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Global industrial electronics chip revenue hit $7.7B in Q1

Posted: 19 Aug 2013 ?? ?Print Version ?Bookmark and Share

Keywords:industrial electronics? semiconductors? analogue?

According to IHS, the market for semiconductors used in industrial electronics applications logged a better-than-expected Q1 despite the threat of a dowturn. Global industrial electronics chip revenue in Q1 reached $7.71 billion, up one per cent from $7.63 billion in 4Q12. Although the uptick seemed modest, the increase marked a turnaround from the three per cent decline in Q4. It also represents a major improvement compared to the three per cent contraction of the market a year ago in 1Q11, added the market analytics firm.

"The industrial semiconductor market's performance was encouraging, especially in light of continuing global economic uncertainty and the seasonal nature of the market, which typically sees slower movement in the first quarter of every year," said Robbie Galoso, principal analyst for electronics at IHS. "Some large segments of the industry, particularly avionics and oil and gas process-automation equipment, saw muscular double-digit gains, helping to drive up overall revenue."

In another positive development, several large industrial semiconductor suppliers also reported very lean inventories because of strong orders from customers. Infineon Technologies of Germany, Analog Devices, and Texas Instruments all posted a sequential decline in industrial chip stockpiles as their days of inventory (DOI) measure fell well below average. Infineon achieved higher sales from increased volume in isolated-gate bipolar transistor (IGBT) chips; Analog Devices was strong in factory automation and medical instrumentation; and Texas Instruments saw growth in its analogue products.

Other companies reporting sound increases during the period were Xilinx of California for its test and measurement, military aerospace and medical product lines; and Microsemi, also from California, which likewise enjoyed expansion in medical electronics along with broad-based growth for the period.

However, the industry was not without its challenges, with the Eurozone crisis causing the most havoc.


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