Power IC market to post 8.8 percent CAGR until 2006

According to a Venture Development Corp. study titled "The Global Market For Power Supply and Power Management Integrated Circuits," worldwide shipments of power supply and power management ICs were over 5 billion in 2003 and are expected to increase at an annual growth rate of 8.8 percent, reaching close to 7 billion by 2006.

The study predicts that the industry is well positioned to grow from 2003 to 2006 due to increased demand for wireless and broadband technologies, a strong consumer sector, and the 2003 recovery in IT hardware spending.

However, VDC says the industry is facing a paradigm shift and is not expected to recover in its same form as in previous years. The shift will result from the acceleration of outsourcing and a migration to subcontract manufacturing in Asia, which is considered as the world's fastest-growing chip market at present.