System-on-a-Chip Technology Moves Ahead
According to new strategic research from Frost & Sullivan, World Consumer System-on-a-Chip Markets, this industry generated revenues of nearly $2 billion in 2000, a 153% increase over 1999. This market is projected to experience explosive growth in the next few years, generating more than $7.5 billion in revenues by 2003.
Despite the high potential for performance gains and system cost reduction, system-on-a-chip implementation remains a design, process, and testing challenge. Manufacturers must overcome these challenges to be successful in this surging market.
The shrinking time-to-market window and spiraling nonrecurring engineering costs point to the need for improving design productivity. The report identifies several ways SOC manufacturers can speed up the time-to-market cycle, including intellectual property-reuse and co-design practices.
The industry's move to platform development will also allow manufacturers to improve productivity.
For more information on report 5540-26, Consumer System-on-a-Chip Markets, please contact Rolf Gatlin at (210) 348-1017 or e-mail [email protected]
Motor Control IC Shipments Near $1 billion
Annual revenues for motor control integrated circuits were more than $900 million in 2000, and is forecast to grow at an average annual rate of 9% according to Venture Development Corporation (VDC). Products include control ICs, motor drivers, and controller/driver combinations and chip sets.
The growth rate for motor controller ICs will be slightly greater than that of IC motor drivers, as price erosion is expected to affect drivers more than control ICs. The fastest growth will come from the controller/driver combinations and chip sets. The vast majority of motor controller ICs utilize PWM output, while IC motor driver output types are dominated by IGBTs.
Component Growth Falls 5% in January
Growth of electronic component orders dropped 5% from December 2000 to January 2001 while order dollars were level with the record averages for the 2000 year. Despite a slowdown that began in the fourth quarter of 2000, overall growth for electronics industries remains strong, historically averaging more than three times that of the gross domestic product (GDP).
Excess inventories, double orders and overly optimistic forecasts, particularly in the cell-phone market, are seen as major factors for the slowdown.
“Sales of electronic components mirror consumer demand for all things electronic,” says Bob Willis, Electronic Components, Assemblies & Materials Association (ECA) president. “In 2001, this demand will be tempered somewhat by overall consumer confidence and the U.S. economy. But demand from abroad, particularly Europe, will remain strong and the electronics industry will grow faster than the overall marketplace.”
January 2001 orders were down more than 30% from the high volumes of January 2000. Still, most manufacturers see 2001 as a positive year for electronic components, particularly in the second half, as inventories and demand approach more reasonable ratios.
ECA's monthly index is derived from weekly order reports from approximately 30 electronic component companies.
For more information, visit the Web at www.ec-central.org.