World Semiconductors Market Brief

World Semiconductors Market Brief

The global outlook series on Semiconductors provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a bird’s eye view of the rapidly evolving, technology intensive, and cyclic semiconductor industry. Dotted with brief discussions on key product/technology areas, such as, Microprocessors, Digital Signal Processors, Application-Specific Integrated Circuits, Standard Logic Chip, Micro-Controllers, Optoelectronic Integrated Circuits, and Flash Semiconductor, the report offers a firm grasp on the industry’s changing dynamics. The discussions on the global, and the US markets are richly illustrated with 11 data rich tables, in addition to short commentaries on the industry’s outlook. Also provided is a recapitulation of recent mergers, acquisitions, and other noteworthy strategic corporate developments, and product launches. Regional markets discussed include the US, Canada, Japan, Germany, United Kingdom, China, India, Singapore, South Korea, Taiwan, and Brazil, among few others. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 972 companies worldwide.

SEMICONDUCTORS GOS-034
A GLOBAL OUTLOOK, SEPTEMBER 2008


CONTENTS


1. Semiconductor Industry - An Introduction 1
Overview 1
Outlook 1
Table 1: Global Semiconductor Revenues in US$ billion
(2006-2011) 1
Global Semiconductors Industry to Witness Marginal Growth 1
Factors Steering Growth 2
Industry Structure 2
Advent of Fabless-Foundry Model Reinvent SC Industry Composition 2
Shift from IDM to Fabless-Foundry Model 2
Key Industry Participants 2
Independent Device Manufacturers 2
Fabless Chip Company 2
Foundries 3
Material Suppliers 3
Distributors 3

2. Market Analysis 3
By Regional Market 3
Table 2: World Market for Semiconductors by Geographic Region
- USA, Canada, Japan, Europe, Asia-Pacific (excluding Japan),
and Rest of World Markets Independently Analyzed with Annual
Sales Figures in US$ Billion for Years 2005 through 2008 3
By Product Category/Segment 4
Table 3: World Market for Semiconductors by Product
Group/Segment - Discrete, Analog ICs, MOS Memory (DRAM, and
Flash), MOS Micro Devices (Microprocessors, Microcontrollers,
and Digital Signal Processors), MOS Logic and Optoelectronics
Independently Analyzed with Annual Sales Figures in US$
Billion for Years 2005 through 2008 4
By End-Use Segment 5
Table 4: World Market for Semiconductors by End-Use Segment -
Computer, Communication, Consumer, Automotive and Others
Independently Analyzed with Annual Sales Figures in US$
Billion for Years 2005 through 2008 5
Key Players 5
Table 5: Leading Players in the Global Semiconductor Market
(2006): Percentage Breakdown by Value Sales for Intel,
Samsung Electronics, Texas Instruments, Toshiba,
STMicroelectronics, Renesas Technology, AMD, Hynix, NXP,
Freescale, and Others 5

Table 6: Leading Players in the Global NOR Flash Memory
Market (2006): Sales in US$ Million for Spansion, Intel,
STMicroelectronics, Samsung, and Silicon Storage Tech 6

Table 7: World Market for Analog ICs (2006): Percentage
Breakdown of Leading Players by Revenues - Texas Instruments,
STMicroelectronics, Infineon Technologies, NXP
Semiconductors, Analog Devices, National Semiconductor,
Freescale Semiconductor, Maxim Integrated Products, Linear
Technology, and Others 6

Table 8: Leading Players in the Global Dynamic Random Access
Memory (DRAM) Market (Q1 2007): Percentage Breakdown of
Revenues for Samsung, Hynix, Qimonda, Elpida, Micron,
Powerchip, Nanya, ProMos, and Others 6

Table 9: Leading Players in the Global Automotive
Semiconductor Market (2006): Percentage Breakdown of Revenues
for Freescale Semiconductor, Infineon Technologies,
STMicroelectronics, Renesas Technology, NEC Electronics, and
Others 7
Production Scenario 7
Table 10: Global Semiconductor Market (2005): Percentage
Breakdown of Production by Geographic Region - Asia-Pacific/
Rest of World, Japan, North America, and Europe 7

3. Factors Influencing the Market 7
Cyclical Nature of Industry 7
Rapidly Changing Technology 7
End Market Demands 8
Increasing Semiconductor Content 8
Capacity Utilization 8
Globalization 8
Incompatibilities 8
Product Life Cycles 8
Environmental Concerns 9
Economic and Political Uncertainties 9

4. Growth Drivers 9
Consumer Electronics Drives Semiconductor Market Growth 9
Digital Home to Trigger Future Market Expansion 9
Wireless Communications Boosts Sales 9
Personalization - A Key Factor Driving Automotive Semiconductors 9
Increasing Demand for LCD Semiconductors 10
Increasing Role of e-Commerce in Semiconductor Sales 10

5. Issues & Trends 10
Relocation to Low Cost Centers 10
Fast Pace of Changing Technology 10
Chipmakers Explore New Materials for Improved Performance 10
Technology Convergence to Fetch Business for Semiconductor
Industry 10
Industry Paints Glum Semiconductor Equipment Landscape 11
Design Services Gain Steam 11
How Feasible is 450mm? 11

