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global consumer electronics industrywith the EU close behind. However,this growth pattern is expected to shiftas demand from developing nationsrises and the Asia Pacific regionemerges as a major influencer.The Indian consumer electronicsindustry is expected to grow at aCompound Annual Growth Rate(CAGR) of about 19% in 2010-2013.Among all products the highestgrowth in 2010 was booked by smartphones, which registered a 51%year-on-year growth. In the nearfuture, smart phones are expected tocontinue dominating the growth curvefollowed by mobile and personalcomputers (PC). At the same time,video game sales dropped in 2010for the second consecutive year dueto the relative demand saturation.Moving forward, digital technologiesrelated to connectivity and mobilitywill be crucial in further acceleratingthe consumer electronics industry’sgrowth.Growth in terms of products comesprimarily from smart phones,netbooks, laptops, ethernet-connectedTVs, high-definition camcorders, LEDTV players, eBook readers and Blu-rayplayers. In the near future, consumerswill continue to move beyond highdefinition video on TVs to webconnected TVs.In the recent past, there was a gap inthe market for devices with screensranging between 5 inches and 15inches. With an eye to bridge the gap,manufacturers launched a numberof smart books, eBook readers andnetbooks. However, netbooks aremore “consumerized” now withvendors finally able to break intomass markets.Tablet PCs will drive the globalconsumer electronics marketDespite the fact that tablet PCs are notnew and have existed for quite sometime the market was transformedwith Apple’s launch of the iPad inmid 2010. This market is at a nascentstage with many players launchingproducts. These devices are typicallyof similar hardware specifications,following the latest trend for netbooksand other small devices.Players like Apple have experiencedtremendous success in the consumermarket and are likely to post evenstronger growth in the recent future.Moving forward, the tablet PC marketis predicted to be highly competitivewith many new entrants in 2011 andthe coming years. According to IDC3worldwide media tablet shipmentsexpected to grow from 7.6 millionunits in 2010 to more than 46 millionunits in 2014, representing a CAGRof 57.4%.TVs will continue to evolve as‘smarter’Television is getting smarter withthe addition of features like webFigure 6: Consumer Electronics Global Retail Sales Revenue Split by Regions, 2008, 2010 & 2011% Split100%90%Africa & Middle East, 5%Africa & Middle East, 5%Rest of APAC, 12%Rest of APAC, 12%80%Japan, 8%70%China, 10%60%South America, 9%50%North America, 21%40%30%20%10%0%Europe, 35%2008Rest of APAC, 12%Japan, 10%Japan, 8%China, 12%China, 13%South America, 10%South America, 12%North America, 21%North America, 21%Europe, 29%Europe, 28%2010Bars may not equal 100% due to roundingSource – GfK: “World Market of Consumer Technics”, Juergen Boyny, May 12, 20113 IDC: “Worldwide and U.S. Media Tablet 2010-2014 Forecast”, By: Susan Kevorkian, Bob O’Donnell, 20 May 201010Africa & Middle East, 6%2011

High Tech Manufacturingsurfing, downloading videos, livestreaming of games from websites,and downloading news and trafficupdates. Although smart TVs madeup a small portion of overall saleslast year, the number is growing, asconsumers recognize the vast amountof web-based content availableto them.From Google to Samsung, electronicsand technology players are betting onweb content delivered directly toTV sets. Samsung has also upgradedits Internet@TV feature to includeSamsung Apps from leading serviceproviders like Associated Press,Blockbuster, Fashion TV, Twitter,Netflix and YouTube. LG has alsolaunched “Smart TV” in the marketwith features like network-enabledHDTV features, wi-fi-like DLNAsupport, 150 TV Apps (free andpremium – i.e.Netflix, Hulu Plus,VUDU, etc.) and a web browser.According to DisplaySearch estimates,21% of all TVs shipped in 2010 haveinternet connectivity, and the segmentis expected to grow at doubledigit rates over the next four years,reaching 122 million units by 2014.Evolution of user interfacesThe evolving user interface representsa key challenge for designers ofconsumer electronics. It requiresmapping the complex user actions tocreate a spontaneous yet productiveexperience. With all of their senses,users are on one side of this paradigmwhile the device is on the other.Touchscreens are now integrated intoa wide range of products spanningfrom Microsoft’s Surface tablets toeveryday cell phones. As technologycontinues to evolve, multi-touchall-point technology is expected tobring touchscreens to the next levelwith rich applications and increasingreliability.Microsoft is planning to launchProject Natal, which has camerabased sensors and the ability todetect full body movements, for theXbox 360. It will be interesting toFigure 7: Consumer Electronics Global Retail Sales Revenue Splitby Top-Tier Products, 2008, 2010 & 2011100%90%80%37%32%30%60%9%3%8%3%7%50%14%15%16%% 0812%16%20102011(F)Smart PhoneMobile PhoneLCD TVPlasma TVMobile PCDesk PCTablet PCOtherthe way we see itsee the consumer’s response to thesenew control schemes, and how soonsoftware is developed that can takeadvantage of it.With such user interfaces, interactive3D gaming, keyboard entry andmap manipulation are some of theapplications that will gain increasingtraction. This multi-touch all-pointtechnology will provide OEMs withopportunities to better understandtheir users and ultimately help themto create the next generation of userinterfaces and devices.Key Takeaways The global consumer electronicsmarket is expected to grow closeto 10% in 2011. Consumer electronics demandfrom US and Europe anddeveloping economies likeIndia and China is expected to fuelthe growth. Increasing digitization of consumerelectronics goods along withfalling prices of these goodsin several regions are some of thekey reasons consumers arespending more on consumerelectronics. Other key growth drivers includethe advent of mobile broadbandalong with portable media players,high-definition recordingand display products, andcontinuous automation. Key players in the market includeSony, Apple, Sharp, LG, Samsung,Matsushita, Koninklijke Philipsand SANYO.Source – GfK: “World Market of Consumer Technics”, Juergen Boyny, May 12, 201111

