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Semiconductor sales up 8% in 1H11

Posted: 05 Aug 2011 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor market? exchange rate? IC sales?

The recent report from IC Insight Inc. has revealed that 1H11 sales of the top 20 semiconductor suppliers grew eight percent from 1H10. The data for the period came as a surprise because non-memory suppliers outperformed memory companies that posted the top growth positions last year.

Infineon posted a 30 percent growth attributed to continuing operations while Qualcomm registered a 29 percent jump due to surging smartphone IC sales. Intel's 23 percent growth was largely a result of its acquisition of Infineon's wireless business. TSMC logged a 20 percent growth while Broadcom grew by 18 percent, benefiting from strong wireless IC sales.

As shown in Figure 1, Intel, which remained number one in the ranking, actually increased its lead over second-ranked Samsung by logging a 43 percent higher sales level in 1H11 as compared to a 24 percent margin last year. Although Nvidia's 1H11/1H10 sales increased by only one percent, it replaced Panasonic in the top 20 ranking. As shown in Figure 1, there are two pure-play foundries in the top 20 ranking. Excluding these two, Marvell and ON Semiconductor would have been included in the ranking.

Among the big five memory suppliers in the top 20 ranking that include Samsung, Toshiba, Hynix, Micron and Elpida, only Samsung and Toshiba registered 1H11/1H10 growth. As shown in Figure 1, even with a stronger yen, DRAM-dependent Elpida registered the worst 1H11/1H10 performance with a sharp 37 percent decline in revenue. In total, 10 of the top 20 suppliers outperformed the total worldwide semiconductor industry 1H11/1H10 growth rate of four percent.

Top 20 IC vendors

In 1H11, the Japanese yen appreciated 12 percent, the Taiwan dollar 10 percent, the euro six percent and the Korean won five percent versus the value of the U.S. dollar in 1H10. As shown in Figure 2, 10 of the top 20 semiconductor suppliers received a boost in sales value in 1H11 when revenue figures expressed in their local currencies were converted to U.S. dollars. In fact, these 10 semiconductor suppliers, in total, would have registered a four percent drop in 1H11/1H10 sales instead of a four percent increase if their revenue figures were expressed in their local currencies. Moreover, the top 20 companies' total 1H11/1H10 sales growth rate would have been cut in half if 1H10 exchange rates were used instead of the current exchange rate figures. It should be noted that both ST and NXP originally report all of their financial results in U.S. dollars.

IC Insights expects modest growth in the worldwide semiconductor market in 2H11. Although the semiconductor market in the second half of the year typically registers a seasonal increase of 10 percent as compared to the first half, IC Insights predicts the 2H11/1H11 semiconductor market to grow only six percent, yielding a full-year 2011 semiconductor industry growth rate of five percent.

Exchange rate effect

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