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Global semiconductor market hit hard in 2009: IDC

Anuradha Shukla | May 10, 2010
Revenues decreased nine per cent to US$225 billion last year

FRAMINGHAM, MASSACHUSETTS, US, 7 MAY 2010 The global semiconductor industry was hit especially hard in the first half of 2009 due to the global economic downturn, according to a study by IDC.

The research firm says revenues decreased nine per cent year over year in 2009 to US$225.1 billion. But it was not all bad news because some established companies reported gains in revenues and market share compared to 2008. This growth is attributed to an increase in chip demand in the second half of 2009.

Market ruled by lntel

The semiconductor market was led by Intel that experienced revenues of US$33.8 billion in 2009 and also succeeded in increasing its share of the semiconductor market by about one per cent to 15.2 per cent.

The second place in the market is occupied by Samsung that reported a semiconductor revenue increase of about 6.7 per cent over 2008. According to IDC, the following top five chip suppliers maintained about 34.3 per cent of the market in 2009: Intel, Samsung, Texas Instruments, Toshiba and Qualcomm.

Atheros, Cavium, Mediatek, NetLogic, Synaptics and Richtek were a few of the companies that saw revenues go up in 2009. All these enterprises experienced double digit year-over-year growth in 2009.

Asia Pacific leading market in 2009

In addition to semiconductor market, DRAM memory markets also saw a good time in the second half of 2009, and this meant growth in revenues for companies such as Samsung, Hynix, Elpida, Micron, and Nanya Technology.

IDC's report indicates an increase in NAND demand in the second half of 2009 and this jump helped NAND suppliers such as Toshiba, Samsung, and Micron.

The study was led by Mali Venkatesan, research manager at IDC, who also compiled the Semiconductor Market Share market and company view. Venkatesan said this increase has not come as a surprise because demand for wireless products, intelligent networks, embedded processors, and touch-based user interfaces increased tremendously in the second half of 2009.


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