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SEMI, the global industry association representing more than 2,000 companies in the electronics manufacturing supply chain, today reported that worldwide sales of new semiconductor manufacturing equipment are projected to increase 8.7 percent to $39.7 billion in 2016, according to the SEMI Year-end Forecast, released today at the annual SEMICON Japan exposition.  In 2017, another 9.3 percent growth is expected, resulting in a global semiconductor equipment market totaling $43.4 billion.

The SEMI Year-end Forecast predicts that wafer processing equipment, the largest product segment by dollar value, is anticipated to increase 8.2 percent in 2016 to total $31.2 billion. The assembly and packaging equipment segment is projected to grow by 14.6 percent to $2.9 billion in 2016 while semiconductor test equipment is forecast to increase by 16.0 percent, to a total of $3.9 billion this year.

For 2016, Taiwan and South Korea are projected to remain the largest spending regions, with China joining the top three for the first time. Rest of World (essentially Southeast Asia), will lead in growth with 87.7 percent, followed by China at 36.6 percent and Taiwan at 16.8 percent.

SEMI forecasts that in 2017, equipment sales in Europe will climb the most, 51.7 percent, to a total of $2.8 billion, following a 10.0 percent contraction in 2016. In 2017, Taiwan, Korea and China are forecast to remain the top three markets, with Taiwan maintaining the top spot even with a 9.2 percent decline to total $10.2 billion. Equipment sales to Korea are forecast at $9.7 billion, while equipment sales to China are expected to reach $7.0 billion.

The following results are given in terms of market size in billions of U.S. dollars:

2016-year-end

As more smartphone manufacturers build designs using flexible display technology, shipments of flexible displays are expected to reach 139 million units in 2017, an increase of 135 percent compared to 2016. According to IHS Markit (NASDAQ: INFO), flexible displays are expected to comprise 3.8 percent of total display unit shipments in 2017.

Vivo and Xiaomi launched their first smartphones with flexible active-matrix organic light-emitting diode (AMOLED) displays in 2016, while many other manufacturers have plans to develop their own foldable (or bendable, dual-edge curved) smartphone designs. In particular, Apple is expected to launch its new iPhone using flexible AMOLED display in 2017, which would dramatically drive up expected demand for flexible AMOLED panels. Flexible AMOLEDs are expected to comprise 20 percent of total OLED display unit shipments in 2017.

IHS_Markit_Flexible_display_shipments_forecast

“During 2016, many smartphone manufacturers have pressured display panel makers to supply them with more flexible AMOLEDs for their new smartphone designs, however, due to limited production capacity only a few players had their orders met in quantity,” said Jerry Kang, principal analyst of display research for IHS Markit.

However, tight supply conditions are expected to change in 2017 once Samsung Display and LG Display start operating their new fabs to increase supply capacity for flexible displays, resulting in earlier availability of new smartphone entrants in the market.

“With new form factors entering the marketplace next year to entice consumers, smartphone manufacturers will find themselves locked in a fierce battle with one another as they jostle to win marketshare for their new smartphone models featuring dual-edge curved and foldable AMOLED displays,” Kang said.

According to the latest IHS Markit Flexible Display Market Tracker report, smartphones took up 76 percent of the total flexible display supply in 2016 with the remainder taken up by smartwatches. However, flexible display supply for other applications, including tablet PCs, near-eye virtual reality devices, automotive monitors and OLED TVs, is not expected to be significant until 2023.

“Consumer device manufacturers will eventually move from conventionally designed flat and rectangular form factors to the latest curved, foldable or rollable screens, but only once their product roadmap for newer, innovative devices becomes more mature,” Kang said.

The semi-annual IHS Markit Flexible Display Market Tracker covers the latest flexible display market forecast, and panel manufacturer’s strategies, technologies and patent trends.