Semiconductors and SolarSemiconductorsAffected by the global economicrecession, sales in the globalsemiconductor market declined by10.4% from US 255 billion in 2008to US 228 billion in 2009. However,in 2010 worldwide semiconductorrevenues increased 30.9% to reachUS 299 billion, according to the latestGartner semiconductor spendingforecast.The industry’s recovery was strongand sustainable across all the keymarket verticals, regions and devicecategories. Applications, increasingtraction of smart phones, mediatablets and eReaders, automotiveinfotainment, notebook PCs, datacenter servers, and wireless and wiredcommunication infrastructure aredriving the robust consumption ofsemiconductors worldwide.The largest category of thesemiconductor market is all“general-purpose” standardsemiconductor products, which wasestimated at US 196.8 billion in2010. This figure is expected to reachUS 259.5 billion in 2015, reflectingCAGR of 5.7% during the period2010 to 2015.All application-specific devicesemerges as the second fastest growingcategory with a CAGR of 6.1%,higher than the overall semiconductorgrowth figure of 5.9% for the period2010 to 2015.Finally, non-optical sensors remainsan important space and emerges asthe fastest growing category. Gartner4estimates this segment will grow fromUS 4.0B in 2010 to US 7.2B in 2015,representing CAGR of 12.5%.Figure 8: Revenue from the Consumption of Semiconductors Forecast, 2009 – On-Year Growth Rate %Revenue from the Consumption ofSemiconductors in millions of US 42015-20%GrowthSource – Gartner, Inc.: “Gartner Market Databook, 2Q11 Update,” Richard Gordon, Peter Kjeldsen (Telecom), Kathryn Hale (IT Services), Jonathon Hardcastle (Computing Hardware) and ColleenGraham (Software), 29 March 20114 Gartner, Inc.: “Gartner Market Databook, 2Q11 Update,” Richard Gordon, Peter Kjeldsen (Telecom), Kathryn Hale (IT Services), Jonathon Hardcastle (Computing Hardware) and Colleen Graham(Software), 29 March 201112

