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Chip market shrank 1.9% in 2015, says Gartner

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By eeNews Europe

As recently as July 2015 Gartner was saying the 2015 market would grow by 2.2 percent compared with 2014 (see Gartner reduces chip market forecast, again) but the forecast was wrong Gartner now states.

Weak demand for key electronic equipment, such as PCs and smartphones, and the strength of the dollar in some regions are the reason it got it wrong, the market research organization said.

Top 10 semiconductor vendors ranked by worldwide revenue in 2015 (Millions of dollars). Source: Gartner.

"2015 saw mixed performance with optoelectronics, non-optical sensors, analog and ASIC all reporting revenue growth while the rest of the market saw declines," said Sergis Mushell, research director at Gartner, in a statement. "Strongest growth was from the ASIC segment with growth of 2.4 percent due to demand from Apple, followed by analog and nonoptical sensors with 1.9 percent and 1.6 percent growth, respectively. Memory, the most volatile segment of the semiconductor industry, saw revenue decline by 0.6 percent, with DRAM experiencing negative growth and NAND flash experiencing growth."


Intel remained the number one chip company despite a revenue decline due to weakness in PC shipments. Samsung’s memory business helped drive growth of 11.8 percent in 2015, and the company maintained the No. 2 spot with 11.6 percent market share.

The DRAM market was hit by a downturn in 2015 due to oversupply caused by weak PC demand. NAND market was able to record revenue growth of 4.1 percent in 2015 although the strength of the market deteriorated throughout the year.

Related links and articles:

www.gartner.com

News articles:

Gartner reduces chip market forecast, again

Gartner lowers 2015 chip market growth forecast

Chip market grew 7.9 percent in 2014, says Gartner


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