The Global Semiconductor Alliance (GSA) is proud to announce the award recipients honored at the 2016 GSA Awards Dinner Celebration that took place in Santa Clara, California. Over the past 22 years the awards program has recognized the achievements of semiconductor companies in several categories ranging from outstanding leadership to financial accomplishments, as well as overall respect within the industry.

The GSA’s most prestigious award, the Dr. Morris Chang Exemplary Leadership Award, was presented to Mr. Lip-Bu Tan, President and CEO of Cadence Design Systems, Inc. and Founder and Chairman of Walden International.

GSA members identified the Most Respected Public Semiconductor Company Award winners by casting ballots for the industry’s most respected companies judging by their products, vision and future opportunities. Winners included the “Most Respected Emerging Public Semiconductor Company Achieving $100 Million to $500 Million in Annual Sales Award” presented to Nordic Semiconductor; “Most Respected Public Semiconductor Company Achieving $500 Million to $1 Billion in Annual Sales Award” awarded to Silicon Labs; “Most Respected Public Semiconductor Company Achieving $1 Billion to $5 Billion in Annual Sales Award” awarded to Analog Devices, Inc.; and “Most Respected Public Semiconductor Company Achieving Greater than $5 Billion in Annual Sales Award” received by NVIDIA Corporation.

The “Most Respected Private Company Award” was voted on by GSA membership and presented to Quantenna Communications, Inc. Other winners include “Best Financially Managed Company Achieving up to $1 Billion in Annual Sales Award” presented to Silicon Motion Technology Corporation (Silicon Motion, Inc.) and “Best Financially Managed Semiconductor Company Achieving Greater than $1 Billion in Annual Sales Award” earned by NVIDIA Corporation. Both companies were recognized based on their continued demonstration of the best overall financial performance according to specific financial metrics.

GSA’s Private Awards Committee, comprised of venture capitalists and select industry entrepreneurs, chose the “Start-Up to Watch Award” winner by identifying a company that has demonstrated the potential to positively change its market or the industry through the innovative use of semiconductor technology or a new application for semiconductor technology. This year’s winner is Innovium, Inc.

As a global organization, the GSA recognizes outstanding companies headquartered in the Europe/Middle East/Africa and Asia-Pacific regions. Chosen by the leadership council of each respective region, award winners are semiconductor companies that demonstrate the most strength when measuring products, vision, leadership and success in the marketplace. The recipient of this year’s “Outstanding Asia-Pacific Semiconductor Company Award” is MediaTek Inc. and the recipient of this year’s “Outstanding EMEA Semiconductor Company Award” is Movidius.

Semiconductor financial analyst Quinn Bolton from Needham & Company presented this year’s “Favorite Analyst Semiconductor Company Award” to Microsemi Corporation. The criteria used in selecting this year’s winner included historical, as well as projected data, such as stock price, earnings per share, revenue forecasts and product performance.

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today announced worldwide sales of semiconductors reached $30.5 billion for the month of October 2016, an increase of 3.4 percent from last month’s total of $29.5 billion and 5.1 percent higher than the October 2015 total of $29.0 billion. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. Additionally, a new WSTS industry forecast projects roughly flat annual semiconductor sales in 2016, followed by slight market growth in 2017 and 2018.

“The global semiconductor market has rebounded in recent months, with October marking the largest year-to-year sales increase since March 2015,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Sales increased compared to last month across all regional markets and nearly every major semiconductor product category. Meanwhile, the latest industry forecast has been revised upward and now calls for flat annual sales in 2016 and small increases in 2017 and 2018. All told, the industry is well-positioned for a strong close to 2016.

Regionally, year-to-year sales increased in China (14.0 percent), Japan (7.2 percent), Asia Pacific/All Other (1.9 percent), and the Americas (0.1 percent), but decreased in Europe (-3.0 percent). Compared with last month, sales were up across all regional markets: the Americas (6.5 percent), China (3.2 percent), Japan (3.0 percent), Europe (2.2 percent), and Asia Pacific/All Other (2.0 percent).

