Market Trends of Taiwan Analog Integrated Circuits Industry
Application-specific ICs Expected to Witness Significant Growth
- Application-specific ICs for infotainment include equipment like control and safety electronics, such as airbags, LiDAR or light detection and ranging, backup and circumferential camera systems, security electronics, power train engine management electronics, and lighting, such as the head and taillights. LiDAR is primarily used for the advanced driver assistance systems (ADAS) in automobiles for the driver's convenience, with a human-machine interface for safe guidance and smooth operation.
- As LiDAR adoption gains momentum, several carmakers have announced or are poised to integrate this technology into their future vehicles, fueling the demand for analog ICs. As the adoption of ADAS and autonomous driving technology rises, Taiwan-based III-V semiconductor suppliers predict a sustained growth in automotive LiDAR demand. In April 2024, Lumotive teamed up with electronics distributor EDOM to boost the adoption of solid-state Lidar technology in Taiwan. The LCM LiDAR offers high-resolution, wide-angle sensing in a compact, solid-state design and plays a significant role in creating safer and more reliable vehicles.
- Analog ICs or linear ICs are often used as audio-frequency (AF) and radiofrequency (RF) amplifiers. The audio amplifier chip plays a pivotal role in the speaker system in smartphones and tablets. This chip energizes the speaker, causing the speaker driver to oscillate and generate sound by agitating the air. The growing penetration of these devices is expected to accelerate the demand for analog ICs.
- In the 5G wireless cellular networks, smartphone battery efficiency and optimal power utilization have emerged as important factors contributing to the growth of analog ICs for power management. The growing investments in 5G networks have significantly increased data transfer speeds and internet penetration. According to Ookla, Chunghwa Telecom's 5G network covers 97.6% of Taiwan's locations. In Q3 2023, Taiwan's 5G network boasted a median download speed of 265.35 Mbps, outpacing neighboring countries, including Vietnam, the Philippines, China, Hong Kong, and Japan.
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Power Management ICs Expected to Hold Significant Market Share
- Power management general-purpose analog ICs are used to convert, control, and distribute DC power. The dominant function is to convert a source voltage into another voltage to enhance management capability. Some applications of power management general-purpose ICs are linear regulators, switching regulators, voltage references, supervision, sequencing and control, battery charging, and management.
- Vendors are introducing new power management ICs. For instance, Nordic Semiconductor launched nPM1300 in June 2024, the industry's pioneering PMIC, which seamlessly integrates vital system management features designed for low-power embedded designs. This innovation has earned a spot on the prestigious electronics industry awards shortlist, competing in the power product of the year category. Notably, the nPM1300 boasts a distinctive algorithm-driven fuel gauge solution that monitors voltage and current, ensuring precision that surpasses traditional voltage-only fuel gauges.
- Taiwan's local solid supply chain, including the presence of fabless companies and foundries, supports developing and producing power management integrated circuits (PMICs), making the IC's critical component in Taiwan's semiconductor ecosystem. In addition, Taiwan is increasingly focusing on renewable energy sources and sustainable technologies, thus driving the demand for PMIC. PMICs are vital in renewable energy systems, such as managing power in solar panels and energy storage solutions.
- Power management ICs are vital to today's sophisticated consumer electronics system designs. Size and cost continue to be driving factors for engineers for PMICs. With the proliferation of the IoT and distributed wireless networks in Taiwan, manufacturers need to integrate many small sensors and communications nodes while shrinking wireless systems. This is likely to boost the innovations in the market studied.
