Industry Watch

The information found in Industry Watch is collected from many sources. It is gathered and updated on a regular basis by America II's Product Marketing Team. The data is intended to provide a high-level overview of lead times and market conditions. Buyers should use this information for guidance only.

Taiwan Earthquake Effecting Production

Preliminary reports on the impact of the 6.4 magnitude earthquake that struck southern Taiwan on February 6 gave indications of minor production delays in the semiconductor industry. Taiwan Semiconductor Manufacturing Co (TSMC) initially reported no structural or facility damage to their Fab 6 and Fab 14 sites, with no shift in equipment position. At the time, they estimated that 95+ percent of the tools would be fully restored to normal within a week. However, Intel’s Programmable Solutions Group (PSG – formerly Altera), a fab partner of TSMC, now reports that the damage was much greater than originally thought.

Fab 14 was most impacted, where Intel PSG runs 40, 60, and 65 nm wafer products. The production recovery ramp has been slower than expected, which is causing a significant increase in production lead times for the following families:

  • Stratix IV GX/GT: EP4SGX230, EP4SGX360, EP4SGX530, EP4SE530
  • Cyclone IV GX: EP4CGX30, EP4CGX50, EP4CGX75, EP4CGX110, EP4CGX150
  • Cyclone III: EP3C10, EP3C16, EP3C25, EP3C40, EP3C3C55, EP3C80, EP3C3C120
  • Cyclone II: EP2C2C8, EP2C2C35, EP2C50
  • Arria II: EP2AGX125, EP2AGX190, EP2AGX260
They expect supply on these products to be constrained through Q2 2016 and hope to be caught up to pre-earthquake supply commits by late June/early July. Though specific details are not yet known, there are also indications that products from Broadcom Limited and Marvell may have also been affected.

Semiconductor Unit Shipments Expected to Grow by 7.2%

IC Insights is projecting 7.2 percent annual growth in semiconductor unit shipments through year 2020, with total shipments expected to top one trillion units for the first time in 2018. This also amounts to an average annual growth of 9 percent for the 40 year period starting in 1978, when total unit shipments was 32.6 billion. It also demonstrates how increasingly dependent our world has become on semiconductors.

In 2015, opto-sensor-discrete (O-S-D) devices accounted for 72 percent of total unit shipments compared to 28 percent for integrated circuits. 32-bit microcontrollers are expected the strongest unit growth for 2016 at 29 percent, followed by application-specific analog and magnetic-field sensors at 15 percent.