The worldwide semiconductor industry: Trends and opportunities 2016 Today, the rapid pace of innovation and ever-expending use of technologically advanced devices including smartphones, tablets, flat-screen monitors, smart connected cars and medical devices is multiplying the number of semiconductor components being used around us every day. Digitization, connectivity and the internet of things (IOT) now promise solid growth for the global semiconductor market. Discover how you can develop your business by looking at this market infographic from The Broker Forum.

1. THE WORLDWIDE
SEMICONDUCTOR
INDUSTRY:
TRENDS AND OPPORTUNITIES
By Marie-Claude Veillette
brokerforum.com
Market Study 2016

2. Contents
MARKET OVERVIEW
GLOBAL MARKET SHARE
TOP 20 SEMICONDUCTOR SALES LEADERS – 2016
TRENDS AND OPPORTUNITIES
+ Percent of Semiconductor Demand by End Use
+ Growth by Component
+ Growth by Region
THE “INTERNET OF THINGS” WILL DRIVE
THE GLOBAL SEMICONDUCTOR MARKET
TOP SEMICONDUCTOR EXPORT MARKETS
DEVELOPING YOUR BUSINESS
ON AN INTERNATIONAL SCALE
APPENDIX
02
04
06
08
10
12
14
16

3. Market Overview
Current growth in electronics
production is the main driver
of the global semiconductor industry.
The rapid pace of innovation and
ever-expending use of technologically
advanced devices including
smartphones, tablets, flat-screen
monitors, smart connected cars
and medical devices is multiplying
the number of semiconductor
components being used around
us every day and stimulating global
demand for semiconductors.
Digitization, connectivity and the
Internet of Things (IoT) now promise
solid growth in the long-term
for the global semiconductor market.
After increasing 9.9 percent in 2014
to a record $335.8 billion, global
semiconductor sales fell slightly
in 2015 to $335.2 billion.i
The growth leaders in 2016
For 2016, growth in Optoelectronics (1.8%), Sensors (7.6%), and Analog ICs (1.0%)
is expected to be offset by declines in Memory (-10.2%) and Logic (-2.5%). ii
In its spring 2016 Semiconductor Industry Forecast, the World Semiconductor
Trade Statistics (WSTS) expects the global semiconductor market to continue
declining by 2.4% in 2016 to US$327 billion with growth returning in 2017
and 2018. Growth is expected to return for all major product categories
and regions to reach US$341 billion in 2018, which would yield a year over
year growth of around 2% for 2017 and 2018.
The Americas and Asia-Pacific regions are expected to show the highest growth
rate while continuing to account for approximately 80% of the global
semiconductor market.
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Worldwide Semiconductor
Market Product Sales in 2015
SEMICONDUCTORS
$335,2B
Generic
Purpose
$18,6B
Integrated
Circuits
$274,5B
MOS
$229,3B
Discrets,
Sensors & Opto
$60,7B
Discrets
$18,6B
Opto
$33,3B
Sensors
$8,8B
Micro
$61,3B
Logic
$90,88B
MPU
$43,3B
MCU
$15,5B
Special
Purpose
Logic
$70,2B
Standard
Logic
$20,6B
DSP
$2,5B
Memory
$77,2B
DRAM
$45,0B
Flash
$30,4B
SRAM
$0,4B
Rom’s,
EPROM,
EEPROM
$1,4B
Source: WSTS, 2016

4. Global Market Share
U.S. semiconductor manufacturers are still the leading suppliers of semiconductors
to the global market and enjoy a majority of market share. American companies
also account for 47 percent of the market share of the global semiconductor
manufacturing equipment (SME) sector. Along with Japan and the Netherlands,
these top three countries control over 90 percent of the $37 billion global market. iii
U.S. firms have retained their competitive edge in microprocessors and other
leading edge devices, fending off immense competitive pressure from Japan
and Europe in the face of a severe industry recession in 1985 and 1986. Gains
in market share for memory has allowed American firms to increase their market
domination, garnering them more than half of the total global market share.
However, these firms now face strong competition from South Korean
and Taiwanese companies.
U.S.-based companies hold firm ground in most major markets, accounting
for around half of total market share, but pressure has been mounting
from Asian and European suppliers.
04
49,9% 50,1%
Chinese Market
$98,6B
56,2%
43,8%
Europe Market
$34,3B
56,6%
43,4%
Americas Market
$68,7B
41,9%
58,1%
Japan Market
$31,1B
35,9%
64,1%
Americas Firms Other Firms Source: SIA 2016 Factbook, March 2016
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5. Top 20 Semiconductor
Sales Leaders – 2016
The number of global semiconductor suppliers is still the highest in the United
States, which is home to eight firms, followed by Japan, Taiwan and Europe
with three each, South Korea with two and Singapore with one.
