Power Management Chips

Power management chips are the key components in any device with a power supply, battery or power cord, which exist primarily to optimize power usage. In short, they serve as a bridge for electricity to flow through a system or device. 

In particular, power management integrated circuits refer to circuits that range from applications such as managing the power used within a larger electronic system such as a cell phone, TV or computer to applications enabling new power saving technologies including smart meters and grids or more efficient lighting solutions. 

Pain Point 

Owing to increased consumption of electricity, more and more concerns arise regarding the efficient usage of energy such as in data centers, power strips and appliances like air conditioning etc. 

How is it solved

These energy efficiency concerns are being solved by the power management chips by vast means. For e.g., power management chips facilitates efficient multiple charging sources, multiple supply voltages within a product.

End Users 

All electronic appliance users are capable of using power management chips embedded in their laptops, mobiles,  Televisions and other day-to-day appliances.

Market size and growth 

The market for power management semiconductors is pegged at $31 billion in 2010 and then more than double by 2014, reaching $45 billion, posting a 15% (CAGR). 

Among the various types of power management semiconductors, the fastest growth takes place among power MOSFETs (Metal–Oxide–Semiconductor Field-Effect Transistor). The power MOSFET revenue is increasing at a CAGR of 20.8% from 2009. Within the power MOSFET group, the best performer is found to be the low-voltage discrete. The segment grows at a CAGR of 25.6% from 2009 with forecast revenues by 2014 of US $4.9 billion. Several markets that contribute to the growth include wired communications, consumer, automotive and industrial. 

Power management chips made out of Gallium nitride (GaN) is emerging that represents an attractive market opportunity for suppliers to provide customers with capabilities that may be out of the reach of present semiconductor process materials. The market for gallium nitride power management semiconductors is forecast to reach $183.6 million in revenue in 2013. The sales revenue of Power Management ICs grows at a CAGR of 6.27% from 2009. 

The advent of Tablet PCs boosts the demand for Power Management ICs. New electronic products such as the iPad and LED backlight TVs are seeing increasing adoption among consumers. This increases the consumption of Power Management ICs. 

The American Council for an Energy-Efficient Economy estimated that semiconductor-enabled technologies generated a net savings of about 75 billion kilowatt-hours of electricity in 2006 alone.  

The consumption for Power Management ICs in Asia shows a marked growth from 2010. Asian countries have become both the world’s largest consumer and supplier of electronic goods due to their huge population and the rising per capita income, plus the favorable government policies. For instance, China holds the largest supply and consumption of Power Management ICs with sales revenue of $2,387m in 2009. 

Market segment 

Power management chips can be widely used in all industrial segments – automobiles, consumer electronics (digital televisions) and mobile communications (mobile phones). But alternative energy and consumer electronics manufacturers are driving much of the demand, although any device with a power supply can use a power-management chip.  

How far is the industry from commercialization? 

Power management Integrated Circuit (PMIC) is one of the fastest-growing semiconductor market segments and has been in the market for over a decade. The major companies include Intersil Corporation (California), Texas Instruments, Linear Technology, National Semiconductor, ON Semiconductor, Fairchild Semiconductor, ST Microelectronics and IBM. 

Manufacture of isolated AC/DC and DC/DC power supply controllers, and non-isolated voltage regulators, such as switching DC/DC converters and linear regulators, to PMIC and LED drivers for plug-in power modules, digital power, battery management and high-performance MOSFETs etc., can be done. 

To capitalize on market opportunities in the new growth cycle, chipmakers need to make fundamental, structural improvements by means of improving research and development, innovative supply chains, transformation of sales force etc., This tends to attract more investments and revenues in the sector. 

Competition Scenario

Obama’s $4 billion stimulus package for smart-grid technologies attracted large chip makers in US such as Intel and Texas Instruments who positioned themselves for moves into the energy industry. In addition, a number of Investment Announcements by the Chinese Government reinforces China’s Dominance in Semiconductor Manufacturing. 

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