Electronics Production | July 24, 2007

Did TI regain the top spot in second quarter?

After relinquishing the top spot in the global wireless semiconductor market in the first quarter of 2007,
did Texas Instruments Inc. (TI) manage to regain its customary lead in the second quarter?
Qualcomm Inc. in the first quarter replaced TI as the world's top supplier of semiconductor for all types of wireless products—including mobile handsets—according to iSuppli Corp. This marks the first time that TI has not occupied the leadership position in this area since iSuppli began tracking handset market share in 2004.

Qualcomm bucked the seasonally slow market conditions in the first quarter to achieve a 2.4 percent increase in revenue generated by sales of wireless ICs. Company revenue in this segment rose to $1.26 billion during the first quarter, up from $1.23 billion in the fourth quarter of 2006. In contrast, the global market for wireless ICs declined by 5.5 percent during the period, falling to $6.97 billion, down from $7.37 billion in the fourth quarter.

Meanwhile, TI underperformed the market in the first quarter with a 7.1 percent decline in revenue. TI posted wireless semiconductor revenue of $1.15 billion in the first quarter, compared to $1.24 billion in the fourth quarter.

The attached table presents iSuppli's market-share ranking for mobile-phone ICs in the first quarter of 2007.

“Qualcomm took the top spot on the strength of healthy growth in EvDO and WCDMA baseband chips," said Francis Sideco, senior analyst, wireless communications, for iSuppli. “This achievement caps a sustained period of gains for Qualcomm. TI is likely to report improving business conditions in its second-quarter results. The company in its mid-quarter update said it was experiencing a rebound in orders.

iSuppli Table: World's Top-5 Suppliers of Wireless Semiconductors in the First Quarter of 2007 (Ranking by Revenue in Millions of U.S. Dollars)

Source: iSuppli Corp. July 2007


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