Global chip sales dropped 33% in 2001: Gartner

SAN JOSE, Calif.: Global sales of semiconductors dropped by 33 per cent in

2001, the sharpest decline in the history of the industry and one that sets the

stage for a further shakeout among major vendors next year, according to a study

released on Wednesday.

Dataquest, Inc., a unit of Gartner, Inc., said that based on preliminary

statistics, all of the 10 largest chip vendors had seen double-digit percentage

declines in revenue in the past year as total sales fell to $152 billion in 2001

from $227 billion in 2000.

"As is evident in the sizable declines by most of the top vendors, the

industry has undergone tremendous destabilization," said Mary Olsson, chief

semiconductor analyst for Gartner Dataquest in a statement. "We expect

further consolidation for the industry during 2002."

Intel Corp. had an estimated $23.5 billion in sales in 2001, making it the

No. 1 vendor again with a market share that increased amid the downturn to 15.5

per cent and was larger than its three largest rivals combined, the study

showed.

Intel's sales were down an estimated 22 per cent in the year, a better

performance than any of the largest chip vendors except STMicroelectronics,

Europe's largest chip-maker.

ST took market share as its sales fell just 19 per cent to $6.4 billion, a strong enough showing to make it No. 3 chip maker globally in 2001 after having ranked as just the sixth largest a year earlier, the study said.

Toshiba Corp, which announced a deal to sell its memory chip business to

Micron Technology, Inc. on Tuesday, was the No. 2 chip maker in 2001 with $7.1

billion in sales, the study said.

The other top-ranked vendors by revenue, according to Dataquest: Samsung

Electronics, the market leader in DRAM chips, which was No. 4 overall with $6.3

billion in sales; Texas Instruments, No. 5 with $6 billion in sales; NEC Corp,

No. 6 with $5.4 billion; and Motorola Inc, with $5 billion in sales.

(C)Reuters Limited.