Analog & Power management knowledge library

Why the digital world needs analog semiconductors?

The era of digitalisation is ever advancing, almost as if our world were solely represented and controlled by ones and zeros. But this appearance is deceptive: because even if the processing of all data and signals in the digital world is carried out through binary – the physical world will still remain analog. Every physical variable – be it an audio signal, temperature, voltage – is an analog value.

This is why analog semiconductor components are important technological precursors, as they enable many state-of-the art digital devices to be developed in the first place. They operate and control functions in the “real world”, such as temperature, speed, sound and electric current, and represent the interface to the digital world. These analog semiconductor components come in many different forms, including Integrated Circuits (IC) for energy management, signal converters and interface chips. Analog semiconductors can be found in consumer devices, computers, communication systems, in modern cars and in industrial automation technology. In wearables, their purpose, among other things, is to ensure the battery can supply energy for as long as possible, while in many other areas they control electricity consumption.

Figure 1: Market share of analog integrated circuit (IC) sales worldwide from 2014 to 2021, by application

A reflection of the real world

Signals from the “real” world are stepless and continuous. This means that their variables can have any value, which differentiates them from digital technology that only recognises the values 0 and 1. To measure or change the respective value, you need corresponding analog semiconductors.

Infographic: Sound wave

“Analog” actually means “proportional”: the analog circuit represents the real signal proportionally in electric voltage or amperage. This means that an analog circuit generates an electronic representation of our physical world: with analog chips, voltage and current change continually in accordance with the variable of the ingoing signal.

Mixed-signal building blocks combine analog and digital functions in a single chip, thus enabling digital electronics to interact with the outside world.

High demand for analog semiconductors

Analog interfaces are needed now more than ever: firstly, current technologies, such as the Internet of Things (IoT) and Industry 4.0, need more and more sensors to receive and process signals from our surroundings. Secondly, global efforts to counteract climate change are leading to increased electrification in all manner of areas – from cars to building heating. This means that there is huge growth potential for analog chips that are specifically designed for energy management.

According to the market analysts at Verified Market Research, the global market for analog ICs amounted to around 349 billion US dollars in 2020. And it is predicted to grow even further to around 669 billion US dollars by 2028, which equates to CAGR of 8.46 percent.

Infographic: Global IC market

The need for energy management in almost all electronic products plays a key role in the growth of the analog semiconductor market. The thriving popularity of smartphones, tablets and other mobile devices will further boost the demand for analog ICs in the communications sector. Other aspects that are giving rise to additional growth are the ever-faster product time-to-market, decreasing IC costs for individual functions and expanding functionality.

The progressive introduction of the Internet of Things in different sectors means that analog ICs are subject to strict design requirements. To create an ecosystem out of automated devices, the IoT requires analog chips that enable efficient electricity consumption and accurate signal processing. Market growth is also being stimulated by the increased use of analog ICs in sectors such as health monitoring, LED lighting and automotive applications.

Streamlining the design process

An analog chip is typically made up of transistors as well as passive elements such as an inductor, capacitors and resistors. You need an accurate understanding of the relationship between the transistors and the passive elements to be able to develop analog chips. Designing analog chips is therefore a complex and multi-dimensional task that is compounded by the fact that, unlike digital chips, it is very difficult to standardise analog ICs; every application requires a unique, customer-specific design.

As a result, the semiconductor industry has come up with several solutions to make designing the system considerably easier. These include innovative packaging solutions and new technology approaches, which are helping to meet the demand for smaller, reliable chips that are high in performance, better in energy efficiency and lower in cost.

To accelerate the circuit design process and reduce any design risks, developers have a whole host of design tools, reference designs and software development kits at their disposal. During the development stages, developers can use electrical and thermal simulation solutions to “virtually” test the finished design of an analog chip before the hardware prototyping stage.