06
USA
01. Intel Corporaঞon +9%
05. Qualcomm -25%
07. Micron -28%
08. TI -5%
15. Apple 10%
16. GlobalFoundries -5%
17. Nvidia 15%
20. AMD -19%
SOUTH KOREA
02. Samsung 0%
06. SK Hynix -30%EUROPE
10. NXP -16%
11. Infineon 7%
13. ST -6 %
JAPAN
09. Toshiba -7%
14. Renesas -4%
18. Sony -12%
TAIWAN
03. TSMC -12%
12. MediaTek 12%
19. UMC -9%
SINGAPORE
04. Broadcom Ltd. -4%
The top 20 semiconductor companies
include three pure-play foundries
and six fabless companies. Excluding
pure-play foundries from the top-20
ranking would allow U.S. based
IDM ON Semiconductor ($817 million),
China-based fabless supplier HiSillicon
($810 million) and Japan-based IDM
Sharp ($800) million to enter
the top 20.
Declines in sales have reduced
revenues for the top-20 semiconductor
companies by 6% year-over-year
in the first quarter of 2016, while
the global semiconductor market
as a whole saw a decline of 7%.
Source: Anysilicon.com, May 23, 2016
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6. Trends and Opportunities
The Internet of Things and the
digitization of consumer products
will stimulate a huge demand
for sensors produced by the
semiconductor industry. Automotive
and communication markets
are expected to be two other major
drivers for the growth of the global
semiconductor market
in the coming years.
Right now, communications products
represent the largest end-market
for the semiconductor industry.
Growth in this area is currently being
driven by demand for smartphones,
tablets, digital televisions, wireless
network infrastructure and will,
in the not too distant future,
be complimented by the Internet
of Things (IoT) - connected devices
in the home or workplace.
The market for connected or smart
devices is expected to grow rapidly and
reach into the billions of dollars
by 2020. This will have a positive
impact on the growth
of the semiconductor industry
and drive semiconductor companies
towards innovation.
The vast majority of electronics
production is concentrated
in the Asia-Pacific region.
As a result, exports to this part
of the world continue to grow faster
than exports to the European Union
and Latin America.
Consumer demand is also driving
growth in emerging markets in Eastern
Europe and Africa.
The industrial market
for semiconductors and electro-medical
devices will also stimulate global
demand for semiconductors.
08
China will continue to lead growth in Asia,
while Japan is expected to grow by only 1.5%
annually. Europe and the Americas should
experience moderate growth, with expected
annual growth rates of 3.9% and 4.5%
respectively in 2019.
Growth in the rest of the world will be expected
to manifest mainly in Taiwan, South Korea
and Singapore.
Source: SIA 2016 Factbook, March 2016
(World Semiconductor Trade Statistics)
Source: Gartner, PwC
Source: Gartner, PwC
COMPOUND ANNUAL GROWTH RATE
(CAGR) 2014-2019
Memories
MPUs & MCUs
Logic
Analog ICs
Discrete
Semiconductors
Sensors &
actuators
Source: PricewaterhouseCoopers, May 2015
GLOBAL SEMICONDUCTOR BILLINGS
(BN $US) FORECAST
Industrial / Gov’t 13%
Consumer 12,8%
PC Computer 29,7%
2015
Total Semiconductor
Market = $335 Billion
Percent of Semiconductor
Demand by End Use
Growth by Component
Global Semiconductor
Consumption Forecast
Memories
MPUs & MCUs
Logic
Analog ICs
Discrete
Semiconductors
Sensors &
actuators
CHINA
60,5%
REST OF THE WORLD
13,7%
AMERICAS
11,4%
EUROPE
9,0%
JAPAN
5,4%
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7. The “Internet of Things”
will drive the Global
Semiconductor Market
With the expected growth
of the Internet of Things (IoT), a huge
opportunity exists for semiconductor
companies to position themselves
for the next phase of growth
in the semiconductor industry.
Most of the chips that will power
the IoT, including crucial components
such as transmitters, sensors,
and memory storage components,
already exist and are used today
in a variety of electronic devices.
But in orderto meet the expectations
that accompany an evolution
in technology, many of them
will have to be redesigned
to consume less energy, incorporate
modern security features,
and be smaller in size and available
to manufacturers at a lower cost.
