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Communications, auto ICs to peak through 2016

Posted: 30 Oct 2012     Print Version  Bookmark and Share

Keywords:Automotive  communication  consumer chips 

Automotive and communication chips will out-pace the total semiconductor market in the years through 2016, according to IC Insights. Computer devices, once the driving force behind semiconductors, drop back on the second-to-last place.

According to a recent IC Insight overview, the market for communications chips will grow almost at the speed of radio waves—at 14.1 per cent CAGR for the next four years. By 2016, this market will have reached a total value of Rs.8.70 lakh crore ($160 billion), almost twice as big (94 per cent) as in 2011.

Albeit much smaller—at a total volume of Rs.1.52 lakh crore ($28 billion)—the automotive chip market is driven by the trend to "electronize" the vehicles. Largest market is Europe accounting for 37 per cent of the total demand in 2012. For the years to come, Asian car manufacturers are on the outside lane and will almost catch up to the European market by 2016. IC Insights predicts an average growth rate of 9 per cent for the automotive chip market.

IC market growth

Industrial and medical IC markets benefit from an ageing population and the demand for healthcare and medical applications they are creating. With a particularly high share of analogue chips (45 per cent) this market is poised to grow by 5 per cent annually through 2016.

The computer chip market is forecast to represent 34 per cent of the total IC market in 2016, down from almost 42 per cent in 2011. A 12 per cent decline in computer memory devices market is expected to cause a dip of 9 per cent for the entire computer IC market in 2012. Nevertheless, IC Insight researchers predict an average growth rate of 3.1 per cent for this market through 2016.

The growth in the consumer chips market will be the slowest of all end-use categories. With its CAGR of 1.9 per cent, its growth is significantly slower than the total market average of 7.4 per cent, driven down by weakness in Japan.

For more statistics and forecasts, click here.

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