Additionally, SIA today endorsed the WSTS Autumn 2016 global semiconductor sales forecast, which projects the industry’s worldwide sales will be $335.0 billion in 2016, a 0.1 percent decrease from the 2015 sales total. WSTS projects a year-to-year increase in Japan (3.2 percent) and Asia Pacific (2.5 percent), with decreases expected in Europe (-4.9 percent) and the Americas (-6.5 percent). Among major semiconductor product categories, WSTS forecasts growth in 2016 for sensors (22.6 percent), discretes (4.2 percent), analog (4.8 percent) and MOS micro ICs (2.3 percent), which include microprocessors and microcontrollers.

Beyond 2016, the semiconductor market is expected to grow at a modest pace across all regions. WSTS forecasts 3.3 percent growth globally for 2017 ($346.1 billion in total sales) and 2.3 percent growth for 2018 ($354.0 billion). WSTS tabulates its semi-annual industry forecast by convening an extensive group of global semiconductor companies that provide accurate and timely indicators of semiconductor trends.

Vigorous M&A activity in 2015 and 2016 has reshaped the landscape of the semiconductor industry, with the top companies now controlling a much greater percentage of marketshare.  Not including foundries, IC Insights forecasts to top five semiconductor suppliers—Intel, Samsung, Qualcomm, Broadcom, and SK Hynix— will account for 41% marketshare in 2016 (Figure 1).  This represents a nine-point increase from the 32% marketshare held by the top five suppliers ten years ago. Furthermore, the top 10 semiconductor suppliers are forecast to account for 56% marketshare in 2016, an 11-point swing from 45% in 2006, and the top 25 companies are forecast to account for more than three-quarters of all semiconductor sales this year.

semiconductor sales leaders

Figure 1

Following an historic surge in semiconductor merger and acquisition agreements in 2015, the torrid pace of transactions eased a bit in the first half of 2016.  However, 2016 is now forecast to be the second-largest year ever for chip industry M&A announcements, thanks to three major deals struck in 3Q16 that have a combined total value of $51.0 billion.  These deals were SoftBank’s purchase of ARM, Analog Devices’ intended purchase of Linear Technology, and Renesas’ potential acquisition of Intersil. With the surge in mergers and acquisitions expected to continue over the next few years, IC Insights believes that the consolidation will raise the shares of the top suppliers to even loftier levels.

Leti CEO Marie Semeria today delivered a sweeping, optimistic assessment of a rapidly evolving world where “hyperconnectivity” and the Internet of Things – guided by a “human-centered research approach and symbiotic development strategies” – herald profound changes in the way individuals relate to each other and to the physical world.

Her keynote presentation during the opening session of IEDM 2016, one of the high-tech industry’s most prestigious annual events, was based on her invited paper, “Symbiotic Low-Power, Smart and Secure Technologies in the Age of Hyperconnectivity”.

Marie Semeria, Leti CEO

Marie Semeria, Leti CEO

Semeria presented a comprehensive view of ubiquitous connectivity’s vast potential to bring positive change for individuals, society, companies and governments. She envisions a world in which a human-centered research approach combined with symbiotic development strategies “along different technological axes will foster key innovations that address societal challenges with strong impact.”

IoT at ‘Epicenter of the Revolution’

“The vertiginous pace of technological progress has made civilization enter the age of hyperconnectivity, dramatically changing the way people live, interact, share information, work, travel, take care of their health (and) purchase goods,” she notes. “Enabled by the convergence of miniaturization, wireless connectivity, increased data-storage capacity and data analytics, the Internet of Things (IoT) has become the epicenter of a profound social, business and political revolution.”

The IoT, with billions of easy-access and low-cost connected devices, “has transformed the world into a truly global village, enabling people and machines to interact in a symbiotic way – anytime, anywhere – with both the physical and cyber worlds,” she notes. “A new economy has emerged, as new product-as-a-service business models have been enabled by smart, connected products, creating substitutes for product ownership.”

