Breakthrough chip materials and processes. Record mergers and acquisitions. 2015 was a busy year
27-01-2016 | By David Somo
Looking back at 2015 you have to say that from an electronics perspective that was not as boring year. The semiconductor business went through some dramatic changes. Smaller process nodes are coming to the fore, next generation semiconductor materials such as GaN are moving from the lab into large scale production and a huge array of new application opportunities are emerging.
As a backdrop to all this, merger and acquisition (M&A) levels have been at an all-time high reaching a total value well in excess of $100 billion this year. As a consequence, we are now witnessing significant alterations to the semiconductor vendor landscape and the way these companies serve their associated markets.
The critical mass needed to adequately invest in research and development, and the low interest rates currently available have been among the many different dynamics fueling this M&A activity. However, the overriding reason behind this ongoing consolidation is much simpler than that - customers are increasingly relying upon semiconductor vendors to deliver more comprehensive solutions-focused offerings, not just supply ICs in isolation.
When it comes to burgeoning applications the Internet of Things (IoT) has preoccupied many in the electronics industry for much of the last 18 months, but it is likely that during 2016 significant implementation will start to occur. In the future, billions of devices across the globe will be connected together via IoT. This will call for the sourcing of wired and wireless connectivity chips, microcontrollers, power ICs and all manner of sensors.
Climate Change
The recent United Nations Climate Change Conference in Paris concluded with an agreement to reduce greenhouse gas emissions. This will place automobile manufacturers under greater pressure to accelerate the electrification of vehicles. HEV sales are expected to see a CAGR of at least 10% between now and the end of the decade.
In addition, there is an array of different functionality that is being integrated into more conventional car models. Innovation is taking place elsewhere in car designs, with advanced driver assist system (ADAS) technology set for widespread proliferation. Specification of higher performance sensors and faster connectivity will ensure that vehicle occupants are kept from harm and road fatalities are reduced.
For IoT, automotive electrification, ADAS implementation and countless other applications, ON Semiconductor is positioned to provide the energy efficient innovations that will be required. I look forward to seeing what 2016 holds.
