Top analog chipmakers saw sales decline in 2019, new report says

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Texas Instruments dominated the analog chip market in 2019, with about one-fifth of all sales globally.. However, TI and other top analog makers saw declines over 2018 as part of an overall decline in chips. (TI)

Only 1 of the top 10 analog chip makers saw increased sales in 2019 compared to the prior year, even amid apparent market interest in auto and industrial applications for analog. Analog integrated circuits are used heavily in power systems and wireless modulation.

Part of the 2019 decline had to do with trade differences between China and the U.S., according to an April update in the 2020 McLean Report from IC Insights. 

Semiconductors broadly declined by more than 12% in 2019, according to various sources, with the worst impact on the memory market.

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The decline in analog sales was felt for the top eight contenders, including Texas Instruments sitting on the top of the heap with 19% market share of a $55 billion market for 2019.   

 TI had $10.2 billion in analog integrated circuit sales in 2019, a decline of 5% from 2018 when it pegged $10.8 billion, IC Insights said in a report released May 28.

TI is heavy into analog, with analog making up about 80% of its $12.8 billion in IC sales and 75% of its $13.7 billion in overall semiconductor revenue. 

TI’s analog sales went mostly to industrial applications (36% of sales), smartphones and personal electronics (23%) and auto (21%).  The three segments are “highly profitable and afford TI the best opportunities for growth now and into the future,” IC Insights said, quoting TI.

The only analog producer in the top 10 showing improvement year to year was Microchip, ranked eighth, with 10% growth. Sales reached $1.5 billion in 2019 up rom $1.4 billion in 2018.

IC Insights said Microchip was helped by its acquisition of Microsemi in May 2018.

Analog Devices finished second in the rankings for 2019, with 10% market share and $5.2 billion in sales, down by 6% over 2018. IC Insights quoted ADI saying its analog devices are used in sensor-to-cloud, DC to 100 gigahertz and beyond and nanowatts to kilowatts.  ADI put industrial at the top of its markets (50%) with communication (21%), automotive (16%) and consumer (13%).

The biggest analog sales declines in 2019 went to Skyworks Solutions, Maxim and ON Semi each down 13% from 2018.

European analog makers Infineon, ST Micro and NXP all finished in the top 10, accounting or 18% of the global market share, IC Insights noted.  Infineon ranked third in 2019 with sales nearly $3.8 billion, including 44% for auto and 30% or power management. 

IC Insights specifically noted that Skyworks decline of 13% to $3.2 billion in 2019 was partially blamed on the U.S.-China trade war, with China the second largest regional market for sales.  Many Skyworks customers are makers of smartphones and have a large presence in China. Despite a downturn, the company has accelerated production of new analog chips for 5G smartphones and wireless infrastructure.

 

chart on analog

In addition to wide application in power systems, analog ICs are used for voice and music applications in audio systems.  In wireless applications, analog ICs may function to adapt frequency and modulation changes.

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