If there is a serious recession or credit crunch in the global market, those companies that are not competitive will be closed down or merged into more competitive companies. Companies that continue to fight will also be motivated to reduce costs and innovate new products. The cost reduction can be achieved by reducing the scale, increasing the degree of automation, making more of its products in developing countries, and/or increasing outsourcing. This adjustment cycle is no different from the previous economic downturn.
How has the global electronics industry been affected?
In addition, this new cycle will create new major applications and new competitors. Products that did not exist in the past cycle found a foothold after this economic crisis because their producers had the ability to attract talents and use incentive funds to develop and produce these products. Let's take a look at the six main power management application markets to understand how the global market may affect the semiconductor industry after the economic crisis.
1) Telecom/Data Communication (servers, routers, base stations, etc.): Many large organizations were weak in the explosion of the SEC Wave during the 2000s and disappeared from this economic crisis. Companies such as Nortel, Motorola, and Lucent merged with more stable rival companies. The two new companies that were added were Google and Huawei. They gathered resources other than telecommunications/data communications to enter the market strongly. Google Corporation uses its hardware business as its leading position in maintaining its network services. Huawei has become a competitor to the global telecommunications industry with government support.
2) Portable Electronic Devices: This application market has almost completed its outsourcing and offshore business during this cycle. Taiwan and mainland China account for a significant market share. Fresh emerging Vietnamese and Indian markets are now being deployed and are expected to increase their market share after the next cycle.
3) White goods: Higher energy costs and technological improvements have accelerated the transition from low-tech, low-efficiency white goods to a new generation of energy-efficient products. The economic crisis has led to a significant slowdown in the development of the real estate market, which has had a large impact on the size of the white goods market. The rebound has only just begun, and in this cycle, Universal has continued to lead, and foresees a greater share of China's manufacturing share and more products using advanced energy-efficient electronics and machinery. This market will continue to develop in the coming cycles.
4) The generation of alternative energy sources: These emerging sources are increasingly urgently needed globally to reduce dependence on imported petrochemical products and generate less greenhouse gases. This market has barely started since 2000, but it has now reached a decisive level for the semiconductor industry. Incentive funds from the European Union, China, and the United States have provided a major boost to the popularity of emerging energy. The periodic ups and downs of this application area will obviously be much less than in other fields in the coming years.
5) Lighting: Energy-efficient lighting that replaces incandescent lamps will provide consumers with the fastest return. The lower cost of compact fluorescent lamps and emerging white LED bulbs will gradually increase their market share; at the same time, the amount of contained electrons will also steadily increase. Incentive funds will also further accelerate the production of efficient lighting and its popularity.
6) Transportation: Hybrid and pure electric vehicles are also the beneficiaries of incentive funds, and their demand for society will grow steadily in the next few years. GM and Ford have re-emerged as the global automotive giant may reduce the market share of several major Japanese manufacturers. In the long run, China and India will continue to develop their transportation industry at the fastest rate in the world despite major restructuring among major producers.
Global Market Analysis and Opportunities for New Material Devices From the various application markets, I explained the important technological developments of this year and the market driving forces behind them:
1) Telecom/data communications (servers, routers, base stations, etc.): Due to the high cost of operating group server sites and telecommunication equipment, and the increasing demand for computing power, storage capacity and bandwidth, telecommunications/data communications Has always been concerned about. For manufacturers, the cost of this telecom/data communication energy consumption (MIPS/Watt) has become one of the key design conditions. For short-term efficiency gains, improvements in power management will have the greatest potential. These improvements are reflected in two aspects: (1) new materials, such as enhanced gallium nitride (eGaNTM); and (2) new architecture supported by new materials. The eGaN FETs provide a good opportunity for efficiency because these products provide a qualitative leap in switching frequency, conduction losses, and physical dimensions.
