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IC content in electronic systems hits record high of 25.4%

Posted: 24 Jan 2011 ?? ?Print Version ?Bookmark and Share

Keywords:IC content in electronic systems? semiconductor average selling prices?

The semiconductor industry posted a record high dollar content in electronic systems of 25.4 percent in 2010, says IC Insights Inc.

The market research firm further predicts that the percentage of semiconductor content in electronic systems sales will continue to rise as a result of the projected increase in semiconductor average selling prices (ASPs) in 2011 and 2012.

The 2010 mark was 2.3 percentage points higher than the previous high of 23.1 percent first reached in 1995 and again in 2006, according to IC Insights.

Bill McClean, president of IC Insights, said the record is significant. "With semiconductor content increasing in electronic system sales, it indicates that the semiconductor market is growing faster than the electronic systems industry," McClean said.

McClean added that the electronic systems market is increasing 6 percent per year, which suggests that the semiconductor industry is on pace to grow 8-9 percent this year. This is consistent with IC Insights' forecast for 2011 semiconductor sales growth, which is higher than several rival market research firms.

According to IC Insights, 2009 was the first year on record that showed an increase in semiconductor content in electronic systems in a year when the semiconductor market declined.

In the 22-year period from 1989 through 2010, the percentage of semiconductor content in electronic system sales increased by 13.3 points, an average of 0.6 points per year, according to IC Insights. Historically, much of the volatility with regard to the percentage of semiconductor content in electronic systems has been due to IC price changes, the firm said.

But in 2009, the IC ASP dropped 2 percent, a record fifth year in a row of an IC ASP decline, IC Insights said. In 2010 IC ASPs increased by 1 percent, the firm said.

IC Insights said it expects IC ASPs to continue to show improvement in 2011 and 2012. The trend toward increasing IC ASPs is forecast to cause the average semiconductor content in electronic systems to rise just over two percentage points over the next five years, from 25.4 percent in 2010 to 27.8 percent in 2015, according to the firm.

IC Insights believes the "ceiling"�maximum percentage of electronic systems sales that can go to semiconductors�is at least 30 percent.

- Dylan McGrath
EE Times





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