Return to record sales in opto, sensors, power discretes

USA: Despite the disastrous final months of 2008, semiconductor sales of optoelectronics, MEMS-based accelerometers, CMOS image sensors, power transistors, and overall discrete devices set record-high revenue levels last year, based on a detailed market analysis by IC Insights in its new 2009 Optoelectronics, Sensors, and Discretes (O-S-D) Report.

After substantial declines in 2009, these semiconductor markets and product categories are forecast to recover and reach new sales records in the next two years, according to the 2009 O-S-D Report, which becomes available at the end of March.

Collectively, O-S-D sales reached an all-time high of $43.0 billion in 2008, despite the beginning of a major semiconductor recession late in the year. IC Insights' new 280-page report shows 16.4 percent of total semiconductor revenues were generated by the O-S-D markets in 2008.

O-S-D revenue growth continues to outpace IC sales, thanks to strong annual growth rates in a handful of optoelectronics and sensor product categories. By 2013, the O-S-D markets will represent 17 percent of the total semiconductor sales due to a higher compound annual growth rate (CAGR) than IC revenues in the next five years, says the 2009 report. O-S-D sales are expected to rise at a 7 percent CAGR in the 2008-2013 period compared to 6 percent  for ICs.

Nearly all product categories in optoelectronics, sensors/actuators, and discretes were flying higher until November 2008, when the markets fell into a tailspin after the economic crisis deepened in 4Q08. In 2009, optoelectronics sales are now expected to decline 12 percent to $16.9 billion.

The MEMS-heavy sensors/actuator segment is forecast to drop 26 percent to $4.1 billion in 2009, and the commodity-filled discretes segment will fall 21 percent to $14.3 billion, according to IC Insights' projections in the new O-S-D Report.

Total O-S-D sales are forecast to rebound 14 percent in 2010 and increase another 17 percent in 2011, reaching a new record-high of $47.3 billion that year.

Optoelectronics, driven by strong sales momentum in CMOS image sensors, optical network lasers, and high-brightness LEDs, managed to end 2008 with revenues being up 13 percent to a record $19.3 billion for the entire year.

Optoelectronics exceeded discretes sales by $1.1 billion in 2008, marking the first year in history that optoelectronics topped the market for discretes. After falling in 2009, the optoelectronics market will grow 15.4% to a new record-high $19.5 billion in 2010, the O-S-D Report says.

Among the other key findings in 2009 O-S-D Report are:

* Acceleration/yaw sensors, built with microelectromechanical systems (MEMS) technology, crossed the $1 billion sales mark for the first time ever in 2008 and became the largest semiconductor sensor product category. Sales in this category climbed 23 percent in 2008, thanks to tremendous growth in low-cost accelerometers for smartphones and consumer electronics. After a 19 percent drop in 2009, sales in this MEMS-based chip category are forecast to grow 21 percent in 2010, followed by another 24 percent increase in 2011, which will result in a new record high of $1.3 billion that year.

* CMOS image sensor sales recovered in 2008 from a rare decline in 2007. After hitting a record-high $5 billion in 2008, CMOS image sensor sales are expected to drop 10 percent in 2009, but will then bounce back with a 23 percent rise in 2010 to a new record of $5.1 billion.

* Power transistor revenues, led by MOSFET and IGBT products, reached $10.0 billion for the first time ever in 2008, but sales in this discretes category are forecast to drop 20 percent in 2009 due to widespread weakness in all end-use systems markets. Power transistor sales are then forecast to recover in 2010, growing 13 percent, and will reach a new record high of $10.4 billion in 2011.



Source: IC Insights, USA