Mostly noise- but might be of interest
Monday January 26, 7:58 am Eastern Time
Company Press Release
SOURCE: Frost & Sullivan
Frost & Sullivan: Cannibalization and Competition Crucial in the Power
Semiconductor Market
MOUNTAIN VIEW, Calif., Jan. 26 /PRNewswire/ -- The power semiconductor market is making a comeback, after a general recession hit in mid-1996 and the first quarter of 1997. Revenue rates are rising and end-user markets are stable, however, relieved manufacturers must not forget about the competition. The principal questions companies must now face are: Which types of semiconductors will show the most growth, and will another capacity shortage soon strike the industry, especially in light of the recent economic overheating in the Asia Pacific.
According to strategic research conducted by Frost & Sullivan (www.frost.com), North American Power Semiconductor Markets, the market is recovering modestly with a compound annual growth rate of 13.4 percent. Revenues hit $3.29 billion in 1997, up from $2.95 billion in 1996. Frost & Sullivan divided North American Power Semiconductor Markets into two product segments: Power discrete devices, including rectifiers, thyristors and power transistors, which control 60 percent of the market, and power integrated circuits (ICs), consisting of motion control power ICs, power conversion and management ICs, single and multiple channel power switching/control ICs and smart power ICs, which comprise the other 40 percent.
The greatest opportunities for manufacturers in the power IC semiconductor segment exist in the smart power ICs; it is the
fastest growing market with the fewest competitors. Success in this market depends on the development of large volume production contracts. In the power discretes segment, IGBTs are replacing MOSFETs and thyristors, and MOSFETs are eating up bipolar transistors and relays to compete. Thyristor/diode modules are growing at the expense of single discrete solutions.
Technological trends in both segments include: Lowering on-resistance, increased use of trench technology and operating system directed power management, efficient dissipation of heat from circuits and minimizing component crosstalk. Meanwhile, end user trends are converging to form the major challenge that manufacturers must face: Severe cannibalistic competition among device types. ''It is a situation driven not by the second-tier end user (the end users of the power semi manufacturers),
but by the demands of the third-tier of end users. They are ordering more AC drives, utilizing more UPSs, wanting more low frequency welding machines, and choosing soft starts over inverters,'' says Semiconductor Analyst Alyxia Do. All of these trends will affect the preference of one power device over another.
Product availability is a crucial competitive issue for manufacturers. Because of the potential product shortage forecast for mid to late 1998, longer lead times will result as demand grows. Lead times are predicted to grow from five weeks to up to 12 weeks.
Frost & Sullivan's study North American Power Semiconductor Markets focuses on the low power industry by combining both discrete and integrated circuit power semiconductor markets. Each product area is analyzed in a separate chapter, which includes total market revenues, growth rates, an end-user industry analysis, a geographic region analysis and the identification of market trends. Market shares for each category are given for the automotive, computer and peripheral, consumer electronics, telecommunications and industrial machinery end user markets.
The companies participating in this market include: Abbot Electronics, Inc., Advanced Power Technology, Advanced Semiconductor Inc., Aeroflex Laboratories, Inc., Allegro MicroSystems, Inc., Alpha Semiconductor, Apex Microtechnology Corp., API Electronics, Inc., Analytic Systems Ware Ltd., Asea Brown Boveri (ABB), Inc., Astec America, AVX
Corporation [NYSE:AVX - news], Benchmarq Microelectronics [Nasdaq:BMRQ - news], Inc., Burr-Brown Corporation [Nasdaq:BBRC - news], C & H Technology, Inc., Cherry Semiconductor Corporation, CKE, Inc., Collmer Semiconductor, Inc., Composite Modules, Conversion Devices, Datel, Diodes, Inc., Dionics Inc. [OTC BB:DION - news], Directed Energy
Inc., Elantec Semiconductor, Inc., Electronic Devices, Inc. (EDI), Ericsson, Inc., eupec Inc., Fuji Electric Corporation of
America, Fujitsu Microelectronics Inc., Galco Industrial Electronics, GEC Plessey Semiconductors, General Semiconductor, Harris Semiconductor, Hitachi America, Ltd., Hutson Industries, HV Components Associates, Inc., IBS Electronics Inc., Iconopower Ltd., International Power Devices, International Rectifier, Interpoint Corporation, Intronics, IXYS Corporation, Lambda Electronics, Linear Technology Corp. [Nasdaq:LLTC - news], Lucent Technologies Inc. [NYSE:LU - news], Maida Development Company, Maxim Integrated Products, Inc., Micrel, Micro Linear Corp. [Nasdaq:MLIN - news], Micro Semi PPC, Mitsubishi Electronics America, Inc., Motorola, Inc., National Semiconductor Corporation [NYSE:NSM - news], NEC Electronics, Nihon Inter Electronics Corporation, Omnirel Corporation, Panasonic Industrial Company, Philips Semiconductors, Pico Electronics, Polytron Devices, Powerex, Inc., Power Integrators, QMI Inc., Rectron Electronic
Enterprises, Inc., Richardson Electronics, Ltd., ROHM Co. Ltd., Samsung Semiconductor, Inc., SanRex Corporation, Sanyo
Semiconductor Corporation, Semicoa, Semiconductor Circuits, SemiKron, USA, Semtech Corporation [Nasdaq:SMTC -news], Sensitron Semiconductor, SGS-Thomson Microelectronics, Inc., Shindengen America, Inc., Siemens Components, Inc., Silicon Systems, Siliconix, Inc., Solid State Devices, Solitron Devices, Inc., Spang Power Control, Supertex Inc.
[Nasdaq:SUPX - news], Swampscott Electronics Co., Inc., Teccor Electronics, Inc., TelCom Semiconductor, Inc., TESEC, Texas Instruments, Inc., Thor Electronics Corp., TIC Electro, Ltd., Toshiba America Electronic Components, Inc., Tri-Mag, Inc., Unitrode, Victory Engineering Corp., Voltage Multipliers, Inc., Westcode Semiconductors, Inc., Westinghouse Canada, Inc., World Products, Inc., Zetex Inc.,
Distributors, Access Semiconductor, Accurate Components, Alternate Source Components Inc., Arrow Electronics, Avnet Inc. [NYSE:AVT - news], BBD Electronics, Bell Industries Inc. [NYSE:BI -
news], CT & M Inc., Competitive Components, Digi-Key, Electronics Distribution Services, F.G. Commodity Electronics, Future Electronics Inc., ICS Corporation, Jaco Electronics Inc. [Nasdaq:JACO - news], Marshall Industries, Mode Electronics Ltd., Nu Horizons Electronics Corporation [Nasdaq:NUHC - news], PIK, Pioneer-Standard Electronics Inc.[OTC BB:SDEL - news], Premier Farnell Corporation, ProComponents, Pro Distribution, Projections Unlimited, Raab Karcher North America, Reptron Electronics Inc. [Nasdaq:REPT - news], Resource Electronics Inc., Richardson Electronics Inc., Sager Electronics, Sterling Electronics Corporation.
This semiconductor industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research included: Identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the semiconductor market. Frost & Sullivan is an international marketing consulting company that monitors the semiconductor industry for market trends, market measurements and strategies. This ongoing research is utilized to update a series of research publications such as #5741-26 World High Power Solid State Device Markets and to support industry participants with customized consulting needs.
Report: 5582-26 Publication Date: December 1997 Price: $2950
***$4400 if purchased with #5741-26***
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