Yes! It is true that the semiconductor industry
serves as a driver, enabler and indicator of technological progress. Development
in the industry determines the way we work, transport ourselves, communicate,
entertain ourselves and respond to the environment. There are many
technological advances that are driving the semiconductor industry.
According to International Data Corporation, year of
year growth of the semiconductor industry is slowing down. It shifted from 7.1%
in 2014 to 3.6% in 2015. Between the years 2016-2019, the compounded annual
growth rate (CAGR) of the industry is expected to be 3.1%.
The semiconductor industry is finding it difficult
to stimulate growth. Major players like Intel, NVidia and Ambarella are some of
the main semiconductor players. Overall, worldwide semiconductor sales fell
0.2% on a year over a year basis largely due to the slowdown in China and
currency overheads. Companies with high exposure to the PC market were also hit
hard by low demand and weak holiday sales.
Meanwhile, Apple, a giant, reported its slowest
growth in iPhone sales last quarter and further expects the sales to decline until
the release of iPhone 7.
The biggest names impacted by this include Cirrus
Logic and Qorvo. To combat this, many semiconductor giants are penetrating
through online media for better business. They aim at selling :
On the bright side, companies associated with the
gaming industry are enjoying robust growth.
v Data processing: This comprises of chips used in servers,
computers, printers, and related hardware. However, growth in this segment is
moderated and no breakthrough innovation is expected in the near future.
v Communications: This comprises of chips used in wired
and wireless communication equipment such as smartphones, tablets, and
broadband equipment and electronicproducts
v Consumer electronics: This comprises of chips used in
household appliances, LCD TVs, and gaming consoles.
v Industrial: This comprises of chips used in scanning devices
such as bar code scanners and point-of-sale terminals and medical devices.
v Automotive: This comprises of chips used in electronic
automotive components such as power steering and lighting.
v Military and civil aerospace: This is a specialized segment where
integrated circuits related to a particular application are built.
Despite the ups and downs, analysts believe that the
semiconductor industry is poised to rebound this year. Many of
these names are aggressively pursuing high-growth sectors like 3-D printing or
virtual reality. Later this year, we will also see the new iPhone 7 which could
spur recovery for many of Apple’s suppliers.
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