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Low consumer spending drags power IC market

Posted: 10 Dec 2012 ?? ?Print Version ?Bookmark and Share

Keywords:power management? smartphone? tablet?

Demand for power management semiconductors is expected to decrease leading to a 6 per cent market decline by the end of this year.

Revenue derived from the use of power management chips will amount to $29.9 billion by the end of 2012, down from $31.8 billion last year, according to an IHS Report. The industry posted a small 1.5 per cent increase last year, from revenue of $31.4 billion in 2010.

The previous IHS forecast for 2012, issued in September, called for slight 1.7 per cent growth for the market.

"Despite the popularity of devices like smartphones and tablets, the consumer markets as a whole remain soft, with specific segmentslike notebooks and other computer platformsregistering perceptible slowdowns." said Marijana Vukicevic, senior principal analyst for power management at IHS.

Power management ICs

A deceleration of energy initiatives in Asia is also contributing to the decline. Government incentives encouraging improved-efficiency cooling systems for residential and commercial use have expired, but new replacement stimulus efforts never took place in 2012.

The market is set to return to growth in 2013 and a modest rate of expansion ensues after that for the next three years, with industry revenue reaching an estimated $38.7 billion by 2016.

- Nicolas Mokhoff
??EE Times

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