Category Archives: MEMS

IC Insights traced the sales of the top 10 semiconductor companies dating back to 1985, in its Research Bulletin dated August 27, 2013.  In 1990, six Japanese companies were counted among the top 10 leaders in semiconductor sales.  In that year—in many ways, the peak of its semiconductor manufacturing and market strength—Japanese companies accounted for 51 percent of total semiconductor capital spending (Figure 1).

bulletin20130910Fig01.1

North American companies accounted for 31 percent of semiconductor capex in 1990 and the Asia-Pacific region captured 10 percent share, slightly ahead of the eight percent held by European companies.  For perspective, Japan’s share of semi capex in 1990 was 20 points more than North America, 41 points more than Asia-Pacific, and 43 points more than Europe.

After reaching its highest-ever share of capital spending in 1990, Japan relinquished 20 points of marketshare and in five years trailed North America in semiconductor capital spending.  Economic malaise forced many of Japan’s strongest semiconductor companies to trim capex budgets and re-evaluate long-term strategic business plans.  At the same time, Japan was also feeling competitive pressure from South Korea, which had developed a strong memory manufacturing presence of its own; and from Taiwan, where the foundry business model was beginning to prosper.  In 1998, Japan trailed not only the North America region in semiconductor capital spending, but the Asia-Pacific region as well.  Fast-forward to 2010 and Japan and Asia-Pacific had essentially swapped places in terms of semiconductor capex marketshare.  In 1H13, Japan’s share of total semiconductor capital spending had dwindled to seven percent.

Japanese suppliers that are no longer in the semiconductor business include NEC, Hitachi, and Matsushita.  Other Japanese semiconductor companies that have greatly curtailed semiconductor operations include Sanyo, which was acquired by ON Semiconductor; Sony, which cut semiconductor capital spending and announced its move to an asset-lite strategy for ICs; Fujitsu, which sold its wireless group to Intel, sold its MCU and analog IC business to Spansion, and is consolidating its system LSI business with Panasonic’s; and Mitsubishi.

Meanwhile, from 2000-1H13, China joined semiconductor companies in South Korea, Taiwan, and Singapore by investing heavily in wafer fabs and advanced process technology.  These investments by Asia-Pacific companies were used primarily to produce DRAM and flash memory, microcontrollers, and to bolster wafer foundry operations.  Asia-Pacific accounted for 53 percent of capex marketshare in 1H13, down slightly from its 55 percent peak in 2010.

Mostly on account of spending by Intel, GlobalFoundries, Micron, and SanDisk, North America accounted for 37 percent of capital spending in 1H13, a few points higher than the steady 29 percent-33 percent share it has held since 1990.

There are three large European semiconductor suppliers and each now operates using a fab-lite or asset-lite strategy, which is why semiconductor capital spending from European companies accounted for only three percent of total capex in 1H13.  IC Insights forecasts capex spending by Europe-based ST, Infineon, and NXP and all other European semiconductor suppliers combined will amount to less than $1.5 billion in 2013.  Led by Samsung, Intel, and TSMC, there are nine semiconductor suppliers that are forecast to spend more money on their own than Europe will spend collectively in 2013.  In IC Insights’ opinion, IC manufacturers that are currently spending less than $1.0 billion a year on capital outlays will find it just about impossible to continue being able to manufacture using leading-edge digital processing technology, which is why European suppliers now outsource their most critical processing to foundries.

Jazz Semiconductor Inc., a fully owned U.S. subsidiary of Tower Semiconductor Ltd., has announced the accreditation for trusted status of Jazz Semiconductor Trusted Foundry (JSTF). JSTF has been accredited as a Category 1A Trusted Supplier by the United States Department of Defense as a provider of trusted semiconductors in critical defense applications. JSTF joins a small list of companies accredited by the DoD Trusted Foundry Program, established to ensure the integrity of the people and processes used to deliver national security critical microelectronic components, and administered by the DoD’s Defense Microelectronics Activity (DMEA).

