Domestic demand for power semiconductors continues to expand

Source: Content from "China Business Times", thank you.

According to the latest report from market research firm TrendForce, China's power semiconductor market grew by 12.8% to RMB 259.1 billion last year. Although there are adverse factors such as the US-China trade war this year, power semiconductors are a demand-driven industry and are less affected. It is estimated that China's power semiconductor market will still grow by 12.2% this year, slightly lower than last year's 12.8%.

Legal persons pointed out that regardless of whether the US-China trade war can be peacefully concluded by the end of the month, the power semiconductor market in mainland China will prioritize increasing self-sufficiency and transfer the original purchase orders from US companies to companies in Taiwan, Japan, etc. According to industry sources, first-tier system manufacturers in mainland China, including Lenovo, Huawei, ZTE, Baidu, etc., will increase the proportion of purchases from local power semiconductor suppliers in Taiwan and mainland China this year to reduce their dependence on US companies. As for MOSFET manufacturers such as Dazhong, Jie Li, Nixon, and Fu Ding in Taiwan, or diode manufacturers such as Taiwan Semiconductor, Qiang Mao, and Dunan, as well as power management IC manufacturers such as Zhixin, Motech, and Onbo, they are all expected to benefit from the continued growth of the power semiconductor market in mainland China and win more orders.

TrendForce analyst Xie Ruifeng pointed out that as a demand-driven industry, power semiconductors will continue to be prosperous in 2019. Although there are still adverse factors such as the trade war, the impact driven by demand is less than that of other IC products. TrendForce estimates that the scale of China's power semiconductor market will reach RMB 290.7 billion in 2019, an increase of 12.2% over 2018, maintaining double-digit growth performance.

Looking ahead to 2019, from the perspective of terminal demand, new energy vehicles will still be the largest source of demand for China's power semiconductor market. According to TrendForce data, China's new energy vehicle production is estimated to be 1.5 million in 2019, a 45% increase over the previous year. The demand for advanced driver assistance systems (ADAS), electronic controls, and charging piles will drive the growth of the power component market. At the same time, the base station equipment required for 5G construction and the rapid development of the Internet of Things and cloud computing after its popularization will generate a long-term and large demand for power semiconductors. In addition, industrial automation planning continues to advance, and the related power supplies, controls, and drive circuits will continue to boost China's power semiconductor procurement.

From the supply side, although 3 to 5 power production lines will enter mass production in 2019, according to TrendForce's estimates, the shortage of power component products in the first three quarters of 2019 is unlikely to improve significantly, and product prices of many manufacturers are expected to continue to rise.

Today is the 1880th issue of content shared by "Semiconductor Industry Observer" for you, welcome to follow.

Moore Elite is a leading chip design accelerator with the mission of "making chips easier to make in China". Its business includes "chip design services, supply chain management, talent services, and incubation services", and its customers cover 1,500 chip companies and 500,000 engineers. We are committed to providing ASIC design and Turnkey solutions, from Spec/FPGA/algorithms to chip delivery, including: chip architecture planning, IP selection, front-end design, DFT, verification, physical design, layout, tape-out, packaging and testing services. Since 2012, our team has been focusing on accumulating technical capabilities to help customers achieve optimal chip performance, and support flexible service models such as Turnkey, NRE, professional consulting and on-site. Moore Elite currently has 250 employees worldwide, with its headquarters in Shanghai and branches in Beijing, Shenzhen, Hefei, Chongqing, Suzhou, Guangzhou, Chengdu, Xi'an, Nanjing, Xiamen, Hsinchu and Silicon Valley.