2) Portable Electronic Devices: Laptops and mobile phones do not consume a large amount of global energy, but the size, weight, and cost of these systems are directly affected by their own energy consumption. Improvements in energy efficiency help achieve a “quality leap forward†in system value. For example, a consumer does not necessarily pay for a laptop with a 7-hour battery life more than a laptop with a 6-hour battery life but the same performance. But they will pay higher prices than laptops with a 2-hour battery life. The same applies to mobile phones. This need helps push more architectural changes, such as the use of flash memory instead of ordinary hard drives. Even so, energy efficiency plays an important role, and more efficient systems generally require higher prices. Similarly, eGaN FETs support much higher switching frequencies and can therefore reduce system size without compromising efficiency. The eGaN FET also reduces the number of DC/DC converter stages required to convert from battery voltage to processor voltage, further reducing cost and space requirements.
3) White goods: Consumers can get relatively quick returns by purchasing energy-efficient appliances such as refrigerators, air conditioners, and washing machines. This high energy efficiency results from a direct drive motor/motor control system. As the number of manufacturing increases, costs continue to decline. This cost-effectiveness, coupled with local incentives and legislation, has driven strong growth in the application market for these high-performance systems over the past few years.
4) Generation of alternative energy sources: In wind turbines and solar applications, the value of the system depends on how much energy is produced. The increase in energy efficiency translates directly into higher system prices. There are indeed encouraging achievements in these applications. Wind turbines have been introduced for several years, and their installed capacity (up to 2.5 megawatts per tower) has been increased and their costs reduced for more domestic applications. Blade server designs are also changing, and wind farms are beginning to be designed to work like coordinated (or even resonant) systems. There are also many opportunities in the areas of control systems engineering and motion control/power generation. Moreover, solar power generation is undergoing tremendous changes. Megawatt-class large-scale centralized solar electric fields are constantly emerging. These applications are extremely sensitive to each 0.1% conversion efficiency. In addition, traditional rooftop solar panels are affected by cost and efficiency and have been produced in large quantities. The current architecture has begun to shift from centralized inverters to micro-inverters. These new micro-inverters can significantly reduce installation costs without reducing efficiency and even increasing their efficiency.
5) Lighting: The conversion from incandescent lamps to fluorescent lamps is still slow. The main reasons for the speed of conversion are the purchase price of energy-efficient compact fluorescent bulbs and their inability to use standard wall dimmers. Over time, costs and functionality have been further improved. In some countries, government legislation also promotes this change. The business opportunity is to find out how to reduce costs and increase functionality. When low-cost fluorescent bulbs can be efficiently dimmed under the control of a standard TRIAC wall dimmer, their popularity in the home market is expected to increase. LEDs will also enter this market, but face the same cost and compatibility issues. Fluorescent and LED bulbs are much more efficient than incandescent bulbs, so cost and functionality are the focus.
6) Transportation: We have only just begun to see the emergence of electric vehicles, and the short-term goal is to target the cost of “threshold performance†(eg, cars with 100-mile driving miles are priced below $40,000). At present, this will promote energy storage technology rather than electronic technology. In the long run, motion control electronics will significantly increase the competitiveness of automotive performance. The motor-driven design will have a major impact on fuel economy, cost, and drivability. The eGaN technology will play an important role here. If very high drive voltages (600V-900V) are used to save fuel and costs, the value of eGaN FETs is to achieve high voltages while maintaining low on-resistance, making them the best choice for motor driver power circuits. This transportation application market will eventually become the largest single market for motion control electronics and the semiconductors that drive them.
Application Trends of Power ICs/Devices Let's take a look at the development trends of power ICs/devices in six key power management applications:
1) Telecom/Data Communication (servers, routers, base stations, etc.): The increasing popularity of power supplies based on enhanced GaN (eGaN) FETs will be a trend for future development. These next-generation power converters will be smaller and more efficient. By the middle of this decade, the cost of eGaN FETs is predicted to be lower than comparable silicon power MOSFETs. At that time, all designs will use eGaN FETs. eGaN technology also supports the integration of more power devices on a single chip, which means that the product is more miniaturized and has higher efficiency, higher reliability and better cost-effectiveness.
