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Power chips to breach Rs.56,035.24 crore

Posted: 25 Oct 2010     Print Version  Bookmark and Share

Keywords:Power IC market  driver ICs  power management 

The lull is finally over for power IC market which posted a decline of over 14 per cent in 2009. According to IMS Research, the power management and driver IC market is growing by 20 per cent to over Rs.56,035.24 crore ($12 billion) in 2010. It also projects a strong annual growth for the next four years.

All sixteen of the power IC markets analysed in 2010 have outperformed previous growth predictions. Strong growth is projected to continue into 2011 and for most products through to 2014, driven by strong forecast demand in applications such as lighting, PC notebooks, servers and cellular infrastructure. It has however been questioned by some involved in the industry as to whether growth is being driven by real underlying demand.

Ryan Sanderson, senior market analyst for IMS Research's Power and Energy group, commented "Growth in the first half of 2010 was much stronger than many power semiconductor suppliers had predicted and has continued into the second half of the year. Whilst demand for end equipment certainly accelerated in 2010, there is also an element of over-spending; which has been driven by low capacity causing the lead times for many components to be extended. This has inflated revenue growth and also helped to stabilise average selling prices".

Sanderson added, "IMS Research predicts increasing demand in 2011, another year when revenues will increase more than the historical average. Demand for consumer appliances such as notebooks and flat panel TVs remains high; whilst the industrial market continues to recover, driving further demand.10% growth a year is projected for 2012 to 2014."

Further findings from "The World Market for Power Management & Driver ICs – 2010" identified Texas Instruments as the leading supplier, with over 10 per cent of the 2009 world market. Of the top five suppliers in the market, which account for almost 40 percent of the world total, three lost market share from 2008 to 2009.

For more statistics and forecasts, click here.





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