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02/04/2018

Global Semiconductor Industry Noted Highest Growth In 14 Years; Revenues Of $429 Billion In 2017




Global Semiconductor Industry Noted Highest Growth In 14 Years; Revenues Of $429 Billion In 2017
The highest ever year-on-year growth for the global semiconductor industry in the last 14 years was noted by it in 2017. 
 
Market research firm in critical information, analytics and solutions, IHS Markit said that a growth rate of 21.7 per cent was reached by the revenues generated in 2017 by the global semiconductor industry with total revenues reaching $429.1 billion.
 
“The technology transition from planar 2D NAND to 3D NAND drove the market into an unbalanced supply-demand environment in 2017, driving prices higher throughout the year”, the report said.
 
Intel was over taken by Samsung in the race in the industry as the South Korean company recorded its highest semiconductor revenue ever and a year-on-year growth of 53.6 per cent. In 2017 the South Korean company became the global leader in the industry. placed in third position behind Intel was SK Hynix.
 
“2017 was quite a memorable year,” said Shaun Teevens, semiconductor supply chain analyst at HIS Markit. “Alongside record industry growth, Intel, which had led the market for 25 years, was supplanted by Samsung as the leading semiconductor supplier in the world.”
 
With year-on-year revenue growth of 81.2 percent and 79.7 percent, the two fastest growing companies in the global semiconductor industry were SK Hynix and Micron respectively within the top 20 semiconductor suppliers.
 
“A very favorable memory market with strong demand and high prices was mainly responsible for the strong growth of these companies,” Teevens said.
 
In 2017, the top fabless company was Qualcomm and was flowed closely by nVidia which moved up the ladder to second position with a growth rate of 42.3 per cent compared to the year before. The highest gains in terms of market share among the top 20 fabless companies was MLS as it gained 5 places to move up from 20 last year to 15 on the list prepared by IHS Markit on the basis of revenue generated.
 
There was growth of 60.8 per cent in 2017 in the segment of memory integrated circuits compared to the year before and this segment proved to be the strongest within the semiconductor industry. And within the memory integrated circuits segment, the highest growth rate in the last 10 years was recorded by two sub categories - DRAM with growth rate of 76.7 per cent and NAND with growth of 46.6 per cent. Enhanced demand for memory chips and higher prices in the face to tight supply was the driver of much of the revenue increase.
 
“The technology transition from planar 2D NAND to 3D NAND drove the market into an unbalanced supply-demand environment in 2017, driving prices higher throughout the year,” said Craig Stice, senior director, memory storage, HIS Markit. “Entering 2018, the 3D NAND transition is now almost three-quarters of the total bit percent of production, and it is projected to provide supply relief for the strong demand coming from the SSD and mobile markets. Prices are expected to begin to decline aggressively, but 2018 could still be a record revenue year for the NAND market.”
 
(Source:www.businesswire.com)

Christopher J. Mitchell

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