TowerJazz said in its official release that the creation and accreditation of JSTF will help broaden existing business relationships previously disclosed with major defense contractors such as Raytheon, Northrop Grumman, BAE Systems, DRS, Alcatel-Lucent, and L-3 Communications.

“In the United States, there was no ‘pure play’ trusted foundry capability available,” TowerJazz CEO Russell Ellwanger said. “Our aerospace and defense customers asked that we would go this route to enable them greater freedom to serve their great country’s needs; a country that stands as a banner for democratic process throughout the world. Primarily for this purpose, we went beyond our initial commitment to the US State Department to continue support of our ITAR customers and engaged in rounds of discussion with the US Department of Defense toward participation in the Trusted program in our Newport Beach facility. And, as in all activities where one serves purposes of great principle, it is also good business."

“Jazz Semiconductor Trusted Foundry is proud to join the DoD Trusted Foundry Program to enable trusted access to a broad range of on-shore technologies and manufacturing capabilities,” said Scott Jordan, president, JSTF. “The accreditation process adds trust to the existing quality and security systems, improving our level of service to our military and defense customers.”

In its Research Bulletin dated August 2, 2013, IC Insights published its list of the top semiconductor sales leaders for the first half of 2013. The list showed the usual big-time players that we’ve come to expect like Intel, Samsung, and TSMC, leading the way in semiconductor sales through the first six months of the year. What stood out nearly as much, however, was that only one Japanese company—Toshiba—was present among the top 10 suppliers through the first half of 2013.  Anyone who has been involved in the semiconductor industry for a reasonable amount of time realizes this is a major shift and a big departure for a country that once was feared and revered when it came to its semiconductor manufacturing presence on the global market.

Figure 1 traces the top 10 semiconductor companies dating back to 1985, when Japanese semiconductor manufacturers wielded their influence on the global stage.  That year, there were five Japanese companies ranked among the top 10 semiconductor suppliers.  Then, in 1990, six Japanese companies were counted among the top 10 semiconductor suppliers—a figure that has not been matched by any country or region since.  The number of Japanese companies ranked in the top 10 in semiconductor sales slipped to four in 1995, then fell to three companies in 2000 and 2006, two companies in 2012, and then to only one company in the first half of 2013.

Read more: First half of 2013 shows big changes to the top 20 semiconductor supplier ranking

It is worth noting that Renesas (#11), Sony (#16), and Fujitsu (#22) were ranked among the top 25 semiconductor suppliers in 1H13, but Sony has been struggling to re-invent itself and Fujitsu has spent the first half of 2013 divesting most of its semiconductor operations.

Japan’s total presence and influence in the semiconductor marketplace has waned.  Once-prominent Japanese names now gone from the top suppliers list include NEC, Hitachi, Mitsubishi, and Matsushita. Competitive pressures from South Korean IC suppliers—especially in the DRAM market—have certainly played a significant role in changing the look of the top 10.  Samsung and SK Hynix emulated and perfected the Japanese manufacturing model over the years and cut deeply into sales and profits of Japanese semiconductor manufacturers, resulting in spin-offs, mergers, and acquisitions becoming more prevalent among Japanese suppliers.

  • 1999 — Hitachi and NEC merged their DRAM businesses to create Elpida Memory.
  • 2000 — Mitsubishi divested its DRAM business into Elpida Memory.
  • 2003 — Hitachi merged its remaining Semiconductor & IC Division with Mitsubishi’s System LSI Division to create Renesas Technology.
  • 2003 — Matsushita began emphasizing Panasonic as its main global brand name in 2003.  Previously, hundreds of consolidated companies sold Matsushita products under the Panasonic, National, Quasar, Technics, and JVC brand names.
  • 2007 — To reduce losses, Sony cut semiconductor capital spending and announced its move to an asset-lite strategy—a major change in direction for its semiconductor business.
  • 2010 — NEC merged its remaining semiconductor operations with Renesas Technology to form Renesas Electronics.
  • 2011 — Sanyo Semiconductor was acquired by ON Semiconductor.
  • 2013 — Fujitsu and Panasonic agreed to consolidate the design and development functions of their system LSI businesses.
  • 2013 — Fujitsu sold its MCU and analog IC business to Spansion.
  • 2013 — Fujitsu sold its wireless semiconductor business to Intel.
  • 2013 — Elpida Memory was formally acquired by Micron.
  • 2013 — After failing to find a buyer, Renesas announced plans to close its 300mm and 125mm wafer-processing site in Tsuruoka, Japan, by the end of 2013.  The facility makes system-LSI chips for Nintendo video game consoles and other consumer electronics.
  • 2013 — Unless it finds a buyer, Fujitsu plans to close its 300mm wafer fab in Mie.

