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Broadcom, Qualcomm move up in latest ranking from Gartner

Posted: 19 Dec 2012 ?? ?Print Version ?Bookmark and Share

Keywords:global chip market? ranking? PC business? DRAM? NAND?

According to market research firm Gartner, the global chip market will decline by 3 per cent in 2012 to $297.6 billion with the top 25 vendors generating 68.2 per cent of the total. The research firm cut a forecast in which the global chip market is set to decline by 3 per cent in 2012 to 297.6 billion, with the top 25 vendors generating 68.2 per cent of the total.

As a result of the weakness in 2012, Gartner now forecasts that the industry will show little growth in the first half of 2013 but that the second half would see a recovery phase.

Steve Ohr, a research director at Gartner, said that the PC business, ordinarily a growth driver, was a declining market in 2012 for the first time in many years. "PC production declined 2.5 per cent in 2012. Even the smartphone juggernaut had begun to show signs of maturing, though it remained the strongest driver for revenue growth in 2012," Ohr said.

 Top 10 Semiconductor Vendors

Table 1. Top 10 Semiconductor Vendors by Revenue, Worldwide, 2012 (millions of dollars). Source: Gartner (December 2012).

Intel is set to record a 2.7 per cent revenue decline, mostly due to declining PC sales. At No. 2, Samsung Electronics saw its semiconductor revenue fall due to declines in its three major product areas, DRAM, NAND flash and system integrated circuit (IC). Bucking the industry trend and rising three places to No. 3, Qualcomm attributed its 29.6 per cent growth to continued adoption of smartphones and the growth of 3G and LTE technology in emerging regions, such as China and India.

The only other top 10 semiconductor vendor to record positive growth in 2012 was Broadcom, which rose from the 10th to the ninth position with growth of 8.8 per cent. While part of the company's year-over-year performance gain was attributed to the acquisition of NetLogic Microsystems, the highest organic growth in the company was once again achieved by the Mobile and Wireless division, which grew close to double digits. Broadcom's third division, Broadband, bounced back from a revenue decline in 2011 by growing in the mid-single digits in 2012.

As a group, memory makers suffered the most. DRAM makers suffered from rapid price declines, while the NAND flash market also saw strong price declines as a consequence of sluggish bit growth. Overall, Samsung's semiconductor revenue was down 8.7 per cent, and SK Hynix's was down 11.2 per cent.

- Peter Clarke
??EE Times





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