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2013 forecast for electronics markets

January 14, 2013

Throughout 2012, the expectations for global economic growth have consistently deteriorated.  Global GDP growth is now expected to expand by an estimated 2.6%, very close to the global recession threshold of 2.5% and well below the long-term average growth rate of 3.5%. However, the forecast for worldwide GDP in 2013 is 3.2% growth. Though better than 2012, this would still be 0.3 points below the long-term average growth rate.

The worldwide market for optoelectronics, sensors/actuators and discrete semiconductors grew 2% this year to $58.2 billion from 2011’s $57.4 billion, according to IC Insights. The market research firm earlier forecast 7% growth for the chip market segment, but economic conditions caused revenue to flatten during 2012. IC Insights forecasts healthier growth in 2013 for all three product categories.

Annual growth for energy-harvesting devices used in wireless sensor networks will top 50% for the next five years, leaping from $19 million in 2012 to $227 million in 2017, according to Yole Développement. The leading applications for energy harvesters are commercial buildings and industrial facilities, the market research firm said.

Late in 2012, Databeans reported that the semiconductor market to the Mil/Aero industry declined from 2011 to 2012 to just under $2.9 billion worldwide, primarily due to this latest round of budget cuts and the corresponding industry consolidation. There will be some modest growth of 4% over the next five years. COTS products will experience the mil/aero market’s fastest adoption rates, with a CAGR of 6% over the next five years.

Two leading suppliers of gallium-nitride (GaN) devices and integrated circuits (ICs) will receive government assistance from the United States Defense Advanced Research Projects Agency (DARPA), in areas that should help improve the power-handling capabilities of this semiconductor material. TriQuint Semiconductor has received a $2.7 million DARPA contract to triple the power-handling capabilities of GaN devices, while RFMD won a $2.1 million DARPA contract to enhance the thermal efficiency of GaN.

According to a new technical market research report from Electronics CA, global sales from compound semiconductor components totalled nearly $25.5 billion in 2011 and should surpass $27 billion in 2012. Total sales are expected to reach nearly $47.5 billion in 2017 after increasing at a five-year compound annual growth rate (CAGR) of 11.9%.

Hittite Microwave Corporation, a US semiconductor company, is to establish two operations in Cork. Nineteen new jobs will be created in Research and Development (R&D) activities while eleven people will be employed at the company’s new International Operations Centre. The investments are supported by the Irish Government through IDA Ireland.  The products that will be designed at the Cork facility will be high performance components for use in telecommunications and sensor systems across a variety of applications.  International Operations Centre in Cork will manage non-US business in closer proximity to its customers to enhance local market presence. As part of the centre a global supply chain and finance team will also be located in Cork.

According to Yole, the highly technical MEMS packaging, assembly, test & calibration market will reach a $2.3B value by 2016, boosted by the growth of the combo inertial sensors and the diffusion of sensors in every consumer electronic product.

In 2012, Nanium reported shipping its 200 millionth embedded wafer-level ball grid array package, used to contain wireless communications chips. The company reached the milestone in less than 24 months.

In its “Status of the CMOS Image Sensors Industry” report, Yole Développement expects the CMOS image sensors market to grow at an 11% CAGR in revenue in the 2012 – 2017 period, growing from $6.6B in 2012 to $11B in 2017.

Cellular phones are expected to account for 24% of the IC industry’s revenues in 2012, and that share is forecast to reach nearly 32% in 2016, according to the 2013 IC Market Drivers report. The new report predicts that cellphone IC sales will exceed standard PC IC dollar volumes for the first time in 2013—$70.7 billion versus $65.1 billion for integrated circuits used in standard PCs.

With $2.49 billion in cash on hand, Infineon Technologies is actively considering acquisitions and stock buybacks, according to a report from Sueddeutsche Zeitung quoting CEO Reinhard Ploss. “I’m aiming for several small acquisitions, or even a medium-sized acquisition,” Ploss said in the interview, mentioning chip companies in electrical generation and other industrial applications in particular. Infineon may also try to buy the patents of Qimonda, its former spinoff in memory chips.

Provided by A Longford – PandA Europe


From → Finance, News

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