High Tech ManufacturingSemiconductor consumption in Chinacontinues to outpace the rest ofworld. In 2009, China’s share of thesemiconductor market was 41% whilethe Americas and Japan were at 17%and 16.9%, respectively.Figure 9: Worldwide SemiconductorMarket by Region, 2009In terms of market share, Intelcontinues to lead the market withclose to 14% market share, followedby Samsung at 9.4%. Other leadingchip suppliers are Texas Instruments,Toshiba and STMicroelectronics.Together, the top 10 vendorsrepresent 49% of overall marketrevenues.ROW, 11.9%Europe, 13.2%Growth of media tablets andeReaders will continue to fueldemand for semiconductorsJapan, 16.9%Americas, 17.0%China, 41.0%Source – Semiconductors Industry Association andCCID ConsultingAccording to Electronics.ca, mediatablet and eReader semiconductorsregistered growth of over 2,000% tothe way we see itreach US 3.3 billion in 2010. Thesemiconductor suppliers continue toenable OEMs to bring new productsto the market. The starting point wasthe launch of the iPad after which themarket has shown a high degree ofoptimism. Further, sales of theAndroid Honeycomb Media Tabletand eReader semiconductor areexpected to grow by over 100% in2011.Semiconductor firms often enabletablets with features like touchscreencontrollers and sensors, basebandmodems, wi-fi chipsets and relatedintegrated circuits (ICs). In the recentpast growing interest amongconsumers has created unlimitedopportunities for semiconductorsuppliers in developing new chips andsoftware platforms that will enablethese products and will provide abetter user experience. BeyondRevenue from the Consumption ofSemiconductor by Categories in millions of US Figure 10: Semiconductor Worldwide Forecast, 2Q 2011 259,57820082010All General-Purpose Standard ProductsAll Application-Specific DevicesNon-Optical SensorsSource – Gartner, Inc.: “Gartner Market Databook, 2Q11 Update,” Richard Gordon, Peter Kjeldsen (Telecom), Kathryn Hale (IT Services), Jonathon Hardcastle (Computing Hardware) and ColleenGraham (Software), 29 March 201113

semiconductors, these suppliers arealso targeting opportunities to provideOEMs with system software as well asaccess into app stores therebyreducing the product lifecycles.According to the IDC report5,“Worldwide Media Tablet andSemiconductor Forecast: TheExplosion of an Opportunity,” theappeal of media tablets will drive thesemiconductor revenue opportunity toa five year CAGR of 31%.Automotive will be the next pillarof growth for semiconductorsuppliersThe automotive industry hastransformed over the last coupleof years with rapid integration ofsemiconductors into vehicles resultingin improved overall performanceand efficiency. The advent ofsemiconductors in the automotiveindustry has enabled many vehiclemanufacturers to implementapplications on a single chip andavoid unnecessary complexities.According to a report publishedby Frost & Sullivan, arrival of theconcept of integrated electronicssolutions was one of the primarydrivers of growth. However, afterexperiencing stiff decline in vehicledemand from 2008 automotivesemiconductor sales are back ontrack with the revival of the globaleconomic outlook in 2011.According to Semicast, themarket volume for automotivesemiconductors is forecasted to growFigure 11: Worldwide Semiconductor Market Share, 201014.0%Intel9.4%Samsung ElectronicsToshiba4.1%Texas Instruments4.0%STMicroelectronics3.5%Renesas Electronics3.4%3.3%Hynix SemiconductorMicron urce – Gartner, Inc.: “Market Share Analysis: Preliminary Total Semiconductor Revenue, Worldwide, 2010,” Peter Middleton, Steve Ohr, Gerald Van Hoy, Nolan Reilly, Andrew Norwood, JohnBarber, Adriana Blanco, Jon Erensen, Christian Heidarson, Masao Kuniba, Ben Lee, Adib Carl Ghubril, Bryan Lewis, Mark Hung, Sergis Mushell, Ganesh Ramamoorthy, Paul O’Donovan, MarielenaOppenheimer, Hiroyuki Shimizu, Amy Teng, Joseph Unsworth, Andrew Philips, Alfonso Velosa, Brady Wang, Jamie Wang, Masatsune Yamaji, 13 April 2011514IDC: ‘Worldwide Media Tablet and eReader Semiconductor 2011–2015 Forecast’: The Explosion of an Opportunity by Michael J.Palmahttp://www.idc.com/getdoc.jsp?containerId prUS22777311

