Press Release

The United States Leads Growing Global Industrial Semiconductor Market, IHS Says

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ENGLEWOOD, Colo. (March 22, 2016) - The industrial semiconductor market will post an 8 percent compound annual growth rate (CAGR), as revenue rises from $43.5 billion in 2014 to $59.5 billion in 2019. Increased capital spending and continued economic growth, especially in the United States, will spur demand and industrial semiconductor sales growth, according to IHS Inc. (NYSE: IHS), the leading global source of critical information and insight. Commercial aircraft, LED lighting, digital video surveillance, climate control, traction and medical devices are driving most of the global demand for industrial semiconductors.

The greatest semiconductor growth will come from LEDs, which is expected to reach $14.5 billion in 2019, stemming from the global LED lighting boom. Discrete power transistors, thyristors, rectifiers and power diodes are expected to hit $7.8 billion in revenue, due to the policy shift toward energy efficiency in the factory automation market.

According to the IHS Industrial Semiconductors Intelligence Service, analog application-specific integrated circuits (ICs) can expect strong growth through 2019, reaching $4.7 billion in industrial markets, especially in factory automation, power and energy, and lighting. Growth will primarily come from various power management product portfolio offerings and device integration from Texas Instruments (TI), Analog Devices (ADI), NXP and other leading semiconductor firms. Microcontrollers (MCUs) are also expected to experience robust growth in the long term, growing from $4.4 billion to $6.3 billion, thanks to advances in power efficiency and integration features.

Total industrial original equipment manufacturing (OEM) factory revenue is forecast to grow at a CAGR of 5 percent, reaching $670 billion in 2019. Industrial OEM factory revenues specifically grew 6 percent in 2015 driven by increased sales in building and home-control, and military and civil aerospace sectors. High-growth categories include LED lighting, climate control, digital video surveillance products and commercial aircraft.

With its comparatively strong global economy, the United States accounted for 30 percent of all semiconductors used in industrial applications in 2015. China was the second largest industrial chip buyer, purchasing about 16 percent of all industrial semiconductors last year.

“Robust economic growth and increased capital spending in the United States is good news for industrial semiconductor suppliers, because they have the world’s largest industrial equipment makers, including General Electric, United Technologies and Boeing,” said Robbie Galoso, Associate Director, Industrial Semiconductors, IHS Technology. “Strong industrial equipment demand will further boost sales of optical semiconductors, analog chips and discretes, which are the three largest industrial semiconductor product segments.”

The IHS Industrial Semiconductors Intelligence Service examines the semiconductor market for industrial electronics, including competitive analyses of the top suppliers and purchasers. For information about purchasing this report, contact the sales department at IHS in the Americas at +1 844 301 7334 or AmericasLeads@ihs.com; in Europe, Middle East and Africa (EMEA) at +44 1344 328 300 or technology_emea@ihs.com; or Asia-Pacific (APAC) at +604 291 3600 or technology_APAC@ihs.com.

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About IHS (www.ihs.com)

IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 140 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs nearly 9,000 people in 33 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. © 2016 IHS Inc. All rights reserved.

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