Linear Boosts ADI on Industrial IC Market

Article By : Dylan McGrath, EE Times

Strong growth on Industrial IC market too, no Chinese firms in top 10

SAN FRANCISCO — Analog Devices moved into the No. 2 position in the industrial semiconductor market in 2017, based on its $14.8 billion acquisition of rival Linear Devices, according to IHS Markit. Texas Instruments remained the leading supplier of industrial chips.

Overall, the industrial semiconductor market grew by 11.8 percent last year to reach $49.1 billion, IHS said. Demand for industrial equipment was broad-based, with continued growth in commercial and military aircraft, LED lighting, digital signage, digital video surveillance, and other markets, the firm said.

“The resilient economy in the United States, and strong demand in China, carried the lion’s share of industrial equipment demand in 2017,” said Robbie Galoso, associate director and principal analyst for industrial semiconductors at IHS Markit, in a statement. “A European resurgence also provided a strong tailwind for semiconductor growth.”

IHS forecasts that the industrial chip market will continue to increase at a compound annual growth rate of 7.1 percent through 2022.

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Each of the top 10 industrial semiconductor suppliers posted growth last year, IHS said. The top 10 suppliers after TI and ADI were, in order: Intel, Infineon, STMicroelectronics, Micron Technology, Toshiba, Microchip, ON Semiconductor and NXP Semiconductors, according to IHS.

No Chinese firms were among the top 10 suppliers of industrial semiconductors last year. However, IHS noted that China’s massive investment in LED manufacturing are beginning to pay off, with Chinese firm MLS increasing sales by 50 percent last year to reach $1 billion, moving the company up five spots to reach 13in in the industrial chip market. MLS beat out other leading general lighting LEDs suppliers Nichia, Osram and Cree, IHS said.

— Dylan McGrath is the editor-in-chief of EE Times.

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