The combination of these two companies will represent about 17% of the power management and driver IC market, or $2.2 billion in revenue. The two companies’ share of the LED IC market will stand at more than 25%.
IMS Research senior power analyst Ryan Sanderson commented: “Assuming that the deal is waived through by the regulators, TI, once it completes the acquisition and integration of National, would have just over twice the market share of #2 ranked Infineon, assuming previous years’ results.”
Within the power management area, TI has a strong position in areas such as switching controllers and battery management. Meanwhile, National is strong in areas such as voltage regulation ICs. As a result, the combined company will have a very strong position across a wide range of power IC products.
The merger will also consolidate the two companies’ leadership positions in some emerging areas such as LED driver ICs. IMS Research ranked TI and National #1 and #2 respectively in 2010 and the combined share of the new company is estimated at 26%. Jamie Fox, senior LED lighting analyst at IMS Research, commented: “We estimate that TI held around 19% of this market in 2010, whilst National took 7%. The new combined company will be four times bigger than its nearest competitor in this high growth market, which was worth nearly $1 billion in 2010”.
Prior to the acquisition, TI had been successful in several high volume markets such as mobile, signage and lighting. National was also strong in mobile as well as operating in other sectors such as automotive and lighting.
IMS Research’s market share numbers are drawn from two reports: The LED Driver IC market 2011 and the Power Management and Driver IC market 2011. Both will be published shortly.
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.