1H14 semiconductor sales increase by 10%

7th August 2014

IC Insights

Siobhan O'Gorman

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According to 'The McClean Report' published by IC Insights, semiconductor companies’ sales increased by 10% in 1H14 as compared to 1H13. This is 3% higher than the company's forecast for total worldwide semiconductor market growth this year. The top 20 worldwide semiconductor (IC and O S D—optoelectronic, sensor, and discrete) sales ranking for 1H14 includes nine suppliers headquartered in the U.S., three in Japan, three in Europe, two in South Korea, two in Taiwan and one in Singapore.

Two pure-play foundries (TSMC and GlobalFoundries) and six fabless companies are included within the ranking, with pure-play IC foundry UMC being replaced by Nvidia. It is interesting to note that the top four semiconductor suppliers all have different business models. Intel is essentially a pure-play IDM, Samsung a vertically integrated IC supplier, TSMC a pure-play foundry, and Qualcomm a fabless company.

There were a number of changes within the 1H14 top-20 semiconductor supplier ranking outside of the top six. Compared with 1H13, 12 of the 14 companies ranked 7th to 20th changed positions in 1H14.

As a result of its top-20 leading 38% 1H14 sales surge, MediaTek moved up one position in 1H14 as compared to 1H13 into 12th place. The company, which finalised its merger with MStar in Febraury 2014, is expected to reach sales of over $7bn this year.

Avago purchased LSI in May 2014. The combined annual semiconductor sales run-rate of the two companies is currently over $5bn. Last year Micron merged with Elpida, creating a 'giant' company, with Micron’s total sales this year on pace to be over $16bn.

It should be noted that the sales of Micron and Elpida, MediaTek and MStar, and Avago and LSI use the combined sales of the two companies for both 1H13 and 1H14, regardless of when the merger actually occurred. This was done in an attempt to make the company’s 1H14/1H13 sales growth rates more directly comparable and give a clearer picture of the merged company’s sizes going forward.

A ranking of the 2Q14 top 25 semiconductor suppliers and their expected sales for 3Q14 will be shown within IC Insights’ August update to 'The 2014 McClean Report'.