The power management chip market has a promising future and is expected to enter the fast lane in the second half of 2013

According to IHS, the power management semiconductor market will achieve its fastest growth in two years in the second quarter of 2013, with revenue expected to reach $7.56 billion, up 6.6% from $7.09 billion in the first quarter. The second quarter growth rate will be the highest since at least the beginning of 2011, and the growth rate in the previous nine quarters has never exceeded 3.8%, as shown in Figure 1. This will kick off the expected rapid growth in the second half of the year. There are signs that the industry is emerging from a weak situation.

　　Figure 1: Global power management revenue forecast (in billions of U.S. dollars)

　　This is the first growth after six months of contraction and will be the beginning of good times for the power management industry. The third quarter is expected to see a higher growth rate, and the fourth quarter, which is usually negative, will also see positive growth this year.

　　It's a welcome turnaround from the bleak 2012, when the data-processing industry that dominates the PC market languished, while wireless products overwhelmed the PC market, dragging down the power-management chip industry. As PC sales fell, PC makers cut back on computer production, reducing demand for power-management semiconductors.

　　Data processing and consumer sectors using power management chips will continue to be weak this year, but IHS believes that the wireless and industrial markets will be strong enough to maintain growth throughout the second half of the year.

　　In the wireless sector, power management semiconductors are critical for smartphones and tablets, where the battery life of the devices must be maximized for convenient use. For industrial applications, power management is important to ensure efficient use of energy in complex processes and machinery. In particular, growth will be strong this year in various industrial applications for building and residential controls and automotive lighting.

　　This year, power management semiconductor revenue will increase by 4.8% compared to 2012, after a decrease of 8.2% last year.

　　The power management semiconductor market includes various products that are specifically used to convert, distribute and manage power in electronic systems. Among these products, there are power management integrated circuits such as voltage regulators and reference voltage chips and power interfaces, as well as power interface ICs and dedicated power management ICs. Other important power management products include power discrete devices, such as power transistors greater than 1W; rectifiers greater than 0.5A; and semiconductor thyristors.

　　These semiconductors are used in a variety of industries, including energy generation and distribution, military and civil aviation, home audio system components, medical electronics and automotive applications. In the most familiar consumer field, common devices using power management chips include digital set-top boxes, LCD and plasma TVs, game consoles, flat-panel monitors and PC servers, as well as mobile phones, tablets and regular computers.