Tuesday, April 1, 2008
Highlighted by mixed vendor performances that showed three vendors in the top 10 reporting double-digit growth while four vendors showed declines in revenue, Stamford, Conn-based market research company Gartner Inc reported worldwide semiconductor revenue of $273.9 billion in 2007, a 3.8% increase from 2006.
“With fears of recession high, semiconductor vendors need to move beyond tracking the performance of their end customers and markets, and track end users’ spending patterns to pick up early warning signs of slowing demand or increased opportunities,” Richard Gordon, managing VP at Gartner, noted in a statement. “Periods of uncertainty, like the current one, often create ideal situations to strengthen product and application portfolios without paying inflated prices.”
On a vendor basis, Intel grew its revenue more than twice as fast as the semiconductor market average, with growth primarily coming from strong shipments of microprocessors for mobile PCs.
Toshiba increased its revenue by 20.8% in 2007 to $11.82 billion, gaining three places in the rankings and moving into third place, with its strong gains mainly attributed to consumer ASICs for Sony's PlayStation 3 (PS3) video game console, NAND flash and CMOS image sensors for mobile phones. The company also saw continued growth in DRAM.
Top 10 worldwide semiconductor vendors by revenue estimates (millions of dollars)
|
2007 Rank |
2006 Rank |
Company |
2007 Revenue |
2007 Market Share (%) |
2006 Revenue |
2006-2007 Growth (%) |
| 1 |
1 |
Intel |
33,800 |
12.3 |
30,522 |
10.7 |
| 2 |
2 |
Samsung Electronics |
20,464 |
7.5 |
20,138 |
1.6 |
| 3 |
6 |
Toshiba |
11,820 |
4.3 |
9,783 |
20.8 |
| 4 |
3 |
Texas Instruments |
11,768 |
4.3 |
11,984 |
-1.8 |
| 5 |
4 |
Infineon Technology (incl. Qimonda) |
10,194 |
3.7 |
10,533 |
-3.2 |
| 6 |
5 |
STMicroelectronics |
9,966 |
3.6 |
9,854 |
1.1 |
| 7 |
7 |
Hynix Semiconductor |
9,100 |
3.3 |
8,007 |
13.7 |
| 8 |
8 |
Renesas Technology |
8,001 |
2.9 |
7,900 |
1.3 |
| 9 |
9 |
AMD |
5,884 |
2.1 |
7,434 |
-20.9 |
| 10 |
10 |
NXP Semiconductors |
5,869 |
2.1 |
5,874 |
-0.1 |
|
|
Others |
147,045 |
53.8 |
141,879 |
3.6 |
|
|
Total Market |
273,911 |
100.0 |
263,908 |
3.8 |
Source: Gartner (March 2008)
In terms of absolute revenue shifts, the largest drop was in DRAM which saw a decline of $2.4 billion in revenue caused by sharp price declines as a result of oversupply.
Gartner also noted that while market share tables (above) by themselves give a good indication of which vendors did well or badly during a year, they do not tell the whole story. More often than not, a strong or weak performance by a vendor is a result of the overall market growth of the device areas that the vendor participates in, and the company pointed out that its relative industry performance (RIP) index measures the difference between industry-specific growth for a company and actual growth, showing which are transforming their businesses by growing share or moving into new markets and choosing their customers wisely.
Hynix Semiconductor achieved the best RIP ranking and has now been placed in the top performing companies in Gartner’s RIP ranking for the last three years.
In 2007, DRAM drove the revenue growth as Hynix’s DRAM revenue increased 19.1% compared with overall DRAM revenue, which declined by 7.1%. Hynix achieved this by being the most-aggressive vendor in adding capacity, but with the market plagued with oversupply though 2007 and consequently steep average selling price declines, Hynix must take most of the blame for the market’s unprofitability in the second half of 2007, Gartner concluded.
By: DocMemory
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