M&A moves alter MCU vendor ranking

May 09, 2017 // By Peter Clarke
A series of mergers and acquisitions by companies pursuing growth in IoT, automotive and other emerging markets changed the MCU vendor ranking in 2016, according to IC Insights.

NXP, Microchip Technology and Cypress moved up the ranking driven by increased revenues resulting from acquisitions of companies that sold microcontrollers. Meanwhile, those suppliers not making significant acquisitions in microcontrollers posted low-single digit percentage increases or declines in MCU sales in 2016.

NXP's MCU revenues more than doubled in 2016 following its $11.6 billion acquisition of Freescale Semiconductor in December 2015 and this propelled NXP to overtake Renesas and become the leading MCU vendor in the world. NXP had been sixth in the 2015 MCU ranking.

MCU vendors ranked by sales in 2016. Source: IC Insights.

In 2016, Renesas' MCU sales fell 4 percent to nearly $2.5 billion, or about 16 percent of the total microcontroller market.  In 2011, Renesas' MCU marketshare was 33 percent of worldwide microcontroller sales.

Microchip climbed from fifth in the 2015 MCU ranking to third in 2016 with sales increasing 50% to $2.0 billion following its $3.4 billion acquisition of Atmel in 2Q16. 

Cypress moved into eighth position in the MCU ranking with sales increasing 15 percent in 2016 to about $622 million partly aided by the acquisition in March 2015 of Spansion.

The biggest decline in the MCU leader list was posted by Samsung, which saw its sales drop 14 percent in 2016, primarily because of weakness in the smartcard microcontroller market. Samsung sells MCUs to OEMs but also serves in-house needs for its own brands of consumer electronics, computers, and smartphones.

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www.icinsights.com

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