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Internet of Things Creates an Upside for Semiconductors

More applications for the Internet of Things (IoT) will translate into a significant demand for semiconductors. The emerging IoT market drove demand for 150 million units of multicore microcontroller unit (MCU) chips in 2015 -- that will rise to 1.3 billion units by 2020, according to the latest market study by ABI Research. Industrial IoT, wearables and smart home are the current key market drivers, with the majority of future growth coming from the smart home industry, which will represent 450 million of the total multicore MCU shipments -- that will account for 36 percent of market share by 2020. ABI analysts believe that this growth will be driven by more integrated connectivity and sensor processing hubs and an ongoing shift toward implementing innovative software solutions. "Traditionally, device manufacturers tend to use multiple single-core MCUs to handle a device's multiple sensor functions and connectivity solutions," says Malik Saadi, vice president at AB...