High Tech Manufacturingat double the rate — from US 20billion in 2010 to US 39 billion in2014, on a global basis registering anaverage annual growth rate of almost20%. The recent surge in automotivesemiconductor demand is primarilydue to the growth in light vehicleproduction in the emerging markets,particularly in China, Brazil, Russiaand India.The rise of environmentally friendlyvehicles like hybrid electric andbattery electric cars is expected tocreate new revenue opportunities forsemiconductor suppliers. Productionof hybrid vehicles is expected toincrease from 3 million in 2010 to47 million in 2017. This will alsodrive the power train industry, whichis forecasted to grow at a higherrate when compared to the overallsegment. Entertainment systems arealso expected to impact growth inautomotive semiconductors. In-vehicleentertainment systems are growingin complexity and functionality asconsumers demand a “digital home”experience in their cars.Wireless Local Area Network(WLAN) chipset market setto outpace the averagesemiconductor industry growthAccording to iSuppli, WLANchipset shipments are projected toreach 738.9 million units in 2011,representing a sharp growth of101.5% from 366.8 million units in2010. By 2014, chipset shipments areexpected to increase to more than 2billion units.In addition to WLAN chipsets802.11n wi-fi standard, otheremerging connectivity technologiesare also gaining traction in the dailylives of consumers such as WirelessPersonal Area Networking (WPAN),which encompasses disparatetechnologies like Bluetooth and nearfield communications. In both WLANand WPAN technologies, radio wavestransmit and exchange data over shortdistances between devices. Demandfor these technologies is growing dueto ease of use and increased interestin mobility.the way we see itAnother connectivity technology,ZigBee, is trying to gain momentumin the home automation and smartutility monitoring applicationssegment. ZigBee is an IEEE 802.15.4standard for data communicationswith business and consumer devices.It is designed around low-powerconsumption allowing batteries toessentially last forever.The ZigBee standard providesnetwork, security and applicationsupport services operating on top ofthe IEEE 802.15.4 Medium AccessControl (MAC) and Physical Layer(PHY) wireless standard. ZigBeeis penetrating the next-generationautomated manufacturing industrywith small transmitters in everydevice on the floor, allowing forcommunication between devicesto a central computer. This newlevel of communication is creatingopportunities for remote monitoringand manipulation.Figure 12: Global Silicon Solar Cell Market Sizing, 2010 – 2013MW - Cell ProductionUS 1.36US 1.2220,000US 1.02US 12201310.55,0000Average Selling Price in US 1.525,0000RevenueAverage Selling PriceSource – GTM Research, 201115

Global solar power marketAfter registering substantial growth,the photovoltaic (PV) industry slowedfor a brief period in 2009 due to theglobal economic downturn. Sluggishdemand resulted in increasinginventory levels, ranging from rawmaterial silicon and PV cells tocomplete PV systems.Massive capacity and limitedutilization pulled down the prices ofcrystalline silicon solar cells, panelsand modules in most of the markets.According to Global Industry AnalystsInc. (GIA), this drop in prices wasalso attributable to a sharp declinein silicon prices to as low as US 50per kg. The falling prices, however,ushered in a period of cost-effectivesolar systems, bringing down the costof entire PV systems.However, the PV market reboundedquickly, backed by the economicupturn in the developing countriesof Asia, including China and India,as well as industrial subsidy policiesacross most of the countries andthe expansionary monetary policyadopted by the central banks. Theincreasing prominence of Asia in thesector is primarily attributed to solarcell production in China and Taiwan,which together accounted for 49%of the global solar cell productionin 2008. Going forward, the globalphotovoltaic market is poised forrobust growth, owing to the rapidadoption of solar energy acrossvarious regions.In terms of production, Chinahas emerged as the world’s largestproducer of solar cells replacingJapan, which had massive solarcell capacity worldwide until 2007.Chinese solar companies establishednew manufacturing facilities andinvested huge sums in productionfacilities since 2005, and emerged asa strong market contender by 2008.China’s solar cell output totaled2,278.6 MW in 2008, making it thenumber one producer in the world.However, Chinese solar manufacturingcompanies have yet to move theirsurplus inventory created during therecession. These companies overproduced solar panels in 2007 and2008 with the expectation that thesolar markets would thrive during2009. As a result, low-cost panelsare available, which in turn lowersthe up-front costs of solar powergeneration for customers. Panel priceshave fallen from the high range of 3.50 to 5.00 a watt during 2008 toan expected 1.36 per watt in 2011.According to GTM Research, averagesolar cell prices per watt are expectedto decrease from US 1.36/watt in2010 to US 0.92/watt in 2013. In2013, the global solar cell marketvalue is expected to reachUS 18.7 billion.Key Takeaways 2010 was a rebound year for the overallsemiconductor market. After enduring considerablechallenges during the global recession of2008 – 2009, the semiconductor market segmentexperienced double-digit growth rates during 2010. Semiconductor companies are exploring emergingtechnologies that will help them drive economiesof scale; some of the key focus areas forsemiconductor vendors are: Investments in system-on-chip (SoC)design capability Focus on customer-driven solutions Reduce system cost by offering highlyintegrated devices Development of Intellectual Property The top 10 players are Intel, Samsung Electronics,16Toshiba, Texas Instruments, STMicroelectronics,Renesas Electronics, Hynix Semiconductor, Micr

the global consumer electronics market is expected to grow 10.4% in 2011 to US 964 billion, according to the Consumer Electronics Association's retail forecast2. In 2010, worldwide sales of consumer electronics products grew 13% to US 873 billion from 2009. In 2009 the total retail sales of consumer electronics goods fell 9% amounting