Analog ICs have been mostly, but not entirely, replaced by digital chips. Power supply ICs are usually analog chips and are widely used in power systems. The diode is a two-terminal semiconductor that converts or rectifies alternating current (AC) into direct current (DC). Various types of voltage regulators produce a clean DC without ripples and maintain an accurate DC voltage level. Without a voltage regulator, the power supply output voltage changes as DC load current changes. Power supplies that produce clean DC power are very important in home and professional equipment, such as entertainment systems, industrial equipment, and computers.

Analog ICs are still required for wideband signals, and they are still used as sensors. In analog chips, voltage and current vary continuously at specified points in the circuit. An analog chip typically includes a transistor along with passive elements such as an inductor, capacitors, and resistors. Analog chips are more prone to noise, or small variations in voltage, which can cause errors.

Mixed circuit semiconductors are typically digital chips with added technology for working with both analog and digital circuits. A microcontroller might include an analog-to-digital converter (ADC) for connecting to an analog chip, such as a temperature sensor, for example. A digital-to-analog converter (DAC), conversely, can allow a microcontroller to produce analog voltages for making sounds through analog devices.

The analog IC market in 2019 is expected to grow to over $60 billion, this includes; amplifiers, comparators, interface, data converters, power ICs, and special purpose analog products that covers automotive, consumer, computer, wireless, wired, and industrial applications. This stable segment of the semiconductor market should have a long-terms compound annual growth rate of 8 percent, while unit shipments are expected to grow at the same rate leaving prices stable. The strongest opportunity near term for analog is the automotive market. This segment is expected to grow by 10 percent this year in terms of revenue.