Besides consolidation, another reason for Japan’s reduced presence among leading global semiconductor suppliers is that the vertically integrated business model that served Japanese companies so well for so many years is not nearly as effective in Japan today.  Due to the closed nature of the vertically integrated business model, when Japanese electronic systems manufacturers lost marketshare to global competitors, they took Japanese semiconductor divisions down with them.  As a result, Japanese semiconductor suppliers missed out on some major design win opportunities for their chips in many of the best-selling consumer, computer, and communications systems that are now driving semiconductor sales.

It is probably too strong to suggest that in the land of the rising sun, the sun has set on semiconductor manufacturing.  However, the global semiconductor landscape has changed dramatically from 25 years ago. For Japanese semiconductor companies that once prided themselves on their manufacturing might and discipline to practically disappear from the list of top semiconductor suppliers is evidence that competitive pressures are fierce and that as a country, perhaps Japan has not been as quick to adopt new methods to carry on and meet changing market needs.

Anapass, Inc, a display SoC solution provider, today announced that it has successfully completed development of a leading-edge panel controller system on chip “SoC” for UHD TV applications and has recently started mass production. As a result of the successful commercialization of a competitive panel controller SoC for UHD TV, Anapass will be well positioned as a leading panel controller provider for the rapidly growing next generation world-wide TV market, UHD TV.

According to a market research report produced by SNE Research in May 2013, the number of worldwide TV shipments forecasted for this year is 235.1M, 2.6M units of which are expected to be UHD TVs. This year is the first to show significant emergence of UHD TVs as the next generation TV. According to the report, between this year and 2016, the UHD TV market is expected to rapidly grow with 191 percent of CAGR, therefore nearly doubling every year.

The rapid growth of the UHD TV market is reflecting the recent market situation in which the world’s leading flat panel TV makers are aggressively expanding their UHD TV line up from premium high-end TVs down to high volume, smaller panel size TVs ranging from 50 to 60 inch. As such, the UHD TV market is expected to have very aggressive growth. In addition, the swift evolution of the UHD (3840 x 2160) video content eco-system, which provides four times higher resolution than FHD (1920×1080) is strongly supporting the emergence of the UHD TV market era.

Anapass said it intends to leverage its technical know-how and experience in developing and launching panel controller products for flat panel TVs for leading the commercialization of next generation panel controller products optimized for the rapidly growing UHD TV market. Anapass said it is expecting that this will significantly contribute to continuous growth of its core panel controller business.

One of the most promising types of solar cells has a few drawbacks. A scientist at Michigan Technological University may have overcome one of them.

Dye-sensitized solar cells are thin, flexible, easy to make and very good at turning sunshine into electricity. However, a key ingredient is one of the most expensive metals on the planet: platinum. While only small amounts are needed, at $1,500 an ounce, the cost of the silvery metal is still significant.

Yun Hang Hu, the Charles and Carroll McArthur Professor of Materials Science and Engineering, has developed a new, inexpensive material that could replace the platinum in solar cells without degrading their efficiency: 3D graphene.