2) Portable electronic devices: Using eGaN technology instead of power MOSFETs and stand-alone peripheral ICs can achieve higher frequencies and higher levels of integration, further improving the size and weight of portable electronic devices. Increased conversion efficiency also extends battery life.
3) White goods: The largest market for power ICs in white goods is motion control. eGaN technology enables the complete integration of motion control electronics onto a single semiconductor, effectively reducing costs, improving reliability and system efficiency.
4) The generation of alternative energy sources: Increased integration of power functions, such as that supported by eGaN technology, will mean that the market will see more cost-effective distributed generation and conversion, and it will also enable higher costs to be realized. The benefits of solar micro-inverters and smaller wind turbines.
5) Lighting: eGaN technology can achieve greater integration of the entire lighting control function, thereby reducing system costs. The cost of producing energy-efficient lighting products is a major obstacle to its popularity.
6) Transportation: Motor-driven design has a great influence on the fuel economy, cost, and drivability of hybrid and pure electric vehicles. Fuel economy and cost can be improved by using a very high driving voltage (600V-900V). eGaN FETs can support very high voltages while maintaining low on-resistance, making them ideal for motor-driven power circuits.
In all power management applications, EPC is committed to innovating eGaN technology to replace the respected but limited performance of silicon-based technologies. To accomplish this mission, we must demonstrate that eGaN technology can achieve lower cost, higher performance, and more reliable performance than the corresponding silicon technology. Our production base is located in Asia and focuses on developing the Chinese market. In China, we have a professional sales, product promotion and technical team dedicated to supporting the sustainable development of various application markets.
A vigorous economic system is in its infancy, its development will continue to be strong, and it will also drive the strong growth of the semiconductor market. The market of internal consumption and government-supported application market are the two main growth trends. 2011 is the beginning of China’s 12th Five-Year Plan. Many new projects such as the construction of 9.1 million social housing projects will trigger and expand the potential of the domestic semiconductor market; EPC's lower costs and more High-performance performance eGaN technology will have great potential to contribute to the solar energy, energy-efficient lighting, and consumer electronics market.
How has the global electronics industry been affected?
In addition, this new cycle will create new major applications and new competitors. Products that did not exist in the past cycle found a foothold after this economic crisis because their producers had the ability to attract talents and use incentive funds to develop and produce these products. Let's take a look at the six main power management application markets to understand how the global market may affect the semiconductor industry after the economic crisis.
1) Telecom/Data Communication (servers, routers, base stations, etc.): Many large organizations were weak in the explosion of the SEC Wave during the 2000s and disappeared from this economic crisis. Companies such as Nortel, Motorola, and Lucent merged with more stable rival companies. The two new companies that were added were Google and Huawei. They gathered resources other than telecommunications/data communications to enter the market strongly. Google Corporation uses its hardware business as its leading position in maintaining its network services. Huawei has become a competitor to the global telecommunications industry with government support.
2) Portable Electronic Devices: This application market has almost completed its outsourcing and offshore business during this cycle. Taiwan and mainland China account for a significant market share. Fresh emerging Vietnamese and Indian markets are now being deployed and are expected to increase their market share after the next cycle.
3) White goods: Higher energy costs and technological improvements have accelerated the transition from low-tech, low-efficiency white goods to a new generation of energy-efficient products. The economic crisis has led to a significant slowdown in the development of the real estate market, which has had a large impact on the size of the white goods market. The rebound has only just begun, and in this cycle, Universal has continued to lead, and foresees a greater share of China's manufacturing share and more products using advanced energy-efficient electronics and machinery. This market will continue to develop in the coming cycles.
4) The generation of alternative energy sources: These emerging sources are increasingly urgently needed globally to reduce dependence on imported petrochemical products and generate less greenhouse gases. This market has barely started since 2000, but it has now reached a decisive level for the semiconductor industry. Incentive funds from the European Union, China, and the United States have provided a major boost to the popularity of emerging energy. The periodic ups and downs of this application area will obviously be much less than in other fields in the coming years.
