The semiconductor industry’s uneven recovery is continuing, but where individual companies are headed is still uncertain, according to market research firm iSuppli Corp.

While the recovery is continuing, its momentum has slowed substantially. According to iSuppli’s data, year-to-year comparisons of overall semiconductor revenues for Q1 show an increase of 9.6 percent, with two thirds of the 72 companies being tracked achieving positive growth. But on a sequential basis, comparing Q4 2002 with Q1 2003, revenues show a market decline of 5.8 percent, with only 40 percent of companies tracked posting growth.

“Based on our Q1 market share data, it is difficult to determine whether the semiconductor market glass is half full or half empty,” said Dale Ford, VP for iSuppli market intelligence services, in an iSuppli report. “Year-to-year comparisons for the period provide evidence of a broad-based recovery over the last 12 months, but quarter-to-quarter comparisons demonstrate that weaker market conditions have nearly evaporated the 5.9 percent Q3-to-Q4 gains made by suppliers in 2002. Clearly, the second quarter results to be announced in the next few weeks will indicate how far individual companies must go in the second half of the year to sustain solid year-to-year growth in 2003.”

Ford said that companies finding the glass half full include Qualcomm, Sanyo Electric, Hitachi, Infineon, Fujitsu, Sharp Electronics, AMD, TI and Toshiba. Those finding their glass half empty include Samsung, Matsushita, Sony, IBM Microelectronics, Philips Semiconductors and Motorola, all of which posted double-digit declines from Q4 2002 to Q1 2003.

Hitachi, AMD, Infineon, Toshiba, TI, Mitsubishi and Sharp posted quarter-on-quarter revenue gains. Comparing Q1 2002 to Q1 2003, Qualcomm, Sanyo, Hitachi and Infineon saw revenues increase by more than 30 percent. Hitachi, Fujitsu, Sharp, Qualcomm and Sanyo jumped two or more positions on iSuppli’s overall rankings.

“Five companies were able to sustain growth by both comparisons [annual and sequential], including Toshiba, Texas Instrument, Infineon Technologies, Hitachi and Sharp Electronics. Only Philips Electronics experienced declines by both comparisons. Interestingly, Renesas -- the new company formed by the merger of Hitachi and Mitsubishi semiconductor operations in the second quarter -- would have been ranked as the No. 2 worldwide semiconductor supplier at the end of Q1 with revenues of $2.164 billion, edging out Samsung Electronics for that position.”

By: DocMemory
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