6. Prominent Trends by Product Category 12
Semiconductors (OEM) 12
Investments & Expenditure 12
Semiconductor Devices 12
Market Stand & Regional Rankings 12
Silicon Foundries & Investments 12
Microprocessors 12
Capital Expenditure & Consumer Needs 12
Market Leaders & Supply Slack 12
Digital Signal Processor 13
DSP Market Stance 13
Application-Specific Integrated Circuits 13
Technical Advancements 13
Standard Logic Chip 13
Market Requirements 14
Micro-Controllers 14
8-bit Micro-controllers Market 14
Micro-Controller Unit 14
Demand & Industrial Spending 14
Quality Microprocessors and DSPs - The Focal Point 14
Optoelectronic Integrated Circuits 14

7. Mergers and Acquisitions 15

8. Strategic Corporate Developments 38

9. Product Launches/Innovations 48

10. United States - A Market Perspective 61
Overview 61
Table 11: US Market for Semiconductors by Product
Group/Segment - Discrete, Analog ICs, MOS Memory (DRAM, and
Flash), MOS Micro Devices (Microprocessors, Microcontrollers,
and Digital Signal Processors), MOS Logic and Optoelectronics
Independently Analyzed with Annual Sales Figures in US$
Billion for Years 2005 through 2008 61
Leadership in Innovation 62
Key Challenges 62
Technological Challenges 62
Shift to Overseas Production 62
Competition 62
Fundamental Research &Development 62
Declining US Exports 62
Heavy Reliance on Imports 62
US Education System 62
Investment Climate 63

11. Canada 63
Overview 63
Factors Contributing to the Growth of Semiconductor Market 63

12. A Japanese Market Perspective 63
Evolution of the Japanese Semiconductor Industry 63
Current Market Scenario 64
Leading Players 64
Vulnerabilities in the Japanese Semiconductor Market 64
Opportunities for Foreign Suppliers in Japan 64
Memory Market - An Analysis 65
Semiconductor Assembling and Packaging 65

13. European Market Perspective 65
Overview 65
Integrated Circuits 66
Research & Development Initiatives 66
Growth Potential 66
Communications & Wireless Set-up 66
Rating Factors & Feature Integration 66

13a. Germany 66
Overview 66
Current & Future Analysis 67
Table 12: German Market for Semiconductors by Product Group -
Discrete, Analog ICs, MOS Memory, MOS Micro Devices, MOS
Logic, and Optoelectronic Independently Analyzed with Annual
Sales Figures in US$ Billion for Years 2005 through 2008 67
End-Use Analysis 67
Table 13: Semiconductor Market in Germany (2005): Percentage
Breakdown by End-Use Segment - Data Technology, Automotive
Electronics, Telecommunications, Industrial Electronics, and
Consumer Electronics 67

13b. United Kingdom 68
Overview 68
Table 14: UK Market for Semiconductors by Product Group -
Discrete, Analog ICs, MOS Memory, MOS Micro Devices, MOS
Logic, and Optoelectronic Independently Analyzed with Annual
Sales Figures in US$ Billion for Years 2005 through 2008 68

14. Asia-Pacific 68
Overview 68

14a. China 69
A Rapidly Growing Regional Market 69
Measures Initiated by China to Speed Up Industry Growth 69
Highlights 69
Table 15: Revenues (in US$ billion) for the Chinese
Semiconductor Industry (2004-2010) 70
Factors Driving Chinese Semiconductor Market 70
Low Labor Costs 70
Potential Market for New Entrants 70
Distribution of Semiconductors in China 70
Technological Developments 70
Outlook 71
IC Industry Breakdown 71
Regional Concentration of IC Industry 71
Table 16: Integrated Circuits Market of China (2004 & 2005):
Imports in Value (US$ Billion) and Volume (Billion Units) 72
Semiconductor Manufacturing Equipment Industry 72
Domestic Production 72
Semiconductors - Capital Investments and Expansion Strategies 72
Integrated Circuits - Labor Costs and Outsourcing Stance 72

14b. Taiwan 73
A Hot Spot Market 73
Taiwanese ODMs - On Top of the World 73
Semiconductor Contract Manufacturing 73
Fabless IC Companies 73
Table 17: Leading Fabless Semiconductor Companies in Taiwan
(2005): Ranked by Revenues in NT$ Million for Mediatek,
Novatek, VIA Technologies, Sunplus, Himax, Silicon Integrated
Systems, Realtek, Etron, Philson, and Faraday 74
Fabrication Companies 74
Table 18: Leading Fabrication Companies in Taiwan (2005):
Ranked by Revenues in NT$ Billion for TSMC, UMC, Powerchip
Semiconductor, Nanya Technology, ProMOS Technologies, Winbond
Electronics, Inotera Memories, Macronix International (MXIC),
Mosel Vitelic, and Vanguard International Semiconductor
Company 74

14c. Singapore 75
A Distribution Hub for Asia 75

14d. South Korea 75

14e. India 75
Overview 75
India’s New Semiconductor Policy Seems
Attractive76Semiconductor Consumption 76
Semiconductor Production 76
Semiconductor Design 76
Opportunities for Foreign Players in India 77
Challenges Ahead 77

15. A Latin American Perspective 77

15a. Brazil 77
Present and Futuristic Market Scenario 77


GLOBAL DIRECTORY