5) Lighting: Energy-efficient lighting that replaces incandescent lamps will provide consumers with the fastest return. The lower cost of compact fluorescent lamps and emerging white LED bulbs will gradually increase their market share; at the same time, the amount of contained electrons will also steadily increase. Incentive funds will also further accelerate the production of efficient lighting and its popularity.
6) Transportation: Hybrid and pure electric vehicles are also the beneficiaries of incentive funds, and their demand for society will grow steadily in the next few years. GM and Ford have re-emerged as the global automotive giant may reduce the market share of several major Japanese manufacturers. In the long run, China and India will continue to develop their transportation industry at the fastest rate in the world despite major restructuring among major producers.
Global Market Analysis and Opportunities for New Material Devices From the various application markets, I explained the important technological developments of this year and the market driving forces behind them:
1) Telecom/data communications (servers, routers, base stations, etc.): Due to the high cost of operating group server sites and telecommunication equipment, and the increasing demand for computing power, storage capacity and bandwidth, telecommunications/data communications Has always been concerned about. For manufacturers, the cost of this telecom/data communication energy consumption (MIPS/Watt) has become one of the key design conditions. For short-term efficiency gains, improvements in power management will have the greatest potential. These improvements are reflected in two aspects: (1) new materials, such as enhanced gallium nitride (eGaNTM); and (2) new architecture supported by new materials. The eGaN FETs provide a good opportunity for efficiency because these products provide a qualitative leap in switching frequency, conduction losses, and physical dimensions.
2) Portable Electronic Devices: Laptops and mobile phones do not consume a large amount of global energy, but the size, weight, and cost of these systems are directly affected by their own energy consumption. Improvements in energy efficiency help achieve a “quality leap forward†in system value. For example, a consumer does not necessarily pay for a laptop with a 7-hour battery life more than a laptop with a 6-hour battery life but the same performance. But they will pay higher prices than laptops with a 2-hour battery life. The same applies to mobile phones. This need helps push more architectural changes, such as the use of flash memory instead of ordinary hard drives. Even so, energy efficiency plays an important role, and more efficient systems generally require higher prices. Similarly, eGaN FETs support much higher switching frequencies and can therefore reduce system size without compromising efficiency. The eGaN FET also reduces the number of DC/DC converter stages required to convert from battery voltage to processor voltage, further reducing cost and space requirements.
3) White goods: Consumers can get relatively quick returns by purchasing energy-efficient appliances such as refrigerators, air conditioners, and washing machines. This high energy efficiency results from a direct drive motor/motor control system. As the number of manufacturing increases, costs continue to decline. This cost-effectiveness, coupled with local incentives and legislation, has driven strong growth in the application market for these high-performance systems over the past few years.
4) Generation of alternative energy sources: In wind turbines and solar applications, the value of the system depends on how much energy is produced. The increase in energy efficiency translates directly into higher system prices. There are indeed encouraging achievements in these applications. Wind turbines have been introduced for several years, and their installed capacity (up to 2.5 megawatts per tower) has been increased and their costs reduced for more domestic applications. Blade server designs are also changing, and wind farms are beginning to be designed to work like coordinated (or even resonant) systems. There are also many opportunities in the areas of control systems engineering and motion control/power generation. Moreover, solar power generation is undergoing tremendous changes. Megawatt-class large-scale centralized solar electric fields are constantly emerging. These applications are extremely sensitive to each 0.1% conversion efficiency. In addition, traditional rooftop solar panels are affected by cost and efficiency and have been produced in large quantities. The current architecture has begun to shift from centralized inverters to micro-inverters. These new micro-inverters can significantly reduce installation costs without reducing efficiency and even increasing their efficiency.
