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LEDs shine through dull semiconductor market

Posted: 27 Nov 2012     Print Version  Bookmark and Share

Keywords:LED  semiconductor  chip 

LED market is the only bright spot in 2012 while the growth of the rest of the industrial electronics market will fall short of expectations this year, says market research company iSuppli.

Second-quarter LED sales for Philips climbed 37 per cent from year-ago levels, and other LED lamp suppliers like Cree, LG Innotek and Samsung LED also enjoyed solid second-quarter results.

There were few other manufacturers that performed well during the period, scattered throughout various segments. Among them were Honeywell with 8 per cent growth, driven by commercial avionics; General Electric with an industrial sales increase in the double digits, on the strength of a 27 per cent rise in transportation; and Alstom, ABB, Delta and Mindray in other industrial sales segments.

In contrast, many chip companies were affected by the downturn, and many of them do a big deal of their business in industrial market segments. Examples are Texas Instruments, Analog Devices Inc., Infineon Technologies, Atmel, Fuji Electric and Linear Technology. Manufacturers that have lowered their 2012 outlook because of weaker orders include Danaher, Siemens, Bombardier, Agilent, Vestas and Johnson Controls.

This year will bring the slowest growth for the next four years, with revenue set to rise in a range from 7 to 12 per cent during each of the next four years. Revenue is forecast to reach Rs.2.37 lakh crore ($44.8 billion) by 2016, said the firm.

"The chip revenue forecast was dialled back after economic headwinds got stronger in the second quarter, affecting several top semiconductor suppliers and original equipment manufacturers of industrial electronics," said Jacobo Carrasco-Heres, industrial electronics analyst at IHS. "And when hoped-for growth did not pan out as expected and sales eventually came out lower, the market was downgraded to reflect the changed circumstances."

For more statistics and forecasts, click here.





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