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With the rising demand for energy-efficient products, an increasing number of power devices—such as power management ICs and MOSFETs—are being integrated into a wide range of electronic systems. As a result, the overall output of devices and the proportion of power components used in products have both been on the rise. This trend has driven China's power device market to experience rapid growth over the past few years. In the last five years, the market has seen a compound annual growth rate of 27.8%, which is significantly higher than the average for semiconductor markets.
Power devices are generally categorized into discrete power devices and power management ICs. In terms of market share, power management ICs account for approximately 40%, while discrete power devices make up the remaining 60%. Both types are widely adopted across various electronic applications.
After years of strong growth, the power management IC market saw a slowdown in 2007 due to factors like inventory adjustments, slower adoption rates, and declining prices. It was expected that the market growth rate would fall to around 15% that year, marking the first time in recent years that the growth rate dropped below 20%. However, with its relatively low market share at the time and the anticipated increase in future applications, the Chinese power management IC market is projected to rebound and reach a 20% growth rate by 2008.
In terms of product types, LDOs and DC-DC converters remain the most commonly used power management chips. However, both were impacted by falling prices and slower usage growth in 2007, leading to a slight decline in their market share. Meanwhile, the growing adoption of portable devices such as mobile phones boosted the market growth for PMUs (Power Management Units) and battery management solutions. These segments are expected to see increased market share in the coming years.
Power management chips are primarily used in computers, network communications, consumer electronics, and industrial control systems. Although automotive electronics currently hold a smaller market share, it is one of the fastest-growing sectors. Looking ahead, automotive electronics will continue to be a key driver of growth, with its market share expected to expand rapidly in the next few years. Network communications will also grow quickly, especially with the expansion of 3G technology, while consumer electronics, computers, and industrial controls will remain relatively stable.
Technologically, power management chips are continuously evolving toward higher integration, greater power density, improved voltage and current handling capabilities, and better energy efficiency. Ongoing technological advancements are a major factor driving the growth of the power management chip market.
In terms of competition, European and American manufacturers have long held a dominant position in both market share and technological innovation. U.S. companies such as National Semiconductor, Texas Instruments, Fairchild, On Semiconductor, IR, and Maxim are particularly focused on power management. While European firms like STMicroelectronics, NXP, and Infineon are also strong, they operate in broader product lines. The dominance of Western manufacturers in this sector has persisted for many years and is expected to continue in the near future.
However, this does not mean that emerging players from China and other regions have no potential. Many Chinese design companies have successfully developed low-end power management chips, including LDOs, DC-DC converters, and LED drivers. Companies like Shengbang Microelectronics, Changyuntong, Longding, Mingwei, and China Resources Weiwei have made progress in the market. Although these firms still lag behind global leaders in terms of product variety and technological sophistication, they have gained some competitive presence in the mid-to-low end of the market. With continued development, they may one day challenge established players in specific applications and product areas.