Global semiconductor revenue hits $299.4 billion in 2010
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Global semiconductor revenue hits $299.4 billion in 2010

By SiliconIndia   |   Thursday, 28 April 2011, 08:40 Hrs
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Stamford: Reporting the largest ever one-year increase, total worldwide semiconductor revenue reached $299.4 billion in 2010, an increase of $70.7 billion, or 30.9 percent from 2009, reveals a new Gartner report. However, the industry just fell short of the milestone $300 billion revenue threshold.

The top 25 semiconductor suppliers accounted for 69.1 percent of semiconductor industry revenue in 2010, and as a group, memory vendors showed the strongest growth.

Intel held the No. 1 position for the 19th consecutive year, with 14 percent share, down from 14.6 percent in 2009. Intel gained market share in some markets, but it lost ground in the total market, mainly at the hands of commodity memory vendors. Due to exposure to the booming DRAM and NAND flash markets, Samsung Electronics enjoyed a strong growth and came at the second position with 9.4 percent of the market share. Memory accounted for about 80 percent of the company's sales in 2010. Third-placed Toshiba's semiconductor revenue grew 28.7 percent in 2010 and has 4.1 percent of market share.

Speaking on the increased demand, Peter Middleton, Principal Analyst at Gartner, said "The industry-wide upturn was due to the combination of pent-up demand that had built in the wake of the worldwide economic recession, and rebuilding of semiconductor inventories that were significantly depleted during the recession and early recovery. The market began to surge in the second half of 2009, as demand recovery in a variety of market sectors resulted in strong order rates. This continued, almost frantically, during the first half of 2010 as demand soared, prices rose, and we saw lead times expanding significantly."

According to Gartner's relative industry performance (RIP) index, several of the top 25 vendors performed significantly better than expected. The four vendors that grew better than 10 percent beyond expectations were Broadcom, Marvell, Samsung Electronics and NXP. In contrast, four vendors missed expectations by more than 10 percent are Rohm, Renesas Electronics, Nvidia and MediaTek.

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