Thursday, April 13, 2006

Semiconductor Market Share Results Show Industry Grew 5.7 Percent in 2005

Gartner: Worldwide Semiconductor Revenue Driven by Demand in PCs, Cellular Handsets and Music Players Worldwide semiconductor revenue totaled $235 billion in 2005, a 5.7 percent increase from 2004 to final results by Gartner, Inc. 2005 revenue surpassed the semiconductor industry's previous record of $223 billion set in 2000. Personal computers and cellular telephones remain the largest drivers for semiconductor business. The popularity of MP3 players, however, accounted for dramatic growth among flash memory vendors in 2005. High PC demand helped Intel retain its position as the No. 1 semiconductor supplier in 2005. Intel's revenue grew 12.6 percent, twice the market average (see Table 1). Commodity memory demand bolstered the fortunes of Samsung Electronics, who now dominates most areas of the memory market, and Hynix Semiconductor, who moved into the top 10 for the first time in 2005. Samsung held the No. 1 position in DRAM, SRAM and the fast-growing NAND flash market in 2005. Hynix's NAND flash revenue reached $1.5 billion, up from $212 million in 2004, an increase of more than 600 percent. Over all, this company grew 23 percent - the fastest growth among the top 10 semiconductor suppliers. Table 1 Top 10 worldwide Semiconductor Vendors by Revenue (Millions of U.S. Dollars)

2005 Rank

2004 Rank

Company

2005 Revenue

2005 Market Share (%)

2004 Revenue

2004 -2005 Growth (%)

1

1

Intel

34,590

14.7

30,730

12.6

2

2

Samsung Electronics

18,347

7.8

16,276

12.7

3

3

Texas Instruments

10,119

4.3

9,170

10.3

4

7

Toshiba

8,984

3.8

8,538

5.2

5

6

STMicrolectronics

8,821

3.8

8,691

1.5

6

4

Renesas Technology

8,291

3.5

9,001

-7.9

7

5

Infineon Technologies

8,205

3.5

8,945

-8.3

8

9

Philips Electronics

5,959

2.5

5,689

4.7

9

12

Hynix Semiconductor

5,723

2.4

4,648

23.1

10

8

NEC Electronics

5,657

2.4

6,438

-12.1

Others

119,939

51.1

113,891

5.6

Total Market

234,635

100.0

222,017

5.7

Source: Gartner Dataquest (April 2006) The entire NAND flash memory segment grew 71 percent between 2004 and 2005. Other fast growth markets included CMOS image sensors (28 percent), and consumer ASICs (14 percent). The wireless ASIC segment, where Texas Instruments was the market leader, grew 9 percent last year. The regional trend of sales moving towards Asia/Pacific continued in 2005. The Asia/Pacific region, which includes China, Taiwan, Korea and Singapore, accounted for 44.5 percent of worldwide semiconductor revenue, and the region experienced the strongest growth in 2005 - 11 percent. The Europe, Middle East and Africa (EMEA) region saw the next strongest revenue growth with 4 percent. The Americas had 1 percent growth in 2005 and Japan was flat with revenue increasing 0.2 percent. Semiconductor Revenue, worldwide, 2005. Publ 20060413