Vishay’s recent acquisition of International Rectifier’s Power Control Systems business could see it surge past its competitors and become the world’s largest supplier of power semiconductors (discretes and modules), according to analyst firm IMS Research.
In 2005, Vishay was ranked as the sixth largest supplier of power semiconductors, with an estimated market share of 5.7% and revenues significantly lower than market leader Infineon Technologies. However, the purchase of IR’s ‘non-focus’ business, with revenues of roughly $300 million could see the company increasing its share of the market to between 8% and 9% in 2007.
“Infineon are unlikely to concede its position as the largest supplier of power semiconductor products easily” noted Ash Sharma, author of IMS Research’s 2006 study The Global Market for Power Semiconductors. “Since 2003, Infineon has maintained its position at the top of the market share table and has increased its share of the global market significantly each year through organic growth, although profitability levels are considerably lower than for some other suppliers”, added Sharma.
The latest annual report from IMS Research (published September 2006), contains over 200 forecasts and 100 market share tables. The study provides a valuable insight to the market and highlights how IR’s decision to focus its efforts on certain market sectors has seen it achieve high profit margins.