Market Trends of Americas Integrated Circuit (IC) Industry
Memory Segment to Occupy a Significant Share After Logic
Currently, DRAM is finding widespread use in digital electronics where low-cost and high-capacity memory is required. One of the largest applications for DRAM is the main memory in modern computers and graphics cards. It is also commonly used in many portable devices and video game consoles.
Investments in the wireless industry in the United States are rising continuously, with nearly USD 35 billion invested in 2021, according to CTIA's 2022 Annual Wireless Industry Survey. The record-high investment marked the fourth straight year of increased capital expenditure. This is driving the uptake of 5G in the region, which remains high. As per CTIA, 5G networks now cover over 315 million Americans, one-in-three American adults have a 5G device, and 5G is now the fastest-growing segment of the home broadband market.
With the implementation of 5G, mobile devices will require more and faster DRAM, such as LPDDR5, to handle 5G-enabled multimedia applications and tasks. Also, the increased download speed and volumes associated with 5G will drive the need for faster and larger storage.
A NAND flash chip retains data even when a device is turned off, unlike a DRAM chip which loses data when the power is off. NAND flash memories are becoming more popular due to their usage as solid-state drives (SSDs) and USB flash drives, called flash storage devices. Also, due to work-from-home trends, NAND flash consumption dramatically increased with the demand for PCs and smartphones.
Moreover, in July 2022, Micron Technology announced that it had started shipping its most advanced NAND flash chip, which comprises 232 layers of memory cells that can support intense data use from consumer gadgets, cars, and data centers.
Industrial Application to Grow at a Significant Rate
Industry 4.0 is transforming the way companies manufacture their products. Industry 4.0 refers to the smart and connected production systems designed to sense, predict, or interact with the physical world to make decisions that support production in real-time. In manufacturing, it has the potential to increase productivity, energy efficiency, and sustainability.
An important enabler of Industry 4.0 is industrial robots. According to IFR, In the first quarter of 2022, companies in the United States, Canada, and Mexico ordered 11,595 industrial robots, up 28% compared with the first quarter of 2021.
Integrated circuits are used extensively in robots and their controllers. For instance, memory components form the core elements of every industrial robot. Memory chips play an essential role in the controller and sensor functionalities, as well as data logging, embedded in the robotic solutions for different industries.
Moreover, analog and mixed-signal ICs can play important roles in industrial automation and process control applications. In response to the growing needs of industrial system developers, in recent times, analog ICs vendors have continued to roll out new chips designed to meet a range of industrial design needs, including factory robotics, sensors for machine condition monitoring, and advanced motor systems.
For instance, in November 2022, NXP landed industrial equipment giant Schneider Electric as a customer for its new play and analog front-end (AFE) ICs for high-precision data acquisition and condition-monitoring systems in factories.
