Global semiconductor market decreased 9 percent in 2009
By siliconindia   |   Tuesday, 04 May 2010, 21:20 IST   |    1 Comments
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Framingham: Worldwide semiconductor revenues decreased nine percent year over year in 2009 to $225.1 billion, according to a new study by International Data Corporation (IDC). The industry was hit especially hard in the first half of 2009 due to the global economic downturn. Despite the economic recession, industry leaders held strong and some even eked out gains in revenues and market share compared to 2008, thanks to a sharp snapback in chip demand in the latter half of 2009. Intel, with total semiconductor revenues of $33.8 billion in 2009, once again was the market leader. It also increased its share of the semiconductor market by about one percent to 15.2 percent. Samsung coming in second saw its semiconductor revenues increase by about 6.7 percent over 2008. For the year, the top five chip suppliers were Intel, Samsung, Texas Instruments, Toshiba, and Qualcomm. Together, these five suppliers maintained about 34.3 percent of the market. While many companies saw revenue declines in 2009, there were several that were able to grow the top line in 2009. Among them were Atheros, Cavium, Mediatek, NetLogic, Synaptics, and Richtek, which all enjoyed double digit year-over-year growth in 2009. DRAM memory markets also partially bounced back in the second half of 2009, resulting in revenue growth for Samsung, Hynix, Elpida, Micron, and Nanya Technology. Similarly, increased NAND demand in the second half of 2009 helped NAND suppliers such as Toshiba, Samsung, and Micron. "This is not a surprise, as demand for wireless products, intelligent networks, embedded processors, and touch-based user interfaces increased tremendously in the second half of 2009," said Mali Venkatesan, Research Manager at IDC, who led the study and compiled the Semiconductor Market Share market and company view. "Overall, the semiconductor market in 2009 started with doom and gloom, but ended up with optimism for a strong recovery in 2010," added Venkatesan. "So far, 2010 is already proving to be very strong. Semiconductor inventory checks indicate strong demand in the first half of 2010 with order rates expected to normalize in the second half of the year. Assuming there are no macroeconomic shocks to global economy, IDC expects 2010 to be a banner year, with 16-18 percent year-over-year semiconductor revenue growth. The big question now is: What will be the market outlook in 2011?" Semiconductor Market Share market and company view, delivered in pivot table format, includes semiconductor revenue data from about 100 semiconductor suppliers, segmented by over 20 device types, four geographic regions, and six vertical markets and presents data for prior three years. The companies selected cover over 90 percent of the semiconductor market and over 85 percent of supplier revenues for each device type.

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