In R&D strategies where technologies are developed symbiotically, the technologies’ associated innovation potential strongly increases. “Leti masters hardware and software technologies that gather, filter, process, store, transfer and analyze information in an efficient way. What is crucial today is not to consider these technologies as independent from one another,” Semeria says.

In her paper, Semeria also addresses the many global challenges that predate the hyperconnectivity era, such as climate change, poverty, diminishing natural resources and pollution, and the major challenges that rapid technological advancements have enabled. These include the negative side effects of cyber-technologies, ranging from “digital addiction” of some young people to cyber attacks on systems and threats to personal data and privacy.

Security Is a Crucial Component

“The hyperconnected society presents challenges which will require collective learning and adaptation, by both the main actors and the users, to develop the literacy and regulatory frameworks that will recreate and sustain the right balance between accountability and freedom for all agents, people and corporations,” Semeria says.

“Hypersecurity is a crucial component needed to counteract the surge in cyber attacks, which affect our modern societies, critically dependent on cyber-infrastructures (banking, communication, business, etc.). Security and unobtrusive surveillance technologies are being developed to provide and maintain peaceful everyday lives.”

Citizen Concerns

Data breaches and unapproved use of private information have raised widespread concerns about privacy. “Information is sometimes exchanged for commercial or national security purposes, leading citizens to perceive a loss of control, freedom and privacy,” Semeria notes. “The hyperconnected society presents challenges which will require collective learning and adaptation, by both the main actors and the users, to develop the literacy and regulatory frameworks that will recreate and sustain the right balance between accountability and freedom for all agents, people and corporations.”

The hyperconnectivity value chain, which includes sensing, communication, computing and storage, energy harvesting, security and services, depends on key building blocks ranging from sensors to communication networks, including 5G, which is expected to provide a full-scale IoT that offers immersive services regardless of geography and time zones. Leti has strategic programs in each of the value chain fields and participates in the core of Europe’s 5G innovation initiatives.

A Major Role for RTOs

Semeria points out that research and technology organizations (RTOs) like Leti are playing a vital role in the twin pursuits of making the IoT and networks both more efficient and more secure. In the 50 years since its founding, Leti has shaped its strategy to tackle the main challenges presented by the evolution of society and the economic and industrial sectors.

RTOs “are ideally positioned to address and harmonize growing individual, private needs and global societal challenges, because they are neither embedded public administration organizations nor industrial corporate labs guided by private interests,” Semeria notes.

Biomimicry’s Natural Role

In addition to partnerships with companies on specific solutions to make them more competitive and its participation in EU research programs with broader strategic impact, Leti pursues multiple lines of inquiry with an eye on technologies for the future. These include bio-mimicry, which aims to adapt for commercial use the sensing efficiencies that insects have developed over billions of years of evolution.

“Bio-inspired ideas, which are currently experiencing an exponential growth, represent an area with very high hopes,” Semeria says.

A simple solution-based electrical doping technique could help reduce the cost of polymer solar cells and organic electronic devices, potentially expanding the applications for these technologies. By enabling production of efficient single-layer solar cells, the new process could help move organic photovoltaics into a new generation of wearable devices and enable small-scale distributed power generation.

polymer-solar_2021

Developed by researchers at the Georgia Institute of Technology and colleagues from three other institutions, the technique provides a new way of inducing p-type electrical doping in organic semiconductor films. The process involves briefly immersing the films in a solution at room temperature, and would replace a more complex technique that requires vacuum processing.

“Our hope is that this will be a game-changer for organic photovoltaics by further simplifying the process for fabricating polymer-based solar cells,” said Bernard Kippelen, director of Georgia Tech’s Center for Organic Photonics and Electronics and a professor in the School of Electrical and Computer Engineering. “We believe this technique is likely to impact many other device platforms in areas such as organic printed electronics, sensors, photodetectors and light-emitting diodes.”