They will also have to be easier
to integrate into a wider variety
of tiny devices, not just PCs
and smartphones: tomorrow’s home
appliances, security systems, smart
thermostats, smart watches, fitness
bands and trackers, smart glasses
and wearable medical devices
will all use semiconductor technology.
The IoT is now poised to be integrated
with technologies beyond consumer
electronics into other markets
and applications as well. Recent
technological advances such
as self-driving cars and drones
represent just the beginning
of the endless possibilities that
a network of smart connected
devices can provide in improving
our productivity, safety and overall
quality of life.
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Connected devices
by 2020 (million)
According to industry analysts
at IDC, these 50B connected devices
will drive the total IoT market
to US$8.9 trillion by 2020, with three
segments – consumer electronics,
automotive and healthcare –
accounting for more than 50%
of the total market in revenue terms.
A recent PwC analysis suggests that
around US$33 billion will come from
“IoT related opportunities” by 2019.
This accounts for almost 34%
of the total increase in semiconductor
revenues forecasted across
all applications – US$336 billion
in 2014 to US$432 billion by 2019.
Source: Industry Forecasts Compilation, 2020 forecast from IDC, PwC analysis.
2014
5,400
5,500
5,000
4,100
3,200
2020
30,000
6,000
3,300
Internet of Things TV Tablets Smartphones PCs
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8. Top Semiconductor
Export Markets
China represents half of the world market for semiconductors.
Domestic semiconductor production in China only supplies nine percent
of the country’s consumption needs, with imported products supplying the balance.
China represents the largest and fastest growing export market for semiconductors,
on the strength of the country’s extremely large and diverse electronics
manufacturing industry.
South Korea has a vibrant consumer electronics manufacturing sector,
as well as large automobile manufacturing industry.
Singapore is a logistical center for the Southeast Asia region.
Germany’s robust industrial and automotive sectors are driving demand
for semiconductors.
Mexico is a top market for semiconductors because of its huge electronics
and auto assembly operations that serve North American markets.
Taiwan has a large flat-panel display industry and is a hub for semiconductor
testing and packaging.
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Top Semiconductor Export
Markets for 2016
1. China
2. Japan
3. South Korea
4. Singapore
5. Taiwan
6. Malaysia
7. Germany
8. Mexico
9. Thailand
10. Vietnam
11. India
12. Brazil
13. France
14. Indonesia
15. Netherlands
16. Philippines
17. Canada
18. Czech Republic
19. Australia
20. Hungary
21. United Kingdom
22. Poland
23. Italy
24. Switzerland
25. Ukraine
26. Israel
27. Sweden
28. Slovakia
29. Russia
30. Turkey
31. Austria
32. Belgium
33. Ireland
34. South Africa
35. Spain
36. Romania
37. Finland
38. Portugal
39. Estonia
40. Denmark
Europe
Asia
Africa
Oceania
Americas
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9. Developing your Business
on an International Scale
Established electronic components
trading networks such as
www.brokerforum.com carry
an impressive inventory of electronic
components.
The Broker Forum, for example,
counts over 60 million line items
of in-stock electronic components
available for developers working
in industries that are related
to the Internet of Things. Whether
a developer requires a sensor, battery,
connector, display, relay, diode,
transistor, memory upgrade
or semiconductor, The Broker Forum
can meet the sourcing needs
of companies looking to become
a part of the emerging, multi-trillion
dollar IoT industry.
14
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marketplace for qualified buyers and vendors in the electronic components
industry. Our team can help you seize opportunities that you would not otherwise
have access to. Our expertise is available 24 hours a day, 5 days a week.
Contact us today for a free trial
1-800-673-1712 – North America
450-449-8713 – Americas & Europe
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info@brokerforum.com
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Our global marketplace
for buyers and vendors
in the electronic components
industry allows you to:
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10. Appendix
Sources
+ World Semiconductor Statistics (WSTS) Press Releases, May 24 2016
+ The Semiconductor Market: 2015 Performance, 2016 Forecast,
and the Data to Make Sense of It
+ SIA 2016 Factbook”, Semiconductor Industry Association, March 2016.
Top 20 Semiconductor Companies 2016, May 23 2016
+ The Internet of Things: The next growth engine for the semiconductor
industry, pwc, May 2015
Citations
i Global Semiconductor Sales Top $335 Billion in 2015” Feb 1, 2016,
SIA Press Release.
ii WSTS World Semiconductor Trade Statistics, Spring 2016 Semiconductor
Market Forecast
iii 2016 ITA Semiconductors and Semiconductor Manufacturing Equipment
Top Markets Report
trade.gov/topmarkets/pdf/semiconductors_top_markets_report.pdf
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