Infineon Extends Lead in Power Semiconductor Market

According to Infineon Technologies AG of Munich, Germany, it is the market leader in power semiconductors for the twelfth time in a row. Having acquired International Rectifier at the beginning of 2015, Infineon has a 19.2% share of the semiconductor market. According to US market research institute IHS Inc, Infineon and International Rectifier, by way of comparison, had a combined market share in the region of 17.5% in 2013. The firm added that Infineon’s closest competitor has a 7% share of the market.

“Through organic growth and the acquisition of International Rectifier we’ve made our leadership position for power semiconductors even stronger compared to the global competition,” says Dr. Reinhard Ploss, CEO of Infineon Technologies AG. “Our leading technology expertise and our system understanding mean we will profit disproportionately from the forecasted growth.”

The company states that it aims to improve lives with technology that is more effective, more efficient and accessible to all. The firm has a strong technology portfolio of over 25,000 patents and patent applications and boasts 20 manufacturing locations in addition to 32 research and development locations.

Infineon has reported the following results during the 2014 period for the market segments that it serves:

•Infineon’s MOSFET market share rose from 26.4 to 27.8%; the second largest competitor in this segment reached 10.5%.
•Infineon grew its share of the discrete IGBT market from 34.7% to 38.5%; its nearest competitor in this segment achieved 14.1%.
•Infineon is the second-ranked player in the IGBT module segment and raised its market share from 21.4% to 23.2%.

The company has also reported that once again it has been listed in the Dow Jones Sustainability Index in 2015. In addition to this, Infineon has also been included in both the European and the worldwide index, which means that it has been listed alongside the most sustainable firms in the world for the sixth consecutive year.

Dominik Asam is Chief Financial Officer of Infineon Technologies AC. As part of his role, he bears responsibility for the firm’s considerations regarding sustainability. He said: “We have been listed in the Dow Jones Sustainability Index every year without interruption since 2010. We are very pleased about this recognition and about the positive feedback from those investors, to whom sustainability is of special importance.”

North America is still home to Intel, Texas Instruments, Micron, Globalfoundries, Freescale, Fairchild, Microchip, ON Semiconductor, Shin-Etsu MicroSi, as well as significant operations of Samsung, and other manufacturers.

Though these companies are headquartered in North America semiconductor device manufacturing has spread from Texas and California in the 1960s to the rest of the world.  Today leading semiconductor manufacturers typically have facilities all over the world.

According to the SEMI fab database, in 2014 North America accounted for 15 percent, not counting discretes, of the global total installed fab capacity.

Comparing regions across the world, the highest fab equipment spending in 2015 will occur in Taiwan, with US$ 11.9 billion, followed by Korea with US$ 9 billion.  The region with the third largest spending, the Americas, is forecast to spend about US$ 7 billion.  Yet growth will decline in the Americas, by 12 percent in 2015, and decline by 12 percent in 2016.  Fourth in spending is China, with US$ 4.7 billion in 2015 and US$ 4.2 billion in 2016. In other regions, Japan’s spending will grow by about 6 percent in 2015, to US$ 4 billion; and 2 percent in 2016, to US$ 4.2 billion.  The Europe/Mideast region will see growth of about 20 percent (US$ 2.7 billion) in 2015 and over 30 percent (US$ 3.5 billion) in 2016. South East Asia is expected to grow by about 15 percent (US$ 1.3 billion) in 2015 and 70 percent (US$ 2.2 billion) in 2016.

North America had the second largest regional fab capacity up until 2002 when Taiwan and South Korea took over second place behind Japan.  Due to the continued presence of device manufacturers, North America still represents a significant portion of the new equipment market though it has declined since 2011 when it had the largest market share for new equipment.  Since then spending has declined though a large installed fab base in North America still claims a significant portion of the wafer fab materials market.

Comparing global wafer fab market share, North America represent 18 percent of the Wafer Fab Materials market compared to a 15 percent share of global fab capacity. This is due to the advanced device manufacturing that occurs in the region which requires more advanced materials that realize higher average selling prices.

The semiconductor manufacturing market in North America is still innovating and whether it be for advanced manufacturing or chip design, North American companies have proven adept at evolving with the industry.

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