Samsung catching Intel fast in top 20 chip vendor ranking
One result is that memory manufacturers Samsung, Micron Technologies and SK-Hynix have all increased sales faster than the market average and second-placed Samsung has continued to catch up with market leader Intel.
Intel grew to prominence on the back of its dominance in the supply of processors for personal computers. It is still number one with $50 billion of chip sales predicted for 2014 or 14.1 percent of the total market. Intel will grow its sales by 6 percent helped by the return of some life to the personal computer market after an extended hiatus during 2012 and 2013.
Preliminary worldwide ranking of the top 20 semiconductor suppliers in 2014 ranked by sales (in millions of dollars). Source: IHS Technology. *MediaTek growth boosted by acquisition of MStar. Avago’s growth boosted by acquisition of LSI and PLX. To see a larger version of the ranking table click here.
But Samsung’s position in application processors for mobile equipment and memory will allow it to increase sales by 15.6 percent and get to just over $38 billion in annual sales for 2014. Samsung may not yet be in touching distance of Intel but a three more years at these rates and it will overhaul the long-time number one.
Fabless chip company Qualcomm will benefit in 2014 from its role as a dominant supplier of application processors into mobile phones with 11.9 percent projected annual growth.
There are no changes in the top 10 ranking from 2013 except for the arrival of Mediatek, up from 15th, which is partly due to its acquisition of MStar. Avago Technologies leapt into the top 20, at 15 up from 23, due to its acquisition of LSI Corp. and PLX Technologies.
However, as and when Infineon’s proposed acquisition of International Rectifier takes place it would move Infineon back into the top 10 by the combination of the two companies’ sales revenue.
Next: Growth by product category, market sector
The 9.4 percent expansion in 2014 is broad-based across multiple segments and is set to be the strongest industry performance since 2010. Global revenue in 2014 is expected to total $353.2 billion, up from $322.8 billion in 2013, according to the preliminary estimate from IHS Technology.
"This is the healthiest the semiconductor business has been in many years, not only in light of the overall growth, but also because of the broad-based nature of the market expansion," said Dale Ford, chief analyst at IHS Technology. “While the upswing in 2013 was almost entirely driven by growth in a few specific memory segments, the rise in 2014 is built on a widespread increase in demand for a variety of different types of chips."
In 2013 the key drivers of the growth of the semiconductor market were DRAMs and data flash memory. These two memory segments together grew by more than 30 percent while the rest of the market only expanded by 1.5 percent. In 2104, the combined revenue for DRAM and data flash memory is projected to rise by about 20 percent, while the rest of the market will swell by 6.7 percent.
DRAM revenue is expected to climb by 33 percent for the second year in a row in 2014. The LED market is expected to grow by more than 11 percent in 2014. Major turnarounds are occurring in the analog, discrete and microprocessor markets as they will swing from declines to strong growth. Most segments will see their growth improve by more than 10 percent, compared to the declines experienced in 2013. PLD revenue in 2014 will grow by 10.2 percent compared to 2.1 percent in 2013, and DSP ASICs will rise by 3.8 percent compared to a 31.9 percent collapse in 2013.
Semiconductor revenue in 2014 will grow in five of the six major semiconductor application end markets, i.e. data processing, wired communications, wireless communications, automotive electronics and industrial electronics. The only market segment experiencing a decline will be consumer electronics. Revenue will expand by double-digit percentages in four of the six markets.
Japan continues to struggle, and is the only worldwide region that will see a decline in semiconductor revenues this year. The other three geographies – Asia-Pacific, the Americas and the Europe, Middle East and Africa (EMEA) region – will see healthy growth. The world will be led by led by Asia-Pacific, which will post an expected revenue increase of 12.5 percent.
Related links and articles:
News articles:
Europe falls in top 20 chip company ranking for 1H14
Gartner: Qualcomm, Micron rise in 2013 chip market
IHS: Big moves in chip vendor top 20 ranking
If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :
