Analog semiconductors play a vital role behind the scenes in countless electronic systems that impact human lives everyday – from smartphones facilitating communications to EVs enabling sustainable transportation and medical devices saving patients. As a key interface bridging analog signals from the real world with digital environments, these chips will only grow more essential despite momentum behind digital transformations.
This article analyzes the 6 giants leading the $58 billion analog chip industry enabling this connectivity through innovations in precision, efficiency and intelligence.
Overview of the Analog Chip Industry
The analog integrated circuit market, comprised of revenues from over 15,000 companies worldwide, is projected to reach $89 billion by 2028 registering 5%+ CAGR over the period based on a 2022 industry report from Market Research Future.
Key growth factors include:
- Rising adoption in electric vehicles, industrial automation, 5G infrastructure
- Proliferation of IoT devices and demand for portable electronics in populous countries
- Technological advances improving precision, speed, intelligence and power
Analog chips process real world inputs like sound, temperature and speed by modulating electric signals on a continuous spectrum rather than discrete 0s and 1s. This analog data gets translated by analog-to-digital converters (ADCs) into a digital format for storage and manipulation by microprocessors. Growth in ADC performance allows adding more sensors across applications.
| End Market | Growth Drivers |
|---|---|
| Electric Vehicles | More sensing and battery management |
| 5G Networks | Low-latency signal modulation |
| Industrial | Precision instrumentation |
| IoT Devices | Connectivity and power efficiency |
Let‘s analyze the competitive environment and strategic directions of the industry leaders enabling this wave of analog innovation.
#1 Texas Instruments
| 2022 Analog Revenue | Market Share | Headquarters | Year Founded |
|---|---|---|---|
| $14.5 billion | 25% | Dallas, Texas | 1930 |
The inventor of the integrated circuit and world‘s first silicon transistor, Texas Instruments has an unparalleled history as an analog pioneer across industrial, automotive and personal electronics applications.
With nucleoside manufacturing facilities spanning Asia, Europe and the Americas, TI produces over 100,000 analog ICs in technology nodes down to 180nm supporting 30,000+ customers annually. TI‘s portfolio encompasses amplifiers, interfaces, power management, sensors and data converters across thousands of parts optimizing for precision, speed and power.
Strategic investments in production capacity and advanced packaging methods ensure stable supply amidst booming demand. For example in early 2023, TI broke ground on a new $30 billion semiconductor plant in Texas which will boost output of both analog and embedded processing solutions once operational in 2025.
"Our new facility in Texas will help usher in a new era of analog and embedded processing chips that run the modern world." stated TI CEO Rich Templeton at the announcement.
The company also continues acquiring emerging startups, with 10 purchases since 2020 building analog capabilities from microLED drivers to battery management systems targeting high growth markets like electric vehicles, 5G infrastructure and advanced robotics.
Industry analysts rank TI not only the top analog supplier today but best positioned looking forward given its scale, diversification and aggressive investments towards a more connected, electric, and autonomous future.
#2 Analog Devices
| 2022 Analog Revenue | Market Share | Headquarters | Year Founded |
|---|---|---|---|
| $6.3 billion | 11% | Norwood, Massachusetts | 1965 |
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