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SEPTEMBER 2019       TAP TIMES          -13-          Worldwide MCU unit shipments are expect-
                                                                ed to drop 4 percent in 2019 to 26.9 bil-
                                                                lion from 28.1 billion in 2018, IC Insights
             Microcontrollers will regain                       forecasts.
         growth after slump—IC Insights


                                                                Modest rebound
                                                                In 2020, the microcontroller market is
        SCOTTSDALE, Arizona—The far-flung                       expected to stage a modest rebound af-
        microcontroller (MCU) market is ex-                     ter the 2019 decline, growing 3.2 percent
        pected to contract by 6 percent be-                     next year to about $17.1 billion, while
        cause of an overall slowdown in                         MCU shipments are projected to increase
        electronic systems, falloff in car pur-                 over 7 percent and set a new record-high
        chases and the U.S.-China trade war,                    level of 28.9 billion units (surpassing the
        according to IC Insights’ Mid-Year                      current annual peak of 28.1 billion reached
        Update.                                                 in 2018).



                                                                IC Insights’ Mid-Year Update forecast
        Sales declined                                          shows microcontroller sales rising by a
        In the first six months of this year, world-            compound annual growth rate (CAGR) of
        wide sales of microcontrollers declined                 3.9 percent in the 2018-2023 forecast,
        about 13 percent compared to the first                  reaching $21.3 billion in 2023.
        half of 2018 while MCU unit shipments fell
        14 percent, according to IC Insights’ Mid-              MCU unit shipments are projected to grow
        Year Update to the 2019 McClean Report.
                                                                by a CAGR of 6.3 percent in the five-year
                                                                forecast period to 38.2 billion in 2023.
        With the MCU market showing signs of
        stabilizing at the midpoint of 2019, micro-
        controller sales are expected to pull out of            Increases muted by lower ASPs
        the double-digit percentage slump in the                MCU unit shipments have been climbing
        next six months and end this year with a                by strong growth rates in most years re-
        5.8 percent decline to $16.5 billion com-               cently—driven by the spread of automa-
        pared to the all-time high of $17.6 billion             tion and embedded control in systems,
        in 2018 (below).                                        more sensors, and the rush to connect
                                                                                               applications to
                                                                                               the Internet of
                                                                                               Things (IoT)—but
                                                                                               increases in rev-
                                                                                               enues have been
                                                                                               muted by sharply
                                                                                               lower ASPs, pri-
                                                                                               marily because of
                                                                                               intense competi-
                                                                                               tion in the 32-bit
                                                                                               microcontroller
                                                                                               category.


                                                                                               IC Insights be-
                                                                                               lieves significant
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