As we close the books on 2015 and look out to 2016, the scenario includes a weak semiconductor revenue growth rate, but continued increased unit shipments, which means continued growth in wafer demand. However, the wafer demand growth includes some dynamic changes in the detailed breakout by technology and wafer size.
The Internet of Things is a growing market driver, key to the continued success of the semiconductor industry. With applications ranging from medical and sports monitoring/diagnostics to automotive to industrial and agricultural, there are plenty of opportunities for wide range of semiconductor devices, especially sensors, MEMS and MCUs. In fact, the market for sensor hubs, one of the basic building blocks for IoT, will grow from 1.1B units in 2014 to 6.9B by 2020, a CAGR of 36%.
Analog ICs are critical to nearly all electronic devices. The world electronics market will consume over 121 billion analog ICs in 2015. This translates to several analog ICs per electronic device.
Panel sessions and presentations focus on latest innovations in technology including how board, chip and packaging companies can better function in an integrated, system-level ecosystem
Engineers and product designers face more challenges than ever before in bringing successful products to market. The advent of the IoT requires more features and mobility in new products. At the IMPACT Conference Boards, Chips and Packaging: Designing to Maximize Results, industry executives will highlight ways to solve these challenges.
The Internet of Things promises an unprecedented opportunity for the electronics industry. From front-end devices like roadway sensors to back-end network equipment supporting the rush of new data inputs, electronics are the integral foundation of this new era. More than ever, pressure is on the electronics industry to deliver the right solution at the right time and at the right price. A panel will discuss this important issue during the Semico IMPACT Conference: Designing to Maximize Results, October 13, Computer History Museum, 1401 N Shoreline Blvd., Mountain View, California 94043.
Semico expects to see a stronger market in the second half of 2015, based on strong increases in our IPI index in the second half of 2014. The IPI accurately predicts semiconductor revenue inflection points four quarters in advance. Recent economic events and fears of weakness in some end markets have resulted in substantial downgrades in forecasts from other prognosticators. In the past we too have fallen into this trap only to look back to say that the IPI was more correct. Forecasting the semiconductor market is not for the "faint of heart".
