In such a market environment, it was inevitable that suppliers’ shares of the market would change. According to IMS Research’s latest results, there was a shift in supply to the global market for power management and driver ICs; Linear Technology moved from 6th to 3rd position globally, increasing share of total world revenues by more than 1% from 2009 to 2010. Infineon Technologies, ST Microelectronics and National Semiconductor each lost share in this market. In the merchant market for power supplies, supplier rankings remained largely unchanged, though Delta Electronics extended its lead as the largest supplier, increasing its share by 0.8% of the total from 2009 to 2010.

At the middle of 2011, it seems that growth in the power market has slowed somewhat from 2010. This makes it less likely that there will be much change in the market share of suppliers, from the number of design wins. However, IMS believes there are other factors which will continue to disrupt the competitive landscape.

Consolidation of supply in the industry is nothing new, but many recent acquisitions and mergers could have a large market impact. In 2010, Renesas merged with NEC, strengthening its position in both the power semiconductor and power IC markets; and ABB acquired Polovodice, adding to its power module portfolio. Already in 2011 there have been announcements in the power market which look set to change things dramatically. In early April, Texas Instruments announced its plans to acquire National Semiconductor, a move which will strengthen its position as leader in the power management and driver IC market and increase its share to more than 15% of the market. Other activities in 2011 include the purchase of Sanyo Semiconductor by On Semiconductor; and International Rectifier’s entrance into the digital power market via its acquisition of ChiL Semiconductor.

In addition to supplier consolidation, competition within power markets has grown. Alternatives to DC-DC power supplies, in the form of encapsulated modules produced by semiconductor suppliers, continue to capture a share of this market. Larger scale integration in also increasing: suppliers of power ICs are developing PMICs with multiple integrated ICs, offering a solution at lower cost and with a smaller footprint. These components will capture a part of the market currently held by individual power ICs.

In general, the power markets continue to see new suppliers each year, often small Asian start-ups which are able to produce products at low cost, pushing market prices down. With the level of consolidation in the industry, however, and the efforts to drive down costs via integration, IMS Research believes that it will become increasingly difficult for these new companies to enter some markets, though prices will remain under pressure.

Provided by Ryan Sanderson, Senior Research Analyst, IMS Research’s Power & Energy Group

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