This report provides a detailed study of MCU market in 2007, covering following detailed information.

1. MCU structure, MCU function and MCU applications & classification

2. Providing related information of MCU downstream application markets, covering small household appliances market like microwave ovens and electric rice cookers, large household appliances market like refrigerators, air conditioners and washing machines, daily-use meters market like water meter, watt-hour meter and gas meter, remote control market, auto market, USB devices market, smart cards market and entertainment electronics market.

3. Introduction of some MCU manufacturers' operations, products and technology

Microcontroller (MCU or ¦ÌC for short), also called "Single Chip Microcontroller", refers to a single chip that integrates ROM, RAM, CPU and I/O, and achieve various combined control in different applications. MCU has made great progress during the past several years with products ranging from 4-bit MCU to 8-bit MCU, 16-bit MCU, 32-bit MCU and even 64-bit MCU. It is really unprecedented in aspects of product maturity, number of MCU manufacturers and applications scope. Presently, overseas big MCU producers take the leading position in technology due to earlier development and more variety of products, while local manufacturers mainly seize market share by products with multifunction. Needless to say, the price war among local manufacturers is a key challenge to overseas manufacturers.

MCU Classification by Type

Output and Export of China Microwave Ovens, 2003-2009

Source: China Customs

The market demand for microwave ovens worldwide is about 55-60 million units. In China, the total production capacity of Galanz, LG and Midea has already reached nearly 50 million units, while the domestic market capacity of microwave ovens in 2006 and 2007 was only 7-8 million units. Therefore, China's microwave oven industry was an export-oriented industry at the beginning. In 2006, the export of China's microwave ovens reached 46.4 million units, amounting to over 85% of the total production. At present, China ranks the first in the world in terms of both production and export of microwave oven. Presently, a microwave oven normally has one MCU, which means the market demand for MCU in China's microwave oven market reaches 50 million units.

In 2007, global output of home air conditioners amounted to 89.77 million units. As a global air conditioner manufacturing center, China's output of air conditioners accounted for 70% of the world's total in the year. At present, an air conditioner usually adopts one to two MCU, so the sales of MCU in China's air conditioner market are approximately 85 million units.

Output of China Air Conditioners, 1990-2006

Global production of home air conditioners is mainly concentrated in Asia, where its output accounts for 94% of the global total. Nevertheless, 95% of Asian production is mainly concentrated in China, Thailand, South Korea and Japan. Additionally, the emerging air conditioner markets in Vietnam and India are growing year by year. 

China's auto MCU suppliers mainly include Freescale, Fujitsu, ST, Renesas Technology, Infineon, Microchip, Toshiba, NEC, Cypress and AMIS, etc.

Consumption Structure of China Auto MCU, 2005-2012

Source: Renesas

2. MCU Downstream Application Markets
2.1 Small Household Appliances
2.1.1 Application Examples for Microwave Ovens 
2.1.2 Microwave Ovens
2.1.3 Electric Rice Cookers
2.2 Large Household Appliances (Refrigerators, Air Conditioner and Washing Machine) 
2.3 Daily-use Meters
2.4 Remote Control
2.5 Automotive
2.6 USB Equipment
2.7 Smart Cards
2.8 Entertainment Electronic Products

3. MCU Suppliers 
3.1 Renesas
3.2 Microchip 
3.3 ATMEL
3.4 Toshiba
3.5 ST
3.6 HOLTEK
3.7 Sunplus
3.8 ZILOG
3.9 SONIX