Gartner: Worldwide Semiconductor Revenue Increased 4% in 2007
April 3, 2008 // Published as a news service by IHS
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Worldwide semiconductor revenue totaled $273.9 billion in 2007, a 3.8% increase from 2006, according to final results from Gartner Inc.
Vendor performances were mixed with three vendors in the top 10 that experienced double-digit growth and four vendors that showed declines in revenue.
"With fears of recession high, semiconductor vendors need to move beyond tracking the performance of their end customers and markets, and track end-users' spending patterns to pick up early warning signs of slowing demand or increased opportunities," said Richard Gordon, managing vice president at Gartner.
"Periods of uncertainty, like the current one, often create ideal situations to strengthen product and application portfolios without paying inflated prices," Gordon said.
Intel grew revenue more than twice as fast as the semiconductor market average, with growth primarily coming from strong shipments of microprocessors for mobile PCs.
Samsung came in at second place, followed by Toshiba, where revenue increased 20.8% in 2007 to $11,820 million, moving Toshiba from sixth place in 2006 into third place for 2007.
The gains came from consumer application-specific integrated circuits (ASICs) for the Sony PlayStation3 (PS3) video game console, Not AND (NAND) flash and complementary metal-oxide semiconductor (CMOS) image sensors for mobile phones. The company saw continued growth in dynamic random access memory (DRAM), according to Gartner.
In terms of absolute revenue shifts, the largest drop was in DRAM, which saw a decline of $2.4 billion in revenue caused by sharp price declines as a result of oversupply, Gartner said.
Hynix Semiconductor achieved the best routing information protocol (RIP) ranking and has been placed in the top performing companies in the Gartner RIP ranking for the last three years. In 2007, DRAM drove the revenue growth as Hynix's DRAM revenue increased 19.1% compared with overall DRAM revenue, which declined by 7.1%.
For more information, go to http://www.gartner.com/DisplayDocument?ref=g_search&id=448010&subref=simplesearch.
Source: Gartner Inc.