Commentary: Electronics outlook seems dreary; in fact it's the opposite

EV opportunity
This proliferation of vehicle electronics has enabled increased fuel efficiency, improvements in safety and comfort, and helped meet emission guidelines and mandates. In parallel, automakers are searching for ways to reduce vehicle weight, and one way to meet this objective is by replacing mechanical functions with electrical/electronic control, furthering the proliferation of vehicle electronics.

Many of the same attributes are needed to succeed in the industrial market. The industrial market presently represents 41% of our total sales and is dominated by thousands of small and medium size customers. These companies develop products for a highly diverse end market, but the need for innovation in this market is ubiquitous. The industrial market is divided into many submarkets, each with unique requirements for product performance.

We’ve found that the industrial market is the common denominator for all markets. Growth, for example, in the consumer, computing or telecom markets in turn drives increased demand for more equipment and infrastructure, which ultimately benefits the industrial market. Thus growth in any market accelerates the industrial business, driving it to be our largest end market, with anticipated faster growth than the overall analog market in the future.

Sensor central
We have concentrated efforts in several emerging innovation-rich new markets. These include the micro-module family of products, digital power products, energy harvesting products and low power wireless sensor network products through the acquisition of Dust Networks.

The areas of smart low power wireless networks and energy harvesting are emerging markets with many opportunities. Imagine millions of smart connected devices powered autonomously by energy harvesting devices, which offer staggering opportunities for analog and mixed-signal products.

All we need now is for the U.S. Congress to act and create a business friendly tax structure and develop a plan for a balanced budget. Europe must find a way to contain its debt crisis, and China needs to regain its momentum. These are big challenges, but when solved will drive a surge in the technology business worldwide, and future growth in which we have the products, technology and expertise to participate.

Our confidence in the future is a basic part of our makeup. Linear, like other companies born in Silicon Valley, is driven by innovation and we are excited by the challenges we face. Looking out over the next five to ten years, my optimism only grows. 

(Lothar Maier is CEO of Linear Technology, headquartered in Milpitas, Calif. Before being named CEO, in 2005, Maier served as Linear'sCOO. Before joining Linear, held management positions at Cypress Semiconductor Corp. from 1983 to 1999. He holds a BS degree in chemical engineering from the University of California at Berkeley).