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China, US propel growth in industrial semiconductor market

Posted: 20 Nov 2014 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor? LED? stimulus programme?

China and the United States are both driving the growth in the industrial semiconductor market worldwide, according to IHS Technology.

Global market revenue for industrial semiconductors is expected to rise by 12.9 per cent in 2014, reaching $38.5 billion, up from $34 billion in 2013. This represents an even larger increase in market growth compared to an 11.4 per cent expansion in 2013.

The United States and China, the world's two largest markets for industrial semiconductors, are propelling global growth this year, with revenue increases of 13 per cent and 17 per cent, respectively, as presented in the figure below. The two regions were responsible for strong market increases in the second quarter, compensating for a decline in Europe.

Growth in industrial semiconductor market

The surge in in the second quarter was due in particular to three sectors: factory automation, building and home control, and commercial aircraft. Expansion in the economies of the United States and China overcame a contraction in the European market region during the April through June period. Following a seasonally slow first quarter, the strong second quarter expansion of nearly 7 per cent kept the global market for industrial semiconductors on a strong ascendant path for the year.

"Rising demand for industrial semiconductors in the United States is being driven by a wide range of positive economic factors that are boosting the manufacturing sector," said Robbie Galoso, principal analyst for IHS.

"At the same time, the Chinese government's generous stimulus programmes in several product markets are promoting broad-based strength for various industrial electronics areas. The robust performance in both countries kept spending on industrial semiconductors on track in the second quarter and set the stage for accelerated growth for the entire year of 2014."

Industrial juggernauts

The growth in the United States is driven by a plethora of factors, including a more stable housing market, improved consumer finances, and credit and increased capital spending. This will cause annual growth in the U.S. industrial semiconductor market to rise by about 2 per cent in 2014 compared to 2013.

With 30.5 per cent of total revenue in 2013, the United States is the No. 1 purchaser of industrial semiconductors in the world and has market share dominance across several industrial markets.


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