Read more: Graphene nanoscrolls are formed by decoration of magnetic nanoparticles

Regular graphene is a famously two-dimensional form of carbon just a molecule or so thick. Hu and his team invented a novel approach to synthesize a unique 3D version with a honeycomb-like structure. To do so, they combined lithium oxide with carbon monoxide in a chemical reaction that forms lithium carbonate (Li2CO3) and the honeycomb graphene. The Li2CO3 helps shape the graphene sheets and isolates them from each other, preventing the formation of garden-variety graphite.  Furthermore, the Li2CO3 particles can be easily removed from 3D honeycomb-structured graphene by an acid.

The researchers determined that the 3D honeycomb graphene had excellent conductivity and high catalytic activity, raising the possibility that it could be used for energy storage and conversion. So they replaced the platinum counter electrode in a dye-sensitized solar cell with one made of the 3D honeycomb graphene. Then they put the solar cell in the sunshine and measured its output.

The cell with the 3D graphene counter electrode converted 7.8 percent of the sun’s energy into electricity, nearly as much as the conventional solar cell using costly platinum (8 percent).

Synthesizing the 3D honeycomb graphene is neither expensive nor difficult, said Hu, and making it into a counter electrode posed no special challenges.

The research has been funded by the American Chemical Society Petroleum Research Fund (PRF-51799-ND10) and the National Science Foundation (NSF-CBET-0931587). The article describing the work, “3D Honeycomb-Like Structured Graphene and Its High Efficiency as a Counter-Electrode Catalyst for Dye-Sensitized Solar Cells,” coauthored by Hu, Michigan Tech graduate student Hui Wang, Franklin Tao of the University of Notre Dame, Dario J. Stacchiola of Brookhaven National Laboratory and Kai Sun of the University of Michigan, was published online July 29 in the journal Angewandte Chemie, International Edition.

Researchers at Umeå University, together with researchers at Uppsala University and Stockholm University, show in a new study how nitrogen-doped graphene can be rolled into perfect Archimedean nano scrolls by adhering magnetic iron oxide nanoparticles on the surface of the graphene sheets. The new material may have very good properties for application as electrodes in for example Li-ion batteries.

Read more: Graphene sees explosive demand in a variety of industries

Graphene is one of the most interesting materials for future applications in everything from high performance electronics, optical components to flexible and strong materials. Ordinary graphene consists of carbon sheets that are single or few atomic layers thick.

graphene nanoscrolls

In the study the researchers have modified the graphene by replacing some of the carbon atoms by nitrogen atoms. By this method they obtain anchoring sites for the iron oxide nanoparticles that are decorated onto the graphene sheets in a solution process. In the decoration process one can control the type of iron oxide nanoparticles that are formed on the graphene surface, so that they either form so called hematite (the reddish form of iron oxide that often is found in nature) or maghemite, a less stable and more magnetic form of iron oxide.

“Interestingly we observed that when the graphene is decorated by maghemite, the graphene sheets spontaneously start to roll into perfect Archimedean nano scrolls, while when decorated by the less magnetic hematite nanoparticles the graphene remain as open sheets, says Thomas Wågberg, Senior lecturer at the Department of Physics at Umeå University.

The nanoscrolls can be visualized as traditional “Swiss rolls” where the sponge-cake represents the graphene, and the creamy filling is the iron oxide nanoparticles. The graphene nanoscrolls are however around one million times thinner.

The results that now have been published in Nature Communications are conceptually interesting for several reasons. It shows that the magnetic interaction between the iron oxide nanoparticles is one of the main effects behind the scroll formation. It also shows that the nitrogen defects in the graphene lattice are necessary for both stabilizing a sufficiently high number of maghemite nanoparticles, and also responsible for “buckling” the graphene sheets and thereby lowering the formation energy of the nanoscrolls.

The process is extraordinary efficient. Almost 100 percent of the graphene sheets are scrolled. After the decoration with maghemite particles the research team could not find any open graphene sheets.

Moreover, they showed that by removing the iron oxide nanoparticles by acid treatment the nanoscrolls again open up and go back to single graphene sheets

“Besides adding valuable fundamental understanding in the physics and chemistry of graphene, nitrogen-doping and nanoparticles we have reasons to believe that the iron oxide decorated nitrogen doped graphene nanoscrolls have very good properties for application as electrodes in for example Li-ion batteries, one of the most important batteries in daily life electronics, “ says Thomas Wågberg.

