China MCU Market Overview - big-bit.comChina MCU Market Overview Will Kong Analyst, iSuppli Corporation Eil k @iS liEmail: [email protected] ... e a e eco e g adua y. China MCU Consumption

Applied Market Intelligence

China MCU Market Overview

Will Kong Analyst, iSuppli CorporationE il k @iS liEmail: [email protected]

China Semiconductor Consumption 2007-2013

$120,000 25%Semi Revenue Grow th Rate

$80 000

$100,000

rs 10%

15%

20%

An

$60,000

$80,000

ns o

f Dol

lar

0%

5%

10%

nnual Grow

$40,000Mill

ion

-10%

-5%

0%

wth R

ate

$0

$20,000

2007 2008 2009 2010 2011 2012 2013-20%

-15%

2007 2008 2009 2010 2011 2012 2013

2009 is the toughest year for all semi vendors. China semi consumption is around $72 billion in 2009, declined 4.7% over 2008.iSuppli forecast the semiconductor consumption will rebound from 2010 And the CAGR of China

iSuppli Corporation – 2 Copyright © 2000-2008 iSuppli Corporation. All Worldwide Rights Reserved. Confidential – Patents Pending

iSuppli forecast the semiconductor consumption will rebound from 2010. And the CAGR of China semiconductor consumption is 6.1% from 2008 t o 2013.

Global Semiconductor Consumption Growth 2000-2013

60%

70%Immune from

the .com bubble

40%

50%

60%

Globalization

20%

30%

0%

10%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

-20%

-10%2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

-30%

Global China AP Japan

Notes: The data is actual through 2008 and forecast from Q4 2009


Notes: The data is actual through 2008 and forecast from Q4 2009

Worldwide MCU Consumption, 2007-2013

$18,000

20%

25%MCU Revenue Grow th Rate

$14,000

$16,000

rs

10%

15%

20%

A

$8 000

$10,000

$12,000

ns o

f Dol

lars

-5%

0%

5%

nnual Grow

$4 000

$6,000

$8,000

Mill

ion

-15%

-10%

5% wth R

ate

$0

$2,000

$4,000

-30%

-25%

-20%

2007 2008 2009 2010 2011 2012 2013

.In 2009, MCU consumption revenue is $12 billion, with 25% decline comparing with 2008.We forecast in 2010 the market will rebound with 14% annual growth over 2009, and reached $13.6billion. The market will recover gradually.


e a e eco e g adua y

China MCU Consumption 2007-2013

$3,500 25%MCU Revenue Grow th Rate

$2,500

$3,000

rs

15%

20%

A

$2,000

ns o

f Dol

lars

0%

5%

10%

nnual Grow

$1,000

$1,500

Mill

ion

-10%

-5%

0%

wth R

ate

$0

$500

-20%

-15%

10%

2007 2008 2009 2010 2011 2012 2013

.In China, MCU market also experience a significant decline with -16.4% comparing with 2008.We forecast the annual growth rate will be above 10% in next several years. The situation is much better than other regions.


e s ua o s uc be e a o e eg o s

MCU Consumption Growth Rate by Region 2007-2013

30%

10%

20%

0%

10%

2007 2008 2009 2010 2011 2012 2013

-10%

-30%

-20%

Global China AP Japan

Notes: the AP region excludes China (Mainland and Hong Kong)


China MCU Market share by Product 2006-2013

100%

80%

100%

32 bit MCU

40%

60% 16 bit MCU

8 bit MCU

4 bit MCU

20%

40% 4 bit MCU

0%2006 2007 2008 2009 2010 2011 2012 2013

32 bit MCU’s market share continue to increase in next few years; and 8 bit and 4 bit revenue will be declined.In Worldwide, the trend is more obvious than China.


China MCU Market share by Application, 2006-2013

80%

100%

I d t i l

60%

Industrial

Automotive

Consumer

20%

40%Communications

Data Processing

0%2006 2007 2008 2009 2010 2011 2012 2013

In China, the largest market is consumer and Data processing. Automotive experience the highest growth in next five years, with a CAGR of 15.6% from 2008 to 2013.


