Where the smart money goes in semiconductors

PHOENIX, USA: When you think of profitable semiconductor categories, what comes to your mind? In a good year, NAND and DRAM can be very profitable. Considering Intel's size and position in the market, Micro Logic would be another good guess. But the smart money goes to the Analog market for long-term, stable profitability.

The analog segment is the subject of a new study just released by Semico Research Corp., Analog Market Trends: Fourth Quarter 2011. In the study, Semico shows that the Analog segment maintains a higher than average revenue per wafer, utilizes process technology longer than digital logic ICs, and has experienced a higher than average compound annual growth rate (CAGR) over the past 10 years.

"Over the next five years, semiconductor units will grow at a CAGR of 9.6 percent. The analog market will grow at a CAGR of 10.1 percent," says Semico president Jim Feldhan. "Specific analog product categories such as power management devices will grow even faster, logging in a 13.2 percent CAGR over the next five years."