Top ten suppliers held 59% of analogue market last year
The top ten IC suppliers in the $54.5bn analogue market last year accounted for 59% of the category’s worldwide sales in 2017, according to a recent monthly update to IC Insights’ 2018 McClean Report. Collectively, the top ten companies generated $32.3bn in analogue IC sales last year compared to $28.4bn in 2016, which was a 14% increase and a gain of two percentage points in market share during 2017, said the 50-page April Update to The McClean Report.
Eight of the top ten suppliers exceeded the 10% growth rate of the total analogue market in 2017, according to the update. With analogue sales of $9.9bn and 18% marketshare, Texas Instruments was again the leading supplier of analogue integrated circuits in 2017.
In 2016, TI’s marketshare was 17% in analogue ICs. The company’s analogue sales increased by about $1.4bn last year - rising 16% - compared to 2016 and were more than twice that of second-ranked Analog Devices (ADI). TI’s 2017 analogue revenue represented 76% of its $13.0bn in total IC sales and 71% of its $13.9bn total semiconductor revenue, based on IC Insights’ estimates.
TI was among the first companies to manufacture analogue semiconductors on 300mm wafers. TI has claimed that manufacturing analogue ICs on 300mm wafers gives it a 40% cost advantage per unpackaged chip compared to using 200mm wafers. In 2017, about half of TI’s analogue revenue was generated on devices built using 300mm wafers.
Second-place ADI registered a 14% increase in analogue IC sales in 2017 to $4.3bn, according to IC Insights’ supplier ranking. The 2016 and 2017 revenue numbers shown for ADI include sales from Linear Technology, which was acquired by the company in 1Q17 for $15.8bn. NXP was the only supplier in the top ten ranking that experienced a decline (-1%) in its analog sales last year.
Some of NXP’s analogue revenue decline can be attributed to the sale of its Standard Products business to a consortium of Chinese investors consisting of JAC Capital and Wise Road Capital. The $2.75bn transaction was completed in February 2017. The Standard Products business was renamed Nexperia and headquartered in the Netherlands.
Among the top ten, ON Semiconductor showed the largest analogue sales gain in 2017, with revenues increasing 35% to $1.8bn, which represented a 3% share of the market. This follows a 16% rise in its analogue sales in 2016.
Some of the strong increases in sales during the last two years were a result of ON Semi’s acquisition of Fairchild Semiconductor in September 2016 for $2.4bn. ON Semi's analogue business was also boosted in 2017 by record sales of its power management products to the automotive market, specifically for active safety, powertrain, body electronics, and lighting applications.