Semiconductor vendor ranking in 2010;
the movers and shakers as per IHS iSuppli
Samsung is racing to take top spot in electronics and semiconductor
domain. As per the newly released semiconductor ranking
by IHS iSuppli for 2010, the No. 2-ranked Samsung held 9.2
percent share of global chip revenue, up from 7.6 percent
in 2009. This put the South Korean electronics giant a mere
4.1 percentage points behind perennial market leader Intel
of the United States, says IHS iSuppli.
"The rise of Samsung is one of the biggest stories
of the last decade in the worldwide semiconductor market,"
said IHS analyst Dale Ford. "When experts discuss competition
for Intel, they almost always focus on Advanced Micro Devices
Inc. (AMD). While it is true that AMD is Intel's major competitor
in the microprocessing unit (MPU) market, Samsung is the
primary rival of Intel for overall semiconductor market
share. And although they are mainly indirect competitors
in the marketplace, Intel and Samsung have been ranked No.
1 and No. 2, respectively, for a number of years."
IHS iSuppli findings and observations on semiconductor
vendor ranking in 2010 include:
In 2001 Intel's market share at 14.9 percent was more than
three times that of Samsung at 3.9 percent; Samsung ranked
fifth then. Since that time, Intel's market share has ranged
between 11.9 percent and 14.8 percent. Meanwhile, Samsung
has seen its revenues grow by 355 percent from 2001 to 2010,
allowing the company to expand market share and raise its
Samsung's strong performance in 2010 was driven by booming
sales of its main semiconductor product: memory integrated
circuits (ICs). Among the major semiconductor categories,
memory ICs had the strongest growth at 52.4 percent. In
comparison, the next fastest-rising area was sensors and
actuators at 35.5 percent, followed by discretes at 34.5
The biggest growth driver in the memory segment in 2010
was dynamic random access memory (DRAM), which enjoyed 75.0
percent expansion. The other major segment of the memory
market, NAND flash, grew 38.6 percent for the year.
For Samsung, given its position as the world's leading
supplier of DRAM and NAND, the company's 59.1 percent rise
in semiconductor revenue during 2010 meant it massively
outperformed the overall semiconductor industry. Worldwide
semiconductor revenue amounted to $304.1 billion in 2010,
up 32.1 percent from $230.2 billion in 2009, according to
the final IHS iSuppli 2010 semiconductor revenue ranking.
U.S.-based Micron Technology, Hynix Semiconductor of South
Korea and Japan's Elpida Memory expanded their share of
the total market by 1.1 percent, 0.7 percent and 0.4 percent,
respectively. For Micron, the combination of strong memory
market growth and its acquisition of Numonyx propelled Micron
up five places into the Top 10 to No. 8. For their part,
Hynix and Elpida achieved revenue expansion of 66.2 percent
63.3 percent, respectively-the largest increase among Top
20 semiconductor companies based entirely on organic growth.
As a result, Elpida jumped up four spots in ranking from
No. 15 in 2009 to No. 11 in 2010, while Hynix advanced one
place to No. 6.
Renesas Electronics Corp. went up in the rankings from
No. 9 in 2009 to No. 5 in 2010 by virtue of the merger between
Renesas Technology and NEC Electronics. The two companies,
which had combined revenues in 2009 of $9.5 billion, grew
24.7 percent, less than the overall market, to $11.9 billion
The 3.9 percent market share in 2010 of Renesas Electronics
Corp. is still lower than the 4.3 percent market share of
Renesas Technology, formed in 2003 by the merger of Hitachi
Semiconductor and Mitsubishi Semiconductor. Renesas Technology
had seen its overall market share fall to 2.2 percent in
2009, but the most recent merger now boosts the merged entity
back up close to the company's original share and into the
Top 5 rankings.
A combination of impressive business execution and participation
in strong market segments enabled Maxim Integrated Products,
Marvell Technology Group, Elpida Memory, Broadcom Corp.
and Xilinx Inc. to make the biggest strides in the Top 25
market rankings for 2010.
Maxim jumped six places to No. 24, followed by Marvell
climbing five places to No. 18. The rest moved up four places,
with Broadcom moving into the Top 10 for the first time.
All five companies, driven primarily by organic growth,
expanded their revenues between 36.0 percent and 63.3 percent
Other semiconductor suppliers achieving strong growth in
2010 without the boost of a major acquisition were Texas
Instruments with an increase of 34.4 percent, Analog Devices
with 36.9 percent, Infineon Technologies with 41.8 percent
and Panasonic Corp. with 52.5 percent. Infineon's revenue
for 2010 still includes the wireless business it sold to
Intel at the start of 2011.
NXP, which sold its set-top box business lines to Trident
Microsystems in 2010, also delivered a healthy performance
with 24.3 percent growth.
Suppliers among the Top 25 that struggled the most in 2010
were Taiwan-based MediaTek with flat revenue, Qualcomm with
growth of only 12.4 percent and nVidia with 13.1 percent
expansion. Qualcomm slipped from No. 6 to No. 9, and MediaTek
fell from 16th to 19th in the rankings. nVidia was able
to hang on to its No. 20 spot. AMD and Sony Corp. also fell
in the rankings by four positions each, as their overall
revenue growth significantly lagged market growth.
In a notable reversal from historical trends, fabless semiconductor
suppliers underperformed the overall semiconductor market.
Fabless semiconductor suppliers as a group achieved revenue
growth of only 26.0 percent in 2010. However, seven fabless
companies ranked among the Top 25 suppliers in 2010, up
from six in 2009. The seven included Qualcomm, Broadcom,
AMD, Marvell Technology Group, MediaTek, nVidia and Xilinx.