© head off dreamstime.com Analysis | March 30, 2017
List: Intel, Samsung, Qualcomm ...
The worldwide semiconductor market showed signs of recovery in 2016 following a down year in 2015. In 2016, the market posted a year-end growth rate of 2 percent with chip growth seen across multiple market segments.
Global revenue came in at USD 352.4 billion, up from USD 345.6 billion in 2015, writes market analyst IHS Markit. Key drivers of this growth were DRAM and NAND flash memory, which grew more than 30 percent collectively in the second half of 2016. Key to this turnaround was supply constraints and strong demand, coupled with an ASP increase. The researchers expect these factors to drive memory revenue into record territory throughout 2017. Semiconductors used for automotive applications were also a key driver of 2016 growth, with a 9.7 percent expansion by year-end. Chip content in cars continues to climb, with micro components and memory integrated circuits (IC) leading the pack, both experiencing over 10 percent growth in automotive applications. “The strong component demand that drove record capital expenditures in 2016 also provided the industry with advanced technology platforms which will support further semiconductor revenue growth in 2017,” said Len Jelinek, Senior Director and Chief Analyst for Semiconductor Manufacturing at IHS Markit. Continuing a recent trend, the semiconductor market saw another year of intense consolidation with no signs of slowing down. The year began with the close of the biggest-ever acquisition in the semiconductor industry. Avago Technologies finalized its USD 37 billion acquisition of Broadcom Corp. to form Broadcom Limited, which jumped to rank fourth in terms of market share (Avago previously ranked 11th). This acquisition resulted in the newly formed company increasing its market share in several market segments, including taking a large lead in the wired application market. Top semiconductor companies in 2016 (USD billion)
Note: Broadcom Limited is the combination of Broadcom Corp. and Avago Technologies
More can be found at IHS/Markit.
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