39.9% increase in power management, new energy market will drive growth for 5 years

iSuppli Corporation: Including integrated circuits and discrete devices, power management semiconductor sales in 2010 will reach 31.4 billion US dollars, an increase of 39.9% from 2009's 22.4 billion US dollars. In 2009, sales fell by 15.8%. This year will not only recapture last year's lost ground, but will dwarf the rest of the next four years - no increase of more than 13% in any one year.

In the first half of this year, the growth was sound and the first quarter was exceptionally strong, mainly because of the high demand in the industrial and communications markets, and the shortage of components at the end of 2009 which delayed the delivery of some orders to the beginning of this year. iSuppli's data shows that the growth momentum will continue into the third quarter, and then the growth rate will slow at the end of the year, in line with the normal seasonal characteristics.

In the second half of this year, with the overall improvement of consumer confidence, the growth drivers will come from consumer electronics, wireless and data processing needs. However, iSuppli believes that prices may increase as non-delivery orders decrease and supply takes some time to meet demand.

Strong growth momentum in the power management market will remain until 2014

In the next five years, the growth of power management semiconductors will largely come from a strong alternative energy market that will place inverters at the attention of many suppliers. The inverter is used to convert direct current into alternating current. iSuppli's data shows that the demand for inverters will come from the automotive, solar and wind turbine markets. Sales are expected to increase to more than double by 2014, rising from $2.9 billion in 2009 to $7.2 billion.

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