report.  The increase will lift R&D spending by chip companies to 16.2% of total semiconductor sales in 2012, which are now forecast to rise 3% to $329.8 billion from revenues of $321.4 billion in 2011.