Analog IC Market Goes on Rollercoaster Ride

Article By : George Leopold

In the analog IC market, TI continues to lead the pack, as others gear up for 5G, IoT and auto applications...

Industrial applications, smartphones and other consumer electronics devices along with automotive use cases are driving an otherwise shrinking analog IC market that saw declining 2019 sales for all but one of the top suppliers.

U.S.-China trade frictions were among the reasons for global sales declines, IC Insights reported. In some regions, especially Europe, the automotive sector is cushioning the analog market from steeper declines.

The analyst said market leader Texas Instruments retained its grip on the analog IC sector, accounting for 19 percent of global sales. That 1-percentage point increased over the previous year is more than the combined market share for competitors Analog Devices (10 percent) and Infineon (7 percent).

Still, TI’s year-on-year sales declined 5 percent, totaling $10.22 billion. The market tracker pegged the global analog IC market at $55.2 billion in 2019, up from just under $51 billion the previous year.

Source: IC Insights

Of the top ten analog IC vendors in IC Insights rankings released this week, only Microchip registered annual sales and market share growth. The Arizona chip maker’s revenues grow 10 percent year-on-year to $1.53 billion while its market share ticked up one percentage point.

The sales and market share increases were attributed to completion of Microchip’s acquisition of Microsemi in 2018, “which helped provide it with a nice boost to full-year analog sales in 2019,” IC Insights noted.

Elsewhere, Infineon remains the top European supplier of analog chips on the strength of its automotive, power management and industrial sales. Automotive accounted for 44 percent of Infineon’s 2019 sales, followed by power management (30 percent). For all categories, Infineon’s 2019 analog sales slipped a single percentage point to $3.75 billion.

Among the biggest decliners last year were Skyworks Solutions, Maxim and ON Semi, all of which suffered a 13-percent decline in annual analog sales.

IC Insights attributed much of No. 5 Skyworks’ decline to ongoing U.S.-China trade frictions, noting that the chip maker’s manufacturing customers have a “large presence in China.” Most make smartphones along with other communications equipment and computing components.

As trade relations worsen, the market watcher noted that Skyworks has ramped up its analog chipset portfolio in anticipation of the launch of 5G smartphones and other infrastructure applications based on the next-generation wireless standard.

Meanwhile, second-ranked Analog Devices said it is focusing on “sensor-to-cloud” applications for edge computing and industrial Internet of Things applications. Industrial applications accounted for half of ADI’s 2019 sales, which totaled $5.16 billion.

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