5) Lighting: The conversion from incandescent lamps to fluorescent lamps is still slow. The main reasons for the speed of conversion are the purchase price of energy-efficient compact fluorescent bulbs and their inability to use standard wall dimmers. Over time, costs and functionality have been further improved. In some countries, government legislation also promotes this change. The business opportunity is to find out how to reduce costs and increase functionality. When low-cost fluorescent bulbs can be efficiently dimmed under the control of a standard TRIAC wall dimmer, their popularity in the home market is expected to increase. LEDs will also enter this market, but face the same cost and compatibility issues. Fluorescent and LED bulbs are much more efficient than incandescent bulbs, so cost and functionality are the focus.
6) Transportation: We have only just begun to see the emergence of electric vehicles, and the short-term goal is to target the cost of “threshold performance†(eg, cars with 100-mile driving miles are priced below $40,000). At present, this will promote energy storage technology rather than electronic technology. In the long run, motion control electronics will significantly increase the competitiveness of automotive performance. The motor-driven design will have a major impact on fuel economy, cost, and drivability. The eGaN technology will play an important role here. If very high drive voltages (600V-900V) are used to save fuel and costs, the value of eGaN FETs is to achieve high voltages while maintaining low on-resistance, making them the best choice for motor driver power circuits. This transportation application market will eventually become the largest single market for motion control electronics and the semiconductors that drive them.
Application Trends of Power ICs/Devices Let's take a look at the development trends of power ICs/devices in six key power management applications:
1) Telecom/Data Communication (servers, routers, base stations, etc.): The increasing popularity of power supplies based on enhanced GaN (eGaN) FETs will be a trend for future development. These next-generation power converters will be smaller and more efficient. By the middle of this decade, the cost of eGaN FETs is predicted to be lower than comparable silicon power MOSFETs. At that time, all designs will use eGaN FETs. eGaN technology also supports the integration of more power devices on a single chip, which means that the product is more miniaturized and has higher efficiency, higher reliability and better cost-effectiveness.
2) Portable electronic devices: Using eGaN technology instead of power MOSFETs and stand-alone peripheral ICs can achieve higher frequencies and higher levels of integration, further improving the size and weight of portable electronic devices. Increased conversion efficiency also extends battery life.
3) White goods: The largest market for power ICs in white goods is motion control. eGaN technology enables the complete integration of motion control electronics onto a single semiconductor, effectively reducing costs, improving reliability and system efficiency.
4) The generation of alternative energy sources: Increased integration of power functions, such as that supported by eGaN technology, will mean that the market will see more cost-effective distributed generation and conversion, and it will also enable higher costs to be realized. The benefits of solar micro-inverters and smaller wind turbines.
5) Lighting: eGaN technology can achieve greater integration of the entire lighting control function, thereby reducing system costs. The cost of producing energy-efficient lighting products is a major obstacle to its popularity.
6) Transportation: Motor-driven design has a great influence on the fuel economy, cost, and drivability of hybrid and pure electric vehicles. Fuel economy and cost can be improved by using a very high driving voltage (600V-900V). eGaN FETs can support very high voltages while maintaining low on-resistance, making them ideal for motor-driven power circuits.
In all power management applications, EPC is committed to innovating eGaN technology to replace the respected but limited performance of silicon-based technologies. To accomplish this mission, we must demonstrate that eGaN technology can achieve lower cost, higher performance, and more reliable performance than the corresponding silicon technology. Our production base is located in Asia and focuses on developing the Chinese market. In China, we have a professional sales, product promotion and technical team dedicated to supporting the sustainable development of various application markets.
A vigorous economic system is in its infancy, its development will continue to be strong, and it will also drive the strong growth of the semiconductor market. The market of internal consumption and government-supported application market are the two main growth trends. 2011 is the beginning of China’s 12th Five-Year Plan. Many new projects such as the construction of 9.1 million social housing projects will trigger and expand the potential of the domestic semiconductor market; EPC's lower costs and more High-performance performance eGaN technology will have great potential to contribute to the solar energy, energy-efficient lighting, and consumer electronics market.