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Worldwide Semicon revenue to touch $300 bn by 2010

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CIOL Bureau
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BANGALORE, INDIA: Worldwide semiconductor revenue is expected to go up this year, with Intel gaining ground in semiconductor market share, says Gartner, an IT advisory and research firm.

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The worldwide revenue is expected to reach a landmark $300.3 billion in 2010, up 31.5 per cent from 2009.

The semiconductor market rebounded after the worldwide recession hurt chip revenue in 2009, when year-over-year revenue declined by 10 per cent.

As the economy stabilized this year, semiconductors manufacturers quickly added capacity to meet the growing demand of parts from system makers. But semiconductor demand started weakening again starting in the third quarter this year, Gartner said.

Despite the late-year slowdown, this year will go down as a "banner year" for the semiconductor industry, said Stephan Ohr, semiconductor research director at Gartner, in a statement.  Yearly semiconductor revenue worldwide has grown by more 30 per cent only in 1988, 1995 and 2000, Ohr added.

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The top semiconductor company was Intel, which received a boost from a surge in PC sales during the first two quarters of the year. Intel's semiconductor revenue was $41.34 billion, growing 24.6 per cent, with a 13.8 per cent market share. Intel held a 14.2 per cent market share the previous year.

Overall market revenue this year was hurt by poor sales of netbooks, Gartner said. Most of the netbooks ship today with Atom chips from Intel.

Samsung, in second place, closed in on Intel by gaining market share. Samsung's revenue was $28.26 billion, growing by 59.8 per cent, with a 9.4 per cent market share. Samsung's revenue growth was partly driven by the strong DRAM and NAND flash markets, and memory accounted for 80 per cent of the company's sales, Gartner said.

Other major semiconductor companies saw positive revenue growth this year. In third place was Toshiba, whose revenue totaled $12.38 billion, growing 28.9 per cent. In close fourth was Texas Instruments, whose revenue was $12.36 billion, growing by 35.2 per cent year-over-year.

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