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Global semiconductor revenue down 2.3%, Intel retains top position: Gartner

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Global semiconductor revenue down 2.3%, Intel retains top position: Gartner

According to a report released by Gartner, the worldwide semiconductor revenue declined 2.3% to $334.8 billion last year. The slow demand for key applications and currency fluctuations are the reasons cited for this decline.

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The report further stated that the combined revenue of the top 25 semiconductor vendors fell by 0.5% in 2015. The top 25 semiconductor vendors together accounted for 73.5% of the market, it added.

Among the vendors, Intel remains to be the top player in the segment for the 24th consecutive year, owning 15% of the worldwide market. However, the firm has experienced a 1.2% decline in 2015. Samsung Electronics holds the second position with a market share of 11.3% in 2015. SK Hynix secured the third position with a market share of 4.9%.

Qualcomm lost its third position and reached fourth spot at 4.8% market share. To name a vendor that showed significant improvement, Infineon Technologies registered the strongest growth and moved from #12 in 2014 to #9 rank in 2015.

Micron technology, Texas Instruments, Toshiba, Broadcom, and STMicroelectronics are the other players that come in top 10 list.

Gartner further noted the recent trends of mergers and acquisition in the semiconductor market in its report. According to it, there were several acquisitions and disposals that had a material effect on semiconductor sales. Intel’s acquisition of Lantiq was the most significant deal and that doubled Intel’s wired ASSP business, stated the report.

“2015 semiconductor revenue results are skewed by the large amount of M&A activity during the year,” said Mr. Andrew Norwood, research vice president at Gartner. “If we adjust for this M&A activity by adding in revenue for 2015 and 2014 where necessary, then the performance is somewhat different: The top 25 vendors would have experienced a 1.7 percent revenue decline, and the rest of the market would have declined 3.9 percent.”

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Ria Lakshman. V is a lead news writer at The Telecom Times. She studied Journalism at Manipal School of Communication and proceeded to work in newspapers and magazines, with technology as her focus area. Passionate about Telecommunications sector, her move to 'The Telecom Times' was a natural choice. Alongside, she also writes for Telecom Talk, where she covers news and tech commentaries in the sector of telecom. In the free time, Ria loves to go camping, read books, or sketch illustrations. She also runs a local design studio and promotes eco-friendly crafts. Ria can be found sharing her knowledge and insights on Twitter.

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