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Top ten chip companies underform the semi industry - iSuppli

Wednesday 11 March 2009 01:44

Eight out of the Top Ten semiconductor suppliers not only saw revenues decline last year, they also under-performed the market, according to iSuppli.

"Many of these suppliers are focused on semiconductor segments that performed poorly during the year, including memory, Digital Signal Processors (DSPs), analog Integrated Circuits (ICs) and standard logic. This caused 80 percent of the Top-10 and 60 percent of the Top-25 semiconductor suppliers to experience declining revenues compared to 2007," said Dale Ford, senior vice president at iSuppli.

Among the Top 25 suppliers, the companies increasing revenues were No 5 ranked STMicroelectronics, No 8 Qualcomm, No. 11 NEC, No14 Broadcom, No.15 Panasonic, No.18 Sharp, No.20 Rohm, No. 22 Marvell, No.23 MediaTek. and No 24 Fujitsu.

However, not all these achieved their growth through organic sales increases. "The growth achieved by STMicroelectronics, Broadcom, Rohm and MediaTek in 2008 was enabled or enhanced by major acquisitions during the year, rather than by increasing sales in their existing product lines," said Ford.

"The remaining six-Qualcomm, NEC, Panasonic, Sharp, Marvell and Fujitsu-expanded their revenues by between 1.5 per cent and 15.3 per cent in 2008 based only on organic growth."

For NEC, Panasonic, Sharp and Fujitsu Microelectronics, most of the growth came from the declining dollar.

Six of the Top Ten underperformed the overall semiconductor industry in 2008: No 2 Samsung, No. 3 Toshiba, No.4 TI, No.6 Renesas, No.7 Sony, and No.9 Hynix., all of which had revenue declines greater than the 5.2 per cent for the overall semiconductor market.

Hynix posted the largest revenue decline among the Top-10 and Top-25, at 33.4 per cent.

The next biggest decline was posted by NXP Semiconductors, at 29.4 per cent, due to the spin off of its wireless chip business. The next biggest decliners were Samsung, Sony and Renesas.

In Q408, industry revenues declined 21.5 per cent, said iSuppli, with the deepest falls in

DSPs, NOR flash, and application-specific analog ICs, where revenues fell by between 25 to 28 per cent. Other big decliners were: DRAM, NAND Flash, Display Drivers and Standard Logic ICs.

Star performers were Qualcomm, which moved into the Top Ten rankings, rising to eighth place in 2008, up from 13th in 2007 Broadcom which jumped to No 14, up from No.19 Rohm at No.20 and MediaTek at No.23.

Optical components, standard linear ICs, programmable logic devices, microprocessors and sensors/actuators were the only major semiconductor market segments to achieve growth, with their revenues increasing between 1 and 6 per cent. Wired communications and industrial electronics were the only end-market segments to see increased revenues for 2008 with growth between 2 and 3 per cent for the full year.

Fabless suppliers, with growth of 1.4 per cent in 2008, out-performed the overall semiconductor market and led the growth among the Top 25 semiconductor suppliers in 2008.

Qualcomm, Broadcom, Marvell and MediaTek each grew their revenues between 10.2 per cent and 23.9 per cent in 2008. Out of the five fabless companies in the Top25 rankings, only nVidia saw its revenues decline in 2008.

Top 25 Semiconductor Suppliers 2008

  • Intel 34
  • Samsung 17
  • Toshiba 11
  • TI 11
  • ST 10
  • Renesas 7
  • Sony 7
  • Qualcomm 6
  • Hynix 6
  • Infineon 6
  • NEC 6
  • AMD 5.4
  • Freescale 5
  • Broadcom 4.6
  • Panasonic 4.5
  • Micron 4.4
  • NXP 4
  • Sharp 3.7
  • Elpida 3.6
  • Rohm 3.3
  • nVidia 3.2
  • Marvell Technology Group 3
  • MediaTek 2.9
  • Fujitsu Microelectronics 2.7
  • Analog Devices 2.5

See also: Mannerisms, the blog of David Manners. Updated twice daily, it's the distinctive, entertaining, authoritative and never dull commentary on the semiconductor industry, from someone who knows. Sign up for the Mannerisms eNewsletter.

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