Power management IC tags to firm as demand rises
James Carbone -- Purchasing, 2/19/2004 2:00:00 AM
Increased demand and firming prices will result in the power IC market growing from $5 billion in 2002 to $7 billion in 2006, according to market researcher Venture Development Corp.
Demand will be driven by multiple factors, including the explosive growth of portable electronics equipment such as cell phones, personal digital assistants and MP3 players, which use a lot of power management ICs to increase run times of rechargeable batteries. In addition, the recovery of information technology (IT) spending and the growth in wireless and broadband equipment (which requires highly efficient and compact power management ICs) will boost the market.
For buyers, the increase in power IC demand means prices will firm in 2004. Tags for power ICs fell over the past three years. Prices dropped about 20% in 2002 and 5-8% in 2003. Tags may decline in the first half, but should level off in the second.
The good news is while prices may stop their slide, manufacturers are increasing the functionality and efficiency of power ICs. That often means other parts on a board can be eliminated so the overall cost of the printed circuit board declines.
Consumer electronics equipment will be one of the biggest drivers of the power IC market for years. Mobile cell phone handsets, digital cameras, portable music players and gaming consoles use large quantities of power ICs, says Marianne D'Aquila, a Venture analyst. The devices keep getting more sophisticated, which affects the requirements of power ICs used in the equipment.
"As device functionality increases so do power requirements," says D'Aquila. "OEMs are looking for power ICs that can maximize battery life between charges, minimize charging times, improve battery life and reduce the footprint."
The demand for highly compact portable electronics with more sophisticated functionality has driven the integration of analog and mixed signal devices on the same chip, she says. "Designers are increasingly faced with the balancing act of increasing power requirements from smaller ICs while optimizing efficiency."
To improve functionality and efficiency, chipmakers are integrating MOSFETs, line drivers and discrete components, into single power supply semiconductors. That saves board space and reduces design time, which is critical to portable equipment manufacturers.
IC manufacturers such as Texas Instruments, Fairchild, National Semiconductor and ON Semiconductor see demand for new features in power ICs such as packaging, allowing more functionality and power dissipation in smaller packages. Manufacturers also see demand for more sophisticated drive schemes to power white LEDs, and tighter specifications for fuel gauging, battery charging and programmable output switching regulators.
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