The study has been conducted within the “The artificial leaf” project which is funded by Knut and Alice Wallenberg foundation to physicist, chemists, and plant science researchers at Umeå University.

Bruker Corporation today announced the appointment of Thomas Bachmann as the new president of its Bruker BioSpin Group. Bachmann most recently served as CEO of Tecan Group in Switzerland, a global provider of complex laboratory instrumentation and integrated liquid-handling workflow solutions for life science research and diagnostics.

The Bruker BioSpin Group is the global market and technology leader in analytical and preclinical magnetic resonance instrumentation, with major operations in Germany, Switzerland, France and the United States, as well as numerous applications and customer service centers around the world. The Bruker BioSpin Group operates in two divisions:

  • Magnetic Resonance Spectroscopy (MRS) division, consisting of the three business units nuclear magnetic resonance (NMR), electron paramagnetic resonance (EPR) and compact magnetic resonance (CMR)
  • Preclinical Imaging (PCI) division, consisting of the preclinical imaging product lines magnetic resonance imaging (MRI), magnetic particle imaging (MPI), X-ray micro-CT, as well as optical and PET/SPECT/CT molecular imaging.

“I am very pleased to welcome Thomas Bachmann to Bruker,” said Frank Laukien, Bruker’s president and CEO. “His life-science background and his broad management experience will allow him to lead our excellent BioSpin management team in order to further accelerate our innovation, profitable growth and operational excellence initiatives. Thomas will be a valuable addition for all of Bruker due to his diversified industrial experience, his global customer and operations exposure, and his successful track record.”

“I am delighted to join Bruker, and together with an experienced management team I look forward to further developing the Bruker BioSpin Group,” Bachmann said.

Thomas Bachmann brings over twenty-five years of global experience in sales and marketing, in leading and transforming complex businesses, as well as in strategy and business development to his new role as Bruker BioSpin Group President, including experience as a CEO of two publicly traded companies. From 2005 until 2012, Bachmann served as CEO of Tecan Group, where he increased operational effectiveness, expanded into new businesses, developed emerging markets, created a solid organization, established regulatory competence and compliance, grew profitability and built a strong balance sheet. From 2002 until 2004, he was CEO of the Arbonia-Forster Group’s Steel Systems Business, a global provider of building supplies. From 1985 until 2002, Bachmann served in various roles as global Sales and Marketing Director, Business Unit Director and Senior Vice President of Corporate Development at Rieter Holding, a global provider of textile machinery and plants, as well as an automotive supplier of acoustic- and thermal insulation systems. Bachmann holds a B.Sc. in Mechanical Engineering and an Executive MBA from IMD Business School in Switzerland.

MIT chemical engineers have discovered that arrays of billions of nanoscale sensors have unique properties that could help pharmaceutical companies produce drugs — especially those based on antibodies — more safely and efficiently.

Using these sensors, the researchers were able to characterize variations in the binding strength of antibody drugs, which hold promise for treating cancer and other diseases. They also used the sensors to monitor the structure of antibody molecules, including whether they contain a chain of sugars that interferes with proper function.

“This could help pharmaceutical companies figure out why certain drug formulations work better than others, and may help improve their effectiveness,” says Michael Strano, an MIT professor of chemical engineering and senior author of a recent paper describing the sensors in the journal ACS Nano.

The team also demonstrated how nanosensor arrays could be used to determine which cells in a population of genetically engineered, drug-producing cells are the most productive or desirable, Strano says.

Lead author of the paper is Nigel Reuel, a graduate student in Strano’s lab. The labs of MIT faculty members Krystyn Van Vliet, Christopher Love and Dane Wittrup also contributed, along with scientists from Novartis.

Testing drug strength

Strano and other scientists have previously shown that tiny, nanometer-sized sensors, such as carbon nanotubes, offer a powerful way to detect minute quantities of a substance. Carbon nanotubes are 50,000 times thinner than a human hair, and they can bind to proteins that recognize a specific target molecule. When the target is present, it alters the fluorescent signal produced by the nanotube in a way that scientists can detect.

