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Gartner confirms 2018 semiconductor revenue to be $474.6 billion

Monday, April 15, 2019

Semiconductor industry revenues were $474.6 billion in 2018, says Gartner, representing a 12.5% increase from 2017.

2018 growth was weaker than 2017’s 21.9% due to memory growth slowing to 24.9% versus 2017 growth of 61.8%.

“Despite slowing growth, the memory market was still the largest semiconductor market, accounting for 34.3% of revenue,” says Gartner’s Andrew Norwood, “this was driven by increases in ASPs for DRAM for the majority of 2018. However, ASPs began to decline in the fourth quarter and this will continue through most of 2019 due to oversupply conditions.”

Samsung increased its lead as the No. 1 semiconductor vendor due to the booming DRAM market.

Currently, 88% of the company’s revenue comes from memory sales.

“Samsung’s lead is literally built on sand, in the form of memory silicon, and those shifting sands in 2019 will almost certainly lead to Samsung losing its No. 1 semiconductor crown to Intel in 2019,” says Norwood.

Intel’s semiconductor revenue grew by 12.9% compared with 2017, despite delays in the introduction of its 10nm manufacturing process and a constrained low-end CPU supply situation in the second half of 2018.

Hynix experienced the strongest growth among the top 10 worldwide semiconductor vendors with a 37.4% increase in 2018.

By: DocMemory
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