The 2008 Microcontroller market was highly profitable and is predicted to grow 10 percent annually over the forecasted period thanks to numerous applications in automotive, medical, consumer, communications, and, to a lesser degree, computer market.

Microcontrollers are single, simple programmable ICs that are designed for embedded applications and are relatively inexpensive to produce compared to more complex and expensive microprocessors used in PCs. Microcontrollers are typically found in automatically controlled products and devices, including remote controls such as toys, appliances, power tools, automobile engine control systems, and office machines. Hybrid automobiles are predicted to be one major end market for MCUs over the next several years as many of the technologies used in “green” vehicles, such as hybrids, are managed through MCUs. Smart cards are another surging market for microcontrollers, as revenue in this segment is growing at a compound annual growth rate of 14 percent.

MCUs are a critical piece of the overall semiconductor industry and accounted for $13.7 billion in total worldwide revenue and 10.8 billion units shipped in 2008. Revenue is predicted to experience strong average growth of 10 percent until 2014 due to increasing shipment numbers combined with consistently falling ASPs.