Semiconductor market decline reshuffles top 10 ranking
Following a record run, the semiconductor market has cooled down and consumer confidence has waned resulting in a historic drop. But how does this affect the ranking of the top 10 semiconductor companies?
As previously reported, the semiconductor market has had an exceptional run of sequential revenue growth. As pointed out by technology research and advisory group, Omdia, the semiconductor market experienced a record eight-straight quarters of revenue growth during the COVID-pandemic period that began in early 2020. The good times, however, appear to be over. For the past two quarters, the market has started to contract. Revenue from semiconductors in 3Q22 was USD 147 billion, down from USD 158 billion in the prior quarter.
But how does this affect the ranking of the top 10 semiconductor companies?
Looking at the revenue ranking of the top ten semiconductor companies, we see that the three memory-focused companies (Samsung Electronics, SK Hynix, and Micron Technology) all dropped one position between 2Q22 and 3Q22. While the main memory suppliers were the primary cause of the 3Q22 semiconductor revenue decline of nearly USD 10 billion, other businesses also had difficulties. As PC demand slowed and inventories were reduced, AMD saw a fall in revenues – the same market dynamics that affected Intel the prior quarter.
|2Q22 Rank||3Q22 Rank||Company||2Q22 Revenue (USD million)||3Q22 Revenue (USD million)||QoQ growth|
|7||8||Advanced Micro Devices (AMD)||6,491||5,503||-15.2%|
|Top 10 Companies||92,522||81,232||-12.2%|
Note: The revenue in Omdia's research refers to the semiconductor revenue only. Revenue for non-semiconductor products, such as software, licensing, royalties, and similar are not accounted for in this analysis. Additionally, foundry revenue is not accounted for either as foundry services are used for another company’s product.