What is analog IC and how will its future market development be?
"Analog IC is an integrated circuit analog IC that processes analog signals. It is a sub-category of integrated circuits. According to the form of processed signals, integrated circuits can be divided into analog ICs and digital ICs. Analog ICs account for about 15% of the IC market. In 2017, the market size was about 53.1 billion US dollars. Although analog ICs and digital ICs belong to integrated circuits, there are big differences in processing signal types and industry characteristics. According to different processing signals, integrated circuits can be divided into analog ICs and digital ICs. An integrated circuit that processes signals as analog signals can be defined as analog ICs."
Analog IC: An integrated circuit that processes natural analog signals such as sound, light, electricity, electromagnetic waves, speed, and temperature in a continuous sense. According to the functions, the product types are mainly divided into two types: signal link chip and power management chip. On behalf of the company, there are Texas Instruments and ADI. Digital IC: An integrated circuit that processes digital signals of discrete electrical "1" and "0" signals is a digital IC in the usual sense. The product types are mainly divided into memory, logic IC and micro components according to their functions, representing the company as intel, Qualcomm, Micron and so on.
The analog IC consists of two modules of power management and signal link. The “0 and 1” characteristics of the digital signal give the digital circuit a powerful logic estimation capability and convenient storage capability. The analog signal potential is relatively polymorphic, and it is difficult to store and add or subtract. Unlike logic computing, and thus different from digital IC storage and the ability to provide computing power, the two main uses of analog ICs are:
1. Power management: The normal operating voltage required for chips, components, and circuit systems is different. The analog IC can be used to raise and lower the fixed voltage provided by the battery and power supply. Systems that require power supply basically require a power management chip, so the market space is large. At the same time, because the technical indicators are basically stable, the technology update iteration is slower, so the barriers are relatively low, and the domestic companies have more layouts.
2. Signal link: A bridge connecting the real world and the digital world. It converts electromagnetic waves, sounds, temperature and optical signals received by natural signals such as antennas or sensors into multi-bit digital signals for subsequent digital signal processor processing. Among them, the RF front-end chip needs to keep up with the advancement of communication technology, and the technology update has a higher iteration speed and higher barriers.
The power management chip in the analog IC is the main proportion. Since almost all electronic systems require power, power management chips account for a high proportion of analog ICs. In 2017, they accounted for about 53% (powerICs for standard power ICs and analog ASSPs), with a market size of approximately $28.14 billion. Although digital ICs and analog ICs belong to the same category of integrated circuits, the basic working principles of the two are quite different. The differences in basic operating principles determine the different product characteristics, design ideas, process choices, and market distribution of digital ICs and analog ICs.
The analog integrated circuit industry has the following four characteristics: demand side: downstream demand is dispersed, and product life cycle is long. Supply end: biased towards mature and special processes, the eight-inch production line is the main supply. Competing end: The competitive landscape is scattered and the competitive pressure between manufacturers is small. Technical side: The technical barriers in the industry are high, and the experience is people-oriented. Analog IC products have a long life cycle and can achieve stable chip shipments once they are cut into products.
Demand level: The downstream products of analog products are required to be reliable and safe. The qualifications for mature and stable products are relatively strict, generally not less than one and a half years. Supply level: Advanced processes have little effect on analog products and are basically not driven by Moore's Law. Therefore, the performance update of analog products is slower. Therefore, the life cycle of analog products is long, generally not less than 10 years. The well-known audio amplifier chip NE5532 has a life cycle of 30 years and is still the standard chip for many audio equipment.
Downstream demand: demand for automobiles and communications is rising, and the industry is entering the fast lane. According to ICinsights forecast, the communication analog chips and automotive electronics in the downstream applications of analog circuits will show the fastest compound annual growth rate, 7.4% respectively. And 7.0%. The overall market size of analog circuits will show a compound annual growth rate of 6.6% from 2017 to 2022, which is higher than the compound annual growth rate of 5.1% of integrated circuits. We believe that the downstream demand of the analog circuit industry is fragmented and affected by a single downstream. Therefore, under the background of the maturity of smart phones, the market scale can still rise against the trend.
The upstream supply can be abundant in the short-term upstream, and the analog IC is no longer worrying. The eight-inch wafer is the main supply. The trend of the transfer trend is still small. From the perspective of upstream supply, the upstream raw materials of the integrated circuit are mainly wafer materials, and the wafer has 6 inches. , 8 inch, 12 inch points. Due to the mature process of analog ICs and low process cost, the current wafer supply mainly uses 8-inch wafers. According to SEMI data, if the production capacity of the foundry is about 11% of the total production capacity, the OEM capacity will be processed. In translation, analog products account for about 22% of production capacity.
Assuming that the simulation production capacity is completely released, the production capacity of 1355kwpm can be achieved. If the simulation product in the year 2017-2022 is compounded by 6.6%, the production capacity will be sufficient until the end of 2019. Huge demand and low self-sufficiency rate, the current situation of mixed semiconductor trade deficit continues to widen, domestic IC demand is strong. The integrated circuit industry is a strategic and basic industry for national economic and social development, and an important driving force for China's information technology development and industrial transformation.
According to ICinsights statistics, the demand for IC industry in China reached US$35.1 billion in 2017, accounting for 44.8% of the global market. From 2013, the value of integrated circuits imported from China exceeded US$200 billion for the first time and reached a new high in 2017. 2601 billion US dollars, the trade deficit of 193.2 billion US dollars. The low self-sufficiency rate still exists, and the simulated IC replacement space for 2020 is expected to be $27.3 billion.