MCU Suppliers Ranking in China Market, 2008

2008 Ranking MCU Suppliers 2008 Revenue (M$)

1 Renesas Technology 180

2 Freescale Semiconductor 150

3 Microchip Technology 148

4 NEC Electronics 140

5 Infineon Technologies 103

6 Toshiba 68

7 Atmel 687 Atmel 68

8 Samsung 65

9 STMicroelectronics 58

10 NXP 52

Notes: The revenue is based on Bill-to China


Market Developments in China, 8-bit MCUs

1,200

1,400

s Industrial Electronics

600

800

1,000

ons

of D

olla

rs Industrial Electronics

Automotive Electronics

Consumer Electronics

200

400

600

Mill

i

Communications

Data Processing

0

200

2007 2008 2009 2010 2011 2012 2013

For 8 bit market, China market decline to $923 million in 2009, with 20% decline over 2008. For 8 bit products, Data processing is the largest market. Automotive has the highest growth rate in next five years, with a CAGR of 12.5%


8-bit MCU Market Share in China

Consumption in China Local Design in China

Microchip19%

Microchip20%Others

26%

Freescale9%

Others37%

26%

9%

Atmel7%

Freescale11%

ST4%

Samsung4%

7%

NXP

NEC5%

S lST3%

Nuvoton3%

Renesas5%T hib

Atmel8%

NXP5% NEC

Sunplus4%

4%

RenesasToshiba NXP4%

Sunplus4%

3% 5%Toshiba4%

8%Renesas5%

Toshiba5%


China's Top Application Markets for 8-bit MCUs, Consumption

25% Flat-Panel Monitors Security Systems Input Output Smart Cards

15%

20% Smart Cards Test and Measurement Home Audio System Components Infotainment Air Conditioner

10%

5%

AG

R

Safety and Control

5%08-1

3 C

A

0%-40% -30% -20% -10% 0% 10% 20% 30% 40%

50

-5%

2009 Annual Growth Rate


-10%


1,000

1,200


600

800

ons

of D

olla




200

400Mill

i

Communications

Data Processing

02007 2008 2009 2010 2011 2012 2013


China's Top Application Markets for 16-bit MCUs

40% Infotainment

Security Systems

I O

30%

Input Output

Power Train

Smart Cards

Consumer Appliance

Test and Measurement

20%

3 C

AG

R

Test and Measurement

Safety and Control

10%08-1

0%

25

-10%-40% -20% 0% 20% 40% 60%

Annual Growth Rate



1,000

1,200


600

800

ons

of D

olla




200

400Mill

i

Communications

Data Processing

02007 2008 2009 2010 2011 2012 2013


China's Top Application Markets for 32-bit MCUs

30% Security Systems Video Game Consoles

25%

Input Output Test and Measurement Power Train Medical Electronics Military & Civil Aerospace

20%

CAG

R

Military & Civil Aerospace Safety and Control

15%

08-1

3 C

10%

5%-40% -20% 0% 20% 40% 60%

50


40% 20% 0% 20% 40% 60%

2009 Annual Growth Rate

TAM of MCU in China Aircon Market,2007-2013

$80 25%

TAM for MCU Grow th Rate

$60

$70

s 10%

15%

20%

A

$40

$50

ons

of D

olla

rs

0%

5%

10% nnual Grow

t

$20

$30Mill

io

-10%

-5%

0% th Rate

$0

$10

2007 2008 2009 2010 2011 2012 2013-20%

-15%

2007 2008 2009 2010 2011 2012 2013


TAM of MCU in China E-Meter Market, 2007-2013

$50 25%TAM for MCU Grow th Rate

$40

rs

20%

A

$30

ns o

f Dol

lars

15%

nnual Grow

$10

$20

Mill

ion

5%

10%

wth R

ate

$0

$10

0%

5%

2007 2008 2009 2010 2011 2012 2013


MCU product life cycle

Monopoly Competition

16-bitsale

s

Idea Promotion First Competition Mass ProductionDecline of

Production

4-bit8-bit32-bit

Idea Promotion First Competition Mass Production Production

Research and Development Growth Maturity Decline

Stage One Stage ThreeStage Two Stage Four


MCU Distribute Business Model

Design House

MCU SuppliersPure Distributor

House

Customers

Value Added R llReseller

MCU market is fragment, so it obey the long tail theory,


Long Tail Theory

2,500

Long Tail

1,500

2,000

Dolla

rs

Long Tail

1,000

Mill

ions

of

0

500

ds in s s e ol ent

cs on nts

es

es al e ce er ut ns ng rs s t V os n

g s o s s es er ter ge s s ks Cs m ns o V s ent s ure

ers

r s TH

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s s s ers

ds rs

Sm

art

Car

ds P

ower

Tr a

in M

edic

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roni

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ecur

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yste

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Milit

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& C

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pace

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and

Con

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me

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r Ele

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Man

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Conclusion

Price

ffDifferentiation

Service

BrandBrand

Distribute


Applied Market Intelligence

China MCU Market Overview

Will Kong Analyst, iSuppli CorporationEmail: wkong@iSuppli comEmail: [email protected]

Documents

China MCU Market Overview - big-bit.comChina MCU Market Overview Will Kong Analyst, iSuppli Corporation Eil k @iS liEmail: [email protected] ... e a e eco e g adua y. China MCU Consumption