Sponsored by the Office of Naval Research, the work was reported December 5 in the journal Nature Materials. The research also involved scientists from the University of California at Santa Barbara, Kyushu University in Japan, and the Eindhoven University of Technology in The Netherlands.

The technique consists of immersing thin films of organic semiconductors and their blends in polyoxometalate (PMA and PTA) solutions in nitromethane for a brief time – on the order of minutes. The diffusion of the dopant molecules into the films during immersion leads to efficient p-type electrical doping over a limited depth of 10 to 20 nanometers from the surface of the film. The p-doped regions show increased electrical conductivity and high work function, reduced solubility in the processing solvent, and improved photo-oxidation stability in air.

This new method provides a simpler alternative to air-sensitive molybdenum oxide layers used in the most efficient polymer solar cells that are generally processed using expensive vacuum equipment. When applied to polymer solar cells, the new doping method provided efficient hole collection. For the first time, single-layer polymer solar cells were demonstrated by combining this new method with spontaneous vertical phase separation of amine-containing polymers that leads to efficient electron collection at the opposing electrode. The geometry of these new devices is unique as the functions of hole and electron collection are built into the light-absorbing active layer, resulting in the simplest single-layer geometry with few interfaces.

“The realization of single-layer photovoltaics with our approach enables both electrodes in the device to be made out of low-cost conductive materials,” said Canek Fuentes-Hernandez, a senior research scientist in Kippelen’s research group. “This offers a dramatic simplification of a device geometry, and it improves the photo-oxidation stability of the donor polymer. Although lifetime and cost analysis studies are needed to assess the full impact of these innovations, they are certainly very exciting developments on the road to transform organic photovoltaics into a commercial technology.”

By simplifying the production of organic solar cells, the new processing technique could allow fabrication of solar cells in areas of Africa and Latin America that lack capital-intensive manufacturing capabilities, said Felipe Larrain, a Ph.D. student in Kippelen’s lab.

“Our goal is to further simplify the fabrication of organic solar cells to the point at which every material required to fabricate them may be included in a single kit that is offered to the public,” Larrain said. “The solar cell product may be different if you are able to provide people with a solution that would allow them to make their own solar cells. It could one day enable people to power themselves and be independent of the grid.”

Organic solar cells have been studied in many academic and industrial laboratories for several decades, and have experienced a continuous and steady improvement in their power conversion efficiency with laboratory values reaching 13 percent – compared to around 20 percent for commercial silicon-based cells. Though polymer-based cells are currently less efficient, they require less energy to produce than silicon cells and can be more easily recycled at the end of their lifetime.

“Being able to process solar cells entirely at room temperature using this simple solution-based technique could pave the way for a scalable and vacuum-free method of device fabrication, while significantly reducing the time and cost associated with it,” said Vladimir Kolesov, a Ph.D. researcher and the paper’s lead author.

Beyond solar cells, the doping technique could be more broadly used in other areas of organic electronics, noted Ph.D. researcher Wen-Fang Chou. “With its simplicity, this is truly a promising technology offering adjustable conductivity of semiconductors that could be applied to various organic electronics, and could have huge impact on the industry for mass production.”

Also at Georgia Tech, the research involved professors Samuel Graham and Seth Marder, both from the Center for Organic Photonics and Electronics. Beyond Georgia Tech, the project also involved Naoya Aizawa from Kyushu University; Ming Wang, Guillermo Bazan and Thuc-Quyen Nguyen from the University of California Santa Barbara, and Alberto Perrotta from Eindhoven University of Technology.

Within a highly competitive landscape due to a strong price pressure, most of the LED companies are looking for business opportunities and adopt different strategies of development. Vertical integration, product, application and activity diversification. New relays of growth are required for LED players to survive.

From a packaging point of view, more and more packaged LED manufacturers selected the vertical integration strategy to move towards the module level and add more and more value in their LED components.

