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Demand for Power Management Semiconductors Will Bounce Back



Demand from industrial equipment and consumer electronics manufacturers will drive the power management semiconductor market for the rest of the year.
Demand for power management chips will rebound in the second quarter after declining sharply at the end of last year, according to researcher IHS.

Revenue for power management semiconductors will grow 6.7 percent to $8 billion in the second quarter compared to $7.5 billion in the first quarter, the researcher reported. Demand will be driven by consumer electronics and industrial equipment manufacturers.

The power management semiconductor market plunged in the fourth quarter last year to $7.5 billion from $8.4 billion in the third. The power management IC revenue had grown for seven consecutive quarters before dropping at the end of last year.

Power management semiconductor revenue for 2012 is expected to reach $32.8 billion, up 2.8 percent from $31.9 billion last year, according to IHS.

Power management semiconductors are used in a wide variety of equipment ranging from computers and cell phones to energy systems that require power management of their electrical supplies, according to Marijana Vukicevic, senior principal analyst for power management at IHS.

“The rising emphasis on portable electronic devices, including the booming sales of media tablets and smartphones, is highlighting the importance of power management semiconductors, which are essential for achieving the heat dissipation, weight and size requirements for such products,” she said.

The power management IC market will recover in the second quarter and continue to grow through the year because consumer demand for portable electronics will rise. In addition, demand is also expected to increase from industrial electronics manufacturers.

The leading power management products in the consumer space will be insulated gate bipolar transistor (IGBT) modules, used to switch electric power in many modern appliances. Power management ICs include voltage regulators and references, drives, power transistors and rectifiers.

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