Intel’s went from fourth place in 2015 to second place but was still a considerable way behind market leader Texas Instruments. STMicroelectronics remained in third-ranked position and Intel swapped places with Infineon Technologies, which dropped to fourth. Intel surge was attributed to double-digit revenue growth at the company’s IoT group due to strength in factory automation, video surveillance and medical applications.

These movements happened while global industrial semiconductor revenues grew to $43.5 billion in 2016, a year-over-year increase of 3.8 percent, IHS Markit said.

Demand for industrial electronics equipment was broad-based, with continued growth in commercial and military avionics, digital signage, network video surveillance, HVAC, smart meters, traction, PV inverters, LED lighting and various medical electronics such as cardiac equipment, hearing aids and imaging systems, IHS Markit said.

The US economy continued to boost industrial spending while improved economic conditions in Europe and large emerging countries like China, India and Brazil toward the end of 2016 that propelled growth. These economic conditions are expected to continue thorough 2017, according to IHS Markit analysis.

“Toshiba, On Semiconductor and Microchip Technology climbed into the top 10 industrial semiconductor supplier ranks in 2016,” said IHS industrial semiconductor analyst Robbie Galoso, in a statement.

Next: Made by M&A

Much of the changing landscape was driven by mergers and acquisitions. The combination of On Semi and Fairchild generated $1.3 billion in 2016 industrial revenues. It allowed On Semi to compete with Infineon-International Rectifier in power discretes On Semi’s 2016 revenue grew nearly 60 percent, largely driven by analog and discretes in the manufacturing and process automation and the power and energy sectors.

Similarly Microchip acquired Atmel and the combination generated $1.2 billion in revenues in 2016 and a microcontroller (MCU) supplier able to compete with NXP-Freescale. Microchip’s 2016 revenue growth of 53 percent was driven by microcomponent ICs in manufacturing and process automation.

Massive investments in light-emitting diode (LED) manufacturing capacity by China propelled Chinese firm MLS into the 2016 top 20 industrial semiconductor supplier ranks,

MLS posted revenue growth of 27 percent, to $640 million, building its share against competition including top-20 firms Nichia, Osram and Cree,” added Galoso.

M&A will continue to affect semiconductor market rankings and IHS Markit expects Analog Devices and Linear Technology, now joined together, will battle for the number four spot in 2017.

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