Read more: UC Riverside scientists discover new uses for carbon nanotubes 

Some researchers are trying to exploit large arrays of nanosensors, such as carbon nanotubes or semiconducting nanowires, each customized for a different target molecule, to detect many different targets at once. In the new study, Strano and his colleagues wanted to explore unique properties that emerge from large arrays of sensors that all detect the same thing.

The first feature they discovered, through mathematical modeling and experimentation, is that uniform arrays can measure the distribution in binding strength of complex proteins such as antibodies. Antibodies are naturally occurring molecules that play a key role in the body’s ability to recognize and defend against foreign invaders. In recent years, scientists have been developing antibodies to treat disease, particularly cancer. When those antibodies bind to proteins found on cancer cells, they stimulate the body’s own immune system to attack the tumor.

For antibody drugs to be effective, they must strongly bind their target. However, the manufacturing process, which relies on nonhuman, engineered cells, does not always generate consistent, uniformly binding batches of antibodies.

Currently, drug companies use time-consuming and expensive analytical processes to test each batch and make sure it meets the regulatory standards for effectiveness. However, the new MIT sensor could make this process much faster, allowing researchers to not only better monitor and control production, but also to fine-tune the manufacturing process to generate a more consistent product.

“You could use the technology to reject batches, but ideally you’d want to use it in your upstream process development to better define culture conditions, so then you wouldn’t produce spurious lots,” Reuel says.

Measuring weak interactions

Another useful trait of such sensors is their ability to measure very weak binding interactions, which could also help with antibody drug manufacturing.

Antibodies are usually coated with long sugar chains through a process called glycosylation. These sugar chains are necessary for the drugs to be effective, but they are extremely hard to detect because they interact so weakly with other molecules. Drug-manufacturing organisms that synthesize antibodies are also programmed to add sugar chains, but the process is difficult to control and is strongly influenced by the cells’ environmental conditions, including temperature and acidity.

Without the appropriate glycosylation, antibodies delivered to a patient may elicit an unwanted immune response or be destroyed by the body’s cells, making them useless.

“This has been a problem for pharmaceutical companies and researchers alike, trying to measure glycosylated proteins by recognizing the carbohydrate chain,” Strano says. “What a nanosensor array can do is greatly expand the number of opportunities to detect rare binding events. You can measure what you would otherwise not be able to quantify with a single, larger sensor with the same sensitivity.”

This tool could help researchers determine the optimal conditions for the correct degree of glycosylation to occur, making it easier to consistently produce effective drugs.

Mapping production

The third property the researchers discovered is the ability to map the production of a molecule of interest. “One of the things you would like to do is find strains of particular organisms that produce the therapeutic that you want,” Strano says. “There are lots of ways of doing this, but none of them are easy.”

The MIT team found that by growing the cells on a surface coated with an array of nanometer-sized sensors, they could detect the location of the most productive cells. In this study, they looked for an antibody produced by engineered human embryonic kidney cells, but the system could also be tailored to other proteins and organisms.

Once the most productive cells are identified, scientists look for genes that distinguish those cells from the less productive ones and engineer a new strain that is highly productive, Strano says.

The researchers have built a briefcase-sized prototype of their sensor that they plan to test with Novartis, which funded the research along with the National Science Foundation.

“Carbon nanotubes coupled to protein-binding entities are interesting for several areas of bio-manufacturing as they offer great potential for online monitoring of product levels and quality. Our collaboration has shown that carbon nanotube-based fluorescent sensors are applicable for such purposes, and I am eager to follow the maturation of this technology,” says Ramon Wahl, an author of the paper and a principal scientist at Novartis.