Under the new report titled LED Packaging 2016: Market, Technology and Industry Landscape report, Yole Développement (Yole) reviews the LED industry and market status. The “More than Moore” market research and strategy consulting company Yole, details process flows and related technologies in LED packaging. Yole proposes also a comprehensive analysis of the cost reduction and its impact at the LED packaging level.

According to Yole’s analysts, the packaged LED market represented a revenue of nearly US$15.7 billion in 2015. This industry should grow to a size of nearly US$18.2 billion by 2020.

led packaging revenue

Following the overcapacity caused by the recent LED TV crisis and the entry of Chinese players, industry consolidation was expected to decrease competition and stabilize price erosion. This eventually happened in China during 2014 and 2015, but with unforeseen effects on the overall industry. Indeed, several smaller players went bankrupt and many midsize players have since been acquired, leading to a situation where dozens of companies are having “going-out-of business” sales. This has triggered strong price decline and, naturally, other LED players had no choice but to match the price trend initiated by the Chinese industry.

ASP for low and mid power LEDs declined 30% – 40% in the second half of 2015. In parallel ASP for high power LEDs, though less affected, still declined 20% – 30%. Globally, 2015 was a rough year for the LED industry, with packaged LED revenue declining for the first time ever: from US$15.1 billion in 2014 to US$15 billion in 2015.

This decrease was emphasized by lower-than anticipated demand in the LED backlight and LED lighting markets. Moreover, strong evolution in currency exchange rates due to the US dollar’s rise contributed to many players’ declining revenue.

2016 has seen the industry begin recovering, and packaged LED ASPs have mostly stabilized for highly-commoditized stock keeping units like the low-power 2835 and mid-power 5630.

Higher power grades for lighting applications are seeing increasing demand, but also stiffer competition, which likely will lead to a significant ASP drop as competition intensifies.

“Thus we expect the packaged LED market to show moderate growth in the coming years, reaching US$18.5 billion in 2021 (CAGR 2016 – 2021: +3.4%)”, explains Pars Mukish, Business Unit Manager at Yole. 

LED packaging market is still a strong opportunity for materials suppliers. Indeed, LED packaging requires specific materials in agreement with application requirements.

Regarding packaging substrates, the high power density of devices induces the use of ceramic substrates, a market that will grow from nearly US$684 million in 2015 to US$813 million in 2021, according to Yole’s LED packaging report.

Encapsulant/optic materials will follow the same trend: Yole’s analysts announce US$400 million in 2015 and US$526 million in 2021. This market segment is driven mostly by the increased use of silicone material offering better reliability/lifetime than traditional epoxy material.

In parallel, with major YAG IP expiring from 2017, the phosphor market will face strong commoditization and price pressure. Consequently, market will only grow from nearly US$339 million in 2015 to US$346 million in 2021.

The LED packaging report (2016 edition) provides a comprehensive overview of all LED packaging aspects. Each step of the packaging process flow including equipment and materials used is described, along with associated trends. Associated technological breakthroughs are also analysed.

Kateeva Co-Founder, President and COO, Dr. Conor Madigan

Kateeva Co-Founder, President and COO, Dr. Conor Madigan

Kateeva, the OLED production equipment leader, today announced that President and COO, Conor Madigan, Ph.D., was named “Inventor of the Year” for 2016 by the Silicon Valley Intellectual Property Law Association (SVIPLA). To date, he is listed as an inventor on more than 100 issued and pending patents.

Madigan was recognized for his pioneering work to develop a manufacturing equipment solution to mass produce Organic Light Emitting Diodes (OLEDs). OLED technology has revolutionized the flat panel display industry. It’s the gateway technology for flexible displays that enable bendable, foldable and even roll-able consumer electronics products. In a breakthrough for the display industry, Madigan and his team at Kateeva commercialized the industry’s first inkjet printer engineered specifically to mass produce OLEDs. The solution, called the YIELDjet platform, made high-volume OLED production cost-effective for the first time, giving display manufacturers an essential tool to accelerate their adoption of the transformative technology.

