|Infineon’s recent decision to acquire Primarion looks to be well-timed, and could make the supplier one of the largest vendors of digital power management ICs. |
Infineon’s decision to enter the digital power management IC market comes at a time when the relatively undeveloped market is set to expand rapidly over the coming next five years to generate a total of $1.5 billion to the end of 2011, according to latest forecasts from IMS Research.
Research Director Ash Sharma commented “Although the digital power management IC market is still relatively small, we expect it to grow on average at more than 40% per year. We’ve seen more suppliers enter the market recently, and of course, prices of digital power ICs will inevitably fall to a comparable price with analog ICs”. Sharma added, “Infineon’s decision to attempt to grab a large chunk of this market while it is still in its infancy is a bold move; but it will reinforce its strong overall position in the voltage regulation market.”
Although Infineon was still ranked behind the leaders Texas Instruments and National Semiconductor in the global voltage regulation market at the end of 2006, its acquisition of the second largest supplier of digital power management ICs will make it a major player in this important segment. Demand for digital power management ICs is expected to increase particularly strongly in applications employing multiple voltage rails and high currents, such as servers and routing equipment
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