Decline Projected For Analog IC market in Q4


74xx series standard logic ICs (Texas Instrume...

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SAN FRANCISCO—Fourth quarter analog semiconductor revenue is projected to be roughly $10.3 billion, a decline of 7 percent compared to the third quarter, according to the latest forecast from market research firm Databeans Inc.

Databeans (Reon, Nev.) projects that the analog market will rebound slightly in the first quarter of 2011 to reach slightly more than $10.6 billion globally.

As a whole, pricing will remain consistent and even with additional capacity coming online, Databeans said. There should be little change in pricing from 2010 going into 2011 as most of the realized cost for analog is in design and not necessarily in manufacturing, according to the firm.

Markets for “general purpose” analog—chips designed with a “standard cell” approach found across all application markets—will experience a milder decline in the fourth quarter, declining 6 percent sequentially to $2.5 billion, according to Databeans’ forecast. General purpose analog markets should return to third quarter levels by the beginning of 2011, Databeans predicts.

The largest general purpose analog market—Power ICs—will experience the lightest declines of any analog product in the fourth quarter, dropping just 2 percent to $2.45 billion in total sales, according to the forecast.

The analog ASSP market, which is far more vulnerable to sudden ups and downs in specific end markets, is projected to decline by 8 percent in the fourth quarter to $5.6 billion, according to Databeans. Analog ASSPs are expected to rebound slightly in the first quarter of 2011, growing 2 percent, the firm said.
The computer analog segment will experience the greatest declines of any individual analog market, dropping by approximately 17 percent from the third quarter to the fourth quarter, Databeans predicted. Industrial analog will follow with another 14 percent decline, while communications will experience the mildest declines of any analog ASSP category, falling 3 percent sequentially in the fourth quarter, the firm said.

The analog and mixed signal markets remain relatively concentrated in terms of market share, with the top 10 suppliers easily owning a majority share of the industry, Databeans said. This has kept competition somewhat lower and made large swings in market share uncommon, the firm said. Texas Instruments Inc., STMicroelectronics NV and Infineon Technologies AG remain among the list of overall market leaders in analog ICs, according to Databeans.

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About Georges Abi-Aad

CEO, electronic engineer with MBA in marketing. Multicultural; French citizen born in Lebanon working in the Middle East and fluent in French, English and Arabic. I have more than 30 years of proven experience in the Middle East with European know how. I am good in reorganization and in Global strategic management business. I am a dependable leader with an open approach in working with people, forging a strong team of professionals dedicated to the Company and its clientele. Perseverance is my key word. Married to Carole and having 2 children: Joy-Joelle and Antoine (Joyante!).
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