Market Overview

IC Insights: Texas Instruments Retains Analog Leadership, NXP Outperforms Market

Share:
IC Insights: Texas Instruments Retains Analog Leadership, NXP Outperforms Market

Texas Instruments Incorporated (NASDAQ: TXN) maintains its analog leadership with 18 percent market share, while NXP Semiconductors NV (NASDAQ: NXPI) sales outperformed the total analog market by the widest margin, according to IC Insights, which ranked leading analog IC suppliers for 2015.

Texas Instruments clocked $8.3 billion in analog sales last year — a clear proof that its long-term strategy is bearing fruits. In 2009, Texas Instruments bought 300 million manufacturing tools from "defunct Qimonda," and in 2010, it acquired two wafer fabs operated by Spansion in Aizu-Wakamatsu, Japan, and 200 million fab in China from Cension Semiconductor. In April 2011, the company acquired its key rival National Semiconductor for $6.5 billion.

Related Link: Texas Instruments Launches Highest Power Density 12-V, 10-A, 10-MHz DC/DC Converter

Ranking Changes

Among the key changes, Infineon Technologies AG (ADR) (OTC: IFNNY) moved up one place on IC Insights' list to become the second-largest analog supplier and Skyworks Solutions Inc (NASDAQ: SWKS) moved up two spots to number three on the list.

Meanwhile, STMicroelectronics NV (ADR) (NYSE: STM) slipped from number two in 2014 to number five in the 2015 ranking "following its 13 percent decline in analog sales due to soft equipment sales (computer, consumer, automotive, industrial) among its primary customers."

"Collectively, Infineon, NXP, and ST — Europe's three-largest IC suppliers — accounted for 15 percent analog marketshare last year," IC Insights said.

More In-Depth Look At Top-Ranking Analogs

Skyworks benefited from design wins with smartphones providers around the world. Skyworks Solutions makes analog and mixed signal semiconductors for Apple Inc. (NASDAQ: AAPL), SAMSUNG ELECTRONIC KRW5000 (OTC: SSNLF) and other suppliers of mobile devices.

"Many of Skyworks' power amplifier components are found in Apple's iPhone 6 models. It has been estimated that Skyworks supplies $4 worth of content for every iPhone 6 handset," the report said.

Ranked number four, Analog Devices, Inc. (NASDAQ: ADI)'s analog sales grew 2 percent last year, which allowed it capture 6 percent share. The report said, "One of its key analog ICs is a device that enables 3D/Force Touch, a feature available on the Apple Watch, the latest iPhones, and new generations of the iPad."

Maxim Integrated Products Inc. (NASDAQ: MXIM) and NXP Semiconductors NV (NASDAQ: NXPI) were ranked sixth and seventh, respectively, with market share of 4 percent each. With a 10 percent increase, NXP's analog sales outperformed the total analog market by the widest margin.

Related Link: CLSA Initiates Coverage On Texas Instruments At Underperform, Announces $60.00 PT

Linear Technology Corporation (NASDAQ: LLTC), ON Semiconductor Corp (NASDAQ: ON) and Renesas Electronics Corp (OTC: RNECY) were ranked eighth, ninth and tenth, respectively. Linear has a 3 percent market share, while ON Semi and Renesas capture 2 percent share each.

Collectively, these 10 companies accounted for 56 percent of global analog sales last year, down slightly from 57 percent in 2014.

Overview

"The 2015 analog market grew 2 percent to $47.0 billion," IC Insights summarized. IC Insights expects the total analog market to grow 4 percent in 2016 to $49.1 billion, surpassing the $50.0 billion mark for the first time in 2017. The firm expects analog sales to reach an expected $51.4 billion. From 2015 to 2020, IC Insights sees the analog market growing "at a compound annual growth rate of 6 percent, one point higher than the total IC market."

Latest Ratings for AAPL

DateFirmActionFromTo
Aug 2019Initiates Coverage OnEqual-Weight
Jul 2019MaintainsHold
Jul 2019MaintainsBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Aizu-Wakamatsu Cension SemiconductorAnalyst Color Long Ideas Top Stories Analyst Ratings Tech Trading Ideas Best of Benzinga

 

Related Articles (AAPL + ADI)

View Comments and Join the Discussion!

Has Twitter Finally Found Its Wings? The Stock Is Breaking Out Of A Month-Long Consolidation

Cowen Lifts Intercept's Price Target To $215 Following Ocaliva Approval