Mixed Signal ICs: The Nexus of Technology and Data Transmission

The Mixed-Signal IC Market is expected to grow at a compound annual growth rate of 3.24 % to reach a market size worth US$87,116.810 billion by 2026. This market was valued at US$69,670.713 billion in 2019. The mixed-signal IC combines analog/digital circuits on the same chip. It is commonly used to convert analog signals into digital signals, which can then be used by digital devices. Mixed-Signal ICs are important for a number of applications, which include consumer electronics, security and surveillance, automotive, healthcare, communications, and industrial equipment. A key advantage of these ICs is that they are able to convert data from digital into analog and from analog to digital simultaneously. 

mixed signal ic market

A number of consumer electronics, telecommunication, and other industries are experiencing exponential growth, which is driving the use of mixed-signal IC in mobile phones and electronic devices. A growing number of low-power consumption devices and the advent of the 5G network have led to the growth of the mixed-signal IC market

The Introduction of 5g Technology Will Spur the Market for Mixed-Signal ICS

Switching circuits for high-frequency technology are in great demand for 5G. Most of these switching circuits can be found in mixed-signal ICs. A growing number of wireless technologies are being adopted and these products are becoming more popular. Higher frequencies are associated with higher losses and distortion. As a result, mixed-signal ICs use special techniques that support this. In addition, mixed-signal integrated circuits are widely used in consumer electronics, where they can be found in mobile phones, led drivers, tablets, laptops, and a wide range of other electronic devices.  Capital expenditures for establishing 5G networks are expected to total more than $14 billion over the next five years among the four Japanese mobile operators. Fiber optics, base stations, and servers are all included in this. Over $720 million in telecom equipment was exported from the United States to Japan in 2019.

The Japanese government has a high priority when it comes to deploying 5G. Ministry of Internal Affairs and Communications (MIC) is the agency leading the 5G initiative.  The largest number of subscribers belongs to NTT DOCOMO, Japan's oldest mobile carrier. Japan's major cities will be the first to enjoy limited commercial 5G service starting on March 25, 2020. Over $7 billion will be invested in expanding the company's network by 2025 to cover 97% of the country's population. The company plans to build 8,001 base stations in the 3.7GHz and 4.5GHz spectrum bands, and 5,001 base stations in the 28GHz band. There are four major networks in the UK: EE, O2, Three, and Vodafone. A new 5G network was launched by EE in the UK for the first time in May 2019. EE currently offers 5G in 71 UK cities and towns. Taiwan released its 5G Action Plan in 2019 to stimulate 5G development on the island, which included funding of up to US$658 million over a four-year period. As a result of this public investment, U.S. ICT companies can work with the five largest mobile phone service providers in Taiwan: Chunghwa Telecom, Taiwan Mobile, Far EastTone, Asia Pacific Telecom, and Taiwan Star Telecom.

(Source: trade.gov)

The Consumer Electronic Segment Is Expected to Drive the Mixed-Signal IC Market in the Forecasted Period

Global revenues of the mixed-signal IC market are expected to be captured by the consumer electronics segment by the end of the forecast period.  Mixed-signal ICs functions are highly prevalent in mobile phones and electronic devices, as a result of the rapid development of telecommunications, electronics, and other industries. A combination of the 5G network and the high demand for low-power devices will propel the global market for mixed-signal ICs into growth.

In the Forecast Period, Mixed-Signal ICs Will Be Constrained by Their Complex Integration Processes

In the mixed-signal IC industry, multiple functions are incorporated in a single IC, which results in complex designs. The development of a complex device requires robust methodologies, skillsets, and an array of integration tools. Due to these technological innovations, more features are being added to systems, which increases their complexity. Furthermore, including multiple circuits into one IC, such as an analog and a digital circuit, is a challenging task. The combined effect of all these factors restrains the growth of the global mixed-signal IC market.

Market Growth Is Expected to Be the Highest in the Asia Pacific Mixed-Signal IC Market

The market share of APAC is predicted to be the largest in 2020. As new technologies are adopted across various sectors in the region, the region is undergoing rapid transformations. In APAC, specifically in Japan, South Korea, Australia, Singapore, China, and India, the infrastructure development, along with the deployment of 4G and 5G networks, presents huge potential for offering new 5G services. Several countries take the strategic lead in regions like Singapore, South Korea, China, Australia, and Japan, paving the way for 5G, edge computing, and blockchain technology to be a dominant force in the coming years. The 5G infrastructure market is dominated by Huawei (China). A global leader in information and technology solutions, the company provides services in over 150 countries worldwide. With more than 36 joint innovation centers and 14 research and development centers, the company operates in about 150 countries and receives customers from all over the world. Additionally, the company provides network infrastructure for telecom companies.  

COVID-19 Scenario:

Many countries have implemented lockdown measures that have disrupted manufacturing. During this time period, the supply chain was disrupted and businesses slowed. Access to the market has been limited by trade barriers.

Due to the stoppage of daily operations in the automotive industry, there was a significant reduction in demand. Manufacturing and sales of automobiles were suspended or reduced.

The semiconductor and electronics industries experienced business continuity issues, affecting demand for mixed-signal ICs. Nonetheless, demand continued to increase steadily after the lockdown ended.