Pixy is a small camera about half the size of a business card that can detect objects that you "train" it to detect. Training is accomplished by holding the object in front of Pixy’s lens and pressing a button. Pixy then finds objects with similar color signatures using a dedicated dual-core processor that can process images at 50 frames per second. Pixy can report its findings, which include the sizes and locations of all detected objects, through one of several interfaces: UART serial, SPI, I2C, digital or analog I/O. Pixy can detect hundreds of objects from seven different color signatures.  As part of a Kickstarter campaign, Pixy is available by contributing $59 or more.

 pixy sensor

Pixy is a partnership between Carnegie Mellon University and a small Austin-based company, Charmed Labs. Pixy is the latest version of the CMUcam, a popular line of vision sensors.  The goal of Pixy is to provide a smart camera sensor that is easy to use and priced low enough, so that it can be used by a wider audience, including educators and hobbyists that currently use microcontrollers such as the popular Arduino. Pixy can connect directly to the Arduino with a simple cable. Since Pixy has its own processor, it does not bog down the Arduino’s CPU with processing images.  And since Pixy has several communication options, it can talk to practically any microcontroller, or even simple devices such as relays, servos or lights.

"We tried to make Pixy as easy to use as possible. We think this will make it popular with the robotics and maker communities," Anthony Rowe, CMU faculty member said.

"We’ve opened up the design by using the Open Source Hardware licensing model. You get source code, schematics, board layouts, everything," said Rich LeGrand, Charmed Labs President. Use of the Open Source Hardware licensing has been growing in the field of DIY robotics. "We expect almost everyone to use Pixy as-is, but we also hope that by opening up the design, others will be able to easily build on Pixy for their application," he added.

The market for semiconductors used in industrial electronics applications relished a better-than-expected first quarter as macroeconomic headwinds turned out to be less severe than initially feared, according to the latest Industrial Electronics report from information and analytics provider IHS.

Worldwide industrial electronics chip revenue in the first quarter reached $7.71 billion, up 1 percent from $7.63 billion in the final quarter of 2012. Although the uptick seemed modest, the increase marked a turnaround from the three percent decline in the fourth quarter. It also represents a major improvement compared to the 3 percent contraction of the market a year ago in the first quarter of 2011, as shown in the figure below.

 

“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 of Massachusetts, and Dallas-based 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 analog 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.

Europe’s woes inhibit industry, but China counters with growth

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

Read more: Regional developments to affect the growth of semiconductor industry

“The financial troubles on the continent, particularly in Greece, Italy and Spain, had the effect of stifling growth as a whole, especially in the commercial market for building and home control,” Galoso said. “As a result, the individual sectors for lighting, security, climate control and medical imaging were deleteriously impacted in the first quarter, compared to positive performance for those areas in the fourth quarter of 2012.

In contrast to Europe’s woes was China, which displayed growth momentum and much-improved demand across a number of industrial end markets. Manufacturers like Siemens of Germany, Philips of the Netherlands, Swiss-based ABB and Schneider Electric of France said their first-quarter sales in China improved from the earlier quarter.

In the rare earth industrial sector, however, China’s hold on the market loosened as rare earth prices started going south this year. China had a more than 90 percent monopoly on rare earth elements in the past, but new sources in Australia, the United States, Brazil, Canada and South Africa have opened up the market, decreasing dependence on China.

Products that incorporate rare earth materials include wind turbines, rechargeable batteries for electric vehicles and defense applications, including jet-fighter engines, missile guidance systems, and space satellites and communications systems.

Aerospace flies high; oil and gas equipment is also a winner

The military and civil aerospace market had the most robust performance among all industrial semiconductor segments in the first quarter. Avionics was especially vigorous, driven by commercial aircraft sales from pan-European entity EADS Airbus and U.S. maker Boeing, up 9 percent and 14 percent, respectively, on the quarter.

The oil and gas exploration market also saw solid revenue growth, with strong subsea systems and drilling equipment driving sales for ABB, Honeywell and GE.

In contrast to those high-performing segments, lackluster sales were reported in the markets for building and home control, for energy generation and distribution, and for test and measurement. One other market, manufacturing and process automation, reported stable growth, even though its sector for motor drives remained in negative territory.