YG PRESS NEWS – Can the Secure microcontroller market survive the decline of the SIM Card?

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The microcontroller market in the second half of 2022 surpassed all predictions, fueled by a notable increase in average selling prices (ASP).

  • MCU Market Revenues are now moving beyond pandemic effects such as supply chain issues in 2022, but inflation is still casting a shadow over 2023.
  • The competitive landscape for 2022 was expected to be very close between NXP, Renesas and Infineon for Top 3 as well as a strong performance by 4th & fifth ranked STMicroelectronics and Microchip. But Infineon had a very strong finish for 2022 leaping into a position of a three-way tie with Renesas and NXP.
  • While shipments declined in 2022 and were somewhat stagnant, the MCU product mix have favored a strong increase in ASP driving revenue growth.

According to Yole Intelligence, part of Yole group, in the Microcontroller (MCU) Market Monitor, in the latter half of 2022, there was an unexpected surge in demand for high-performance and highly reliable MCUs. Contrary to expectations of stagnant growth, this increased demand for the more expensive MCUs resulted in higher average selling prices (ASPs), boosted shipments, and ultimately led to a significant revenue increase. As a result, annual MCU revenue experienced a 20% year-on-year growth, with shipments rising by 7%. The annual growth in the High Reliability MCU markets, including Automotive, Mobility, Aerospace, and Defense, played a significant role in boosting the average selling price (ASP). Surprisingly, the Multimarket MCUs, commonly used in Consumer, Personal Data Processing, Enterprise Data Processing, and Industrial markets, experienced growth in the latter half of 2022 instead of the expected decline. The demand for higher performance Embedded Secure MCUs also increased, surpassing older smart card IC solutions as SIM technology transitioned to eSIM and the need for enhanced security in IoT applications grew. This shift toward 32-bit MCU solutions in various growing markets contributed to the overall increase in ASP, thereby further driving revenue growth. The unexpected gains in the latter half of 2022 resulted in a significant shake-up in the competitive landscape of MCU suppliers, a phenomenon rarely witnessed in the MCU market for many years. Our estimations indicate that three leading suppliers, namely Infineon, NXP, and Renesas, each captured approximately 18% of the MCU market in 2022, creating an exciting three-way tie among them… For more information about this analysis, please contact us!

Titre du visuel

june 2021

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