The SVIPLA has extended the annual award since 1977. Recipients include individuals whose innovations have changed industries and created new ones. Among them are the inventors of the barcode, the blue LED, and other esteemed contributors to the advancement of science and technology.

Madigan co-founded Kateeva in 2008 following a decade of OLED-related research at MIT, where he also earned his Ph.D. degree. Since then, he and the Kateeva team have accumulated more than 200 issued and pending patents surrounding the YIELDjet platform and related products.

“Given the immense talent in Silicon Valley, selecting a winner was no easy task,” said SVIPLA President, Carlos Rosario. “Conor is an obvious choice, however. Not just because his inventions helped set the display industry on a game-changing technology transition, or that he’s perpetually contemplating ways to enable new display breakthroughs. But also because he combined technical ingenuity with practical execution. That’s the difficult part. Pretty soon, when consumers can fold their laptops into a wallet-size square, or unfurl their smartphones to form a sturdy notebook, they’ll owe much of that innovation to Kateeva. We admire how Conor has built a strong company to commercialize Kateeva IP, and we’re thrilled to name him “Inventor of the Year”.

“I’m honored to be recognized by the SVIPLA,” said Madigan. “Considering the caliber of previous recipients, I’m also humbled. We’re proud of our role in helping display manufacturers shift to cost-effective OLED mass production and seize hold of a large new market opportunity. We did this in the time-honored Silicon Valley way: by applying innovation to solve difficult technical problems that conventional technology solutions couldn’t master. Thanks to the efforts of everyone at Kateeva, we were able to deliver a complex product to customers that is highly enabling and differentiated by valuable IP. For that collective achievement, I share the accolade with my colleagues.”

YIELDjet is trademarked by Kateeva, Inc.

Integrated circuit sales for connections to the Internet of Things are forecast to grow more than three times faster than total IC revenues during the last half of this decade, according to IC Insights’ new 2017 Integrated Circuit Market Drivers report.  ICs used to embed Internet of Things (IoT) functionality into a wide range of systems, sensors, and objects are expected to generate sales of $12.8 billion in 2016, says the new report, which becomes available this week.

Between 2015 and 2020, IoT integrated circuit sales are projected to rise by a compound annual growth rate (CAGR) of 13.3% compared to 4.3% for the entire IC market, which is projected to reach $354.7 billion in four years versus $287.1 billion last year, based on the forecast in the 492-page report.  As shown in Figure 1, strong five-year IC sales growth rates are also expected in automotive (a CAGR of 10.3%), medical electronics (a CAGR of 7.3%), digital TVs (a CAGR of 5.9%), and server computers (a CAGR of 5.4%).

Cellphone IC sales—the biggest end-use market application for integrated circuits—are expected to grow by a CAGR of 4.8% in the 2015-2020 period.  Saturation in smartphone markets and economic weakness in some developing regions are expected to curb cellphone IC market growth in the next four years after sales increased by a CAGR of 10.8% between 2010 and 2015.  Meanwhile, weak and negative IC sales growth rates are expected to continue in standard personal computers, set-top boxes, touchscreen tablets, and video game consoles.

The new 2017 IC Market Drivers report shows 2016 integrated circuit sales for IoT applications climbing nearly 19% compared to 2015 to an estimated $12.8 billion, followed by the automotive segment increasing about 12% to $22.9 billion, medical electronics rising 9% to $4.9 billion, and digital TV systems growing 4% to $12.9 billion this year.  The report estimates IC sales growth in server computers being about 3% in 2016 to $15.1 billion, cellphones being 2% to $74.2 billion, and set-top boxes being 2% to $5.7 billion.  Meanwhile, standard PC integrated circuit sales are estimated to be down 5% in 2016 to $54.6 billion while video game console IC revenues are expected to finish this year with a 4% drop to $8.9 billion and tablet IC sales are on track to decline 10% to $12.1 billion in 2016, according to IC Insights’ new report.

Figure 1

Figure 1