Real world – not IoT – drives industrial chip ranking

May 14, 2017 // By Peter Clarke
Traditional chip applications rather than the Internet of Things (IoT), alternative realities, or artificial intelligence, drove TI and Infineon to the top of a list of 2016 semiconductor chip vendors ranked by industrial sales, according to Semicast Research.

Texas Instruments                  7.9%
Infineon Technologies            6.6%
Intel                                         5.2%
STMicroelectronics                 5.1%
Analog Devices                       3.7%
NXP Semiconductors              3.5%
Nichia                                      2.8%
Micron Technology                 2.3%
On Semiconductor                  2.0%
Renesas Electronics                1.8%
Top 10 Total                            40.9%
Others                                     59.1%

The industrial chip market was worth $42.2 billion in 2016, up about 4 percent from $40.7 billion in 2015, according to Semicast. TI remains on top of the ranking as it has been since 2012 after its acquisition of National Semiconductor.

Semicast defines the industrial chip market as factory automation, motor drives, lighting, building automation, test & measurement and power and energy, as well as medical electronics and industrial transportation; the aerospace and defense sector is excluded from the analysis.

Analog Devices acquisition of Linear Technology Corp., which closed in March 2017, is likely to push it up to third position alongside Intel, while Renesas's acquisition of Intersil in February 2017 could take it above On Semi in 2017. Clearly there is time for more M&A to have an impact.

Semicast also divides the market into more traditional semiconductor deployments, which it labels 'real world" and semiconductor deployments related to digitization and networking which it labels 'machine world.'

The real world includes measurement, movement, sense and indicate and corresponds to the semiconductor product categories of analog, optoelectronics, power & discretes and sensors. The machine world incudes authentication, control, process, store and communication, which correspond to the product categories of logic, memory, microcontrollers, DSPs and microprocessors.

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