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Report: Major Home Appliance Semiconductor Market Poised for Strong 2010
Aug 23, 2009
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The global market for semiconductor used in major home appliances (MHAs) is forecast to recover strongly in 2010 and grow steadily over the next five years, according to IMS Research.

The major home appliance market has suffered over the past year. In 2009, IMS Research predicts that global MHA shipments will be nearly 10% down from 2008. It gets worse for the semiconductor market - the rapid inventory de-stocking will result in a revenue decline of 15-20% this year. Despite the market slowdown, the average semiconductor dollar content per appliance is forecast to increase slightly, said the report.

Looking forward over the next five years, the prospects appear much better than the current situation. Research analyst Jason dePreaux commented, "The semiconductor market in MHA applications will benefit from two major factors: first, a recovery of appliances shipments is projected following this year's steep contraction. Simply speaking, more appliances mean more semiconductors to put in them. Second, the average semiconductor content per appliance will rise as increasingly sophisticated electronics get adopted within them."

IMS Research also found that the increased use of inverter-based variable speed control for motors, compressors, and pumps are contributing to the rising semiconductor bill of materials. This is partly being driven by a renewed global emphasis on energy efficiency and stricter appliance standards within the home. Another major factor contributing to more semiconductor use is the trend toward electronic controls and displays. Driving graphical UIs with complex menus and multiple languages requires the use of more advanced microcontrollers. IMA said this is contributing to 16 and 32-bit solutions taking share from 8-bit and 4-bit products. Displays and touch controls are being embraced by appliance makers as a way to differentiate their products from competitors and have become more enticing as component costs have come down and they become more familiar designing such systems in-house, said the report.

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