Analog IC market - a sellers market for 2010
The tight supply of analog ICs seems set to continue. The current demand is growing faster than the capacity ramp ups and quite a few analog vendors are turning away business.
Analog chip makers are struggling with part shortages and extended lead times. Further investments for capacity ramp-up, optimizing fab outputs etc. are taking place in an uncertain backdrop of a “relatively accurate picture of actual demand”. TI is expanding its 300mm analog fab – though, after off-loading its wireless products, it has to expand capacity for analog significantly in order to maintain growth momentum. Maxim is taking several actions – optimizing existing production lines and increasing loading to foundry partner, Epson. The analog IC market in particular looks to be a seller’s market for the entire 2010!