VOLUME 10, ISSUE 4

April 25, 2012

First Quarter Data Converter Market Update

Errors using inadequate data are much less then those using data at all. Charles Babbage (1791-1871), Mathematician, Engineer, Philosopher and Inventor

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As members of the mixed signal IC market, data converters have been affected by those very same supply and demand pressures that have influenced the general semiconductor industry over the first several months of the year. In particular, weak consumer demand from the U.S. and Europe has lingered in the first quarter. PC sales have continued to perform very poorly, while the LCD HDTV market is in turmoil due to lack of consumer interest, over-saturation, and poor margins coinciding with the rise of ultra-low cost LCD production in China. At the flip side, sales of smartphones and tablets have only accelerated during this period, and there has also been a sustained rebound in the automotive and industrial manufacturing markets which first began in the latter part of 2011 and has continued on into 2012. It is expected that these markets will help offset the weakness seen in the consumer and PC spaces as the high inventory levels are now being worked off and demand is steadily returning. Table 1: 2011 and 2010 Worldwide Data Converter Revenue Share by Supplier Company Analog Devices Texas Instruments Maxim Integrated Products Linear Technology Intersil Others Total databeans Estimates As the guiding force in the data converters market, Analog Devices currently has a global market share that is approaching 50 percent, or double that of its next closest competitor in this market. The firm also claims the industrys most extensive portfolio of ADCs and DACs, and, as a result, is responsible for many of the industry's latest advances in data converter design. For example, in December 2011, the firm introduced the AD5780 and AD5790 high-precision DACs, which combine 20-bit and 18-bit performance, ultra-low noise, and integrated precision reference conditioning 2011 Rank 1 2 3 4 5 2011 $M 1,312 625 185 125 69 392 2,707 2011 Share 48.5% 23.1% 6.8% 4.6% 2.5% 14.5% 2010 Rank 1 2 3 4 7 2010 $M 1,422 659 197 142 71 500 2,991 2010 Share 47.5% 22.0% 6.6% 4.7% 2.4% 16.7% Y/Y % -8% -5% -6% -12% -3% -22% -9%

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VOLUME 10, ISSUE 4 VOLUME 9 ISSUE 8

The Databeans Monthly

April 25, 2012

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circuitry into a single device that reportedly enables complex new applications in a wide range of industries. The DACs also can provide a 60 percent reduction in board space compared to competing standalone data converters, according to the firm. Shortly after, in February 2012, Analog Devices introduced the AD9737A, a brand-new 11-bit DAC that enables cable television and broadband operators to synthesize the entire cable spectrum up to 1 GHz into a single RF port, while also only consuming a maximum of 1.1 W of power, according to the firm. The AD9737A also improves QAM (quadrature amplitude modulation) channel density by 20 times over present cable modem implementations, which, according to ADI, allows for the design of next-generation services such as interactive television, high-definition broadcasts and new specialty channels. As a consequence of ADIs heavy reliance on the data converter market, its company-wide fiscal performance has also been closely tied to those in the general data converter industry. Specifically, ADIs revenue declined during its first quarter of 2012 ending in February as consumer demand for products using data converters diminished. For its first quarter, ADI reported revenue of just over $648 million, which was down almost 10 percent from the previous quarter, and 11 percent lower than its first quarter period one year ago. The good news is that ADI believe that the first quarter marked the bottom of the industry cycle, and the firm expects that all of its business segments will see improvements beginning in the second quarter of 2012 and will continue throughout the remainder of the year. Texas Instruments is the second largest supplier by revenue share with roughly 23 percent of the market, and while trailing ADI in market share, has also been responsible for many of the major advances in the data converter market over the past several months. For one the company has been at the forefront of releasing highly integrated data converter devices that incorporate ADCs, DACs, amplifiers and some digital functionality all on a single chip. This allows for the design of unique systems with lower power consumption. For example, in the January 2012, TI introduced its low-power, 12-bit AFE7225 AFE. The AFE7225, which was designed for femtocell base stations and portable software-defined radio (SDR) applications, integrates a dual 125-MSPS ADC and a dual 250-MSPS DAC. According to TI, the integrated chip operates 25 percent faster than the competition, while increasing the signal-to-noise ratio (SNR) by 2 dB and providing up to five times the DAC output current.

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VOLUME 10, ISSUE 4 VOLUME 9 ISSUE 8

The Databeans Monthly

April 25, 2012
The company also introduced what it claims to be the industry's fastest 16-Bit DAC in February 2012. According to TI, the new quad DAC34SH84 is a full 50percent faster and uses 50-percent less power than the closest 16-Bit DAC alternative, clocking in at 1.5 GSPS and consuming only 362 mW per channel. TI has managed to remain a major innovator in this market thanks in part to its industry leading manufacturing processes. Specifically, many of TIs new data converter and signal conditioner products make use of its most recent high-performance BiCMOS SiGe process technology. The remainder of the data converter industry is populated by numerous smaller suppliers, led by Californias Maxim Integrated Products with a share of nearly 7 percent in 2011, followed by Linear Technology with 4.6 percent and Intersil with 2.5 percent. Even though many of these smaller firms have much smaller converter portfolios than leaders Analog Devices and Texas Instruments, they are often responsible for highly innovative new products in this space. For example, in November 2011, Linear Technology introduced its LTC2369-18, which it claims is the industry's highest performing serial 18-bit pseudo-differential SAR ADC. The LTC2369 -18 manages to achieve an impressive 96.5dB signal-to-noise ratio (SNR) and -120dB total harmonic distortion (THD), consuming only 18mW. Despite the high levels of innovation that have been taking place in data converter design in recent times, the market as a whole actually declined for the entire year in 2011. However, this was generally viewed as a temporary setback and most suppliers are united in their belief that 2012 will mark a rebound for data converter sales. This will be boosted by the increasing sophistication of consumer, wireless, and PC products which are placing new demands on and for signal conversion technology. In fact, the chips that manage this signal conversion are the very same that in most instances define the high performance capabilities of the cutting edge technology products that consumers have come to love. This information above is provided from Databeans Inc., in the Q1-2012 Data Converter Market Tracker which was published on April 10, 2012. For Inquiries related to the data included in this article or any other Databeans products, please contact Brice Esplin (brice@databeans.net)

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