Semiconductor manufacturers' revenue up by 5 per cent

Gurjit Degun
29 April 2014

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29 April 2014 | Gurjit Degun

The revenue of semiconductor manufacturers worldwide increased by 5 per cent last year, with memory chip makers accounting for $225.3 billion (£133.8 billion) of the total.

According to research from IHS Technology, total revenue for the semiconductor sector in 2013 reached $318.1 billion (£188.9 billion), up from $303.1 billion (£180 billion) in 2012. Total revenue was $310.6 billion (£183.4 billion) in 2011.

IHS said the top 25 chip makers’ combined revenue came to $225.3 billion (£133.8 billion) - 71 per cent of total industry takings, up from 69 per cent in 2012. Topping the list last year was Intel with $47 billion (£27.9 billion), representing 15 per cent of the market.

The report also found suppliers based in Asia-Pacific saw their combined revenue grow 14.7 percent, allowing them to capture 25.3 percent of the chip market - the largest ever share for the region.

For companies based in the Americas, collective revenue grew by 8.7 per cent, translating into 52.4 per cent of total industry takings. But Japan "continues to be mired in a slump” as chip revenue for the area declined 17.9 percent.

Dale Ford, vice president at IHS Technology, said: “Dynamic random access memory (DRAM) showed the strongest expansion among major memory segments, with revenue surging by 32.5 per cent as suppliers were able to achieve a balance between supply and demand that yielded lucrative pricing for parts. NAND flash also posted a strong year - at 24.2 per cent growth - as demand for the memory from smartphones and tablets continued to rise.”

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