Chip revenues up 30 percent to $300 billion in 2010

The total market for semiconductors was just shy of $300 billion in 2010, notching up a 30.0 percent increase from 2009.

Intel was once again top at the market, which grew overall by $70.7 billion to $299.4 billion, recording a 19th consecutive year as the semi market’s dominant force, despite its share dropping from 14.6 to 14.0 percent. It did gain ground in certain areas.

Second placed Samsung saw a year of growth as a result of its performance in the DRAM and NAND flash markets, holding onto top spot in the DRAM market with a record high share according to Gartner’s newly released figures.

Meanwhile Toshiba kept third place as its revenue grew by 28.7 in 2010, as the firm grew its NAND flash memory business for mobile devices and its discrete and optical electronics device businesses.

However, a decline in the games console sector last year meant that revenues for application specific integrated circuits (ASICs) aimed at consumer devices were down, though  ASICS revenue from the communications and automotive sectors saw growth.

Tenth placed Broadcom enjoyed an impressive year, leapfrogging two places after gaining a 53 percent increase and pushing itself into the top ten for the first time due to good performances in the infrastructure and networking, broadband and mobile markets.

All in all the top 25 semi suppliers were responsible for 69.1 percent of the industry’s revenue last year, with memory vendors the best off.

It should be noted that large percentage increases in 2010 are likely to be as a consequence of the financial disaster that continued into 2009, and Gartner’s principal analyst Peter Middleton stated that the industry-wide upturn was attributable to a combination of “pent-up demand that had built in the wake of the worldwide economic recession, and rebuilding of semiconductor inventories that were significantly depleted during the recession and early recovery”.

Using Gartner’s relative industry performance system, the best performing companies were Broadcom, Marvell Samsung and NXP which all out-did their relevant markets by at least ten percent.

However Rohm, Renesas, Nvidia and MediaTek trailed market expectations by 10 percent.

Table 1
Top 10 Semiconductor Vendors by Revenue Estimates, 2010 (Millions of U.S. Dollars)

2010 Rank

  2009 Rank

Vendor

2009 Revenue  

2010 Revenue  

2009-2010 Growth (%)   

2010 Market Share (%)

1

1

Intel

33,429

41,988

25.6

14.0

2

2

Samsung Electronics   

17,749

28,097

58.3

9.4

3

3

Toshiba

9,604

12,360

28.7

4.1

4

4

Texas Instruments

9,142

11,878

29.9

4.0

5

5

STMicroelectronics

8,460

10,346

22.3

3.5

6

11

Renesas Electronics

4,542

10,204

124.7

3.4

7

7

Hynix Semiconductor

6,035

9,884

63.8

3.3

8

13

Micron Technology

4,170

8,224

97.2

2.7

9

6

Qualcomm

6,409

7,204

12.4

2.4

10

12

Broadcom

4,317

6,604

53.0

2.2

 

 

Others

124,815

152,574

22.2

51.0

 

 

Total Market

228,672

299,363

30.9

100.0