Driven by Memory Market, Worldwide Semiconductor Revenue Grew 13.4 % in 2018

- Advertisement -
- Advertisement -

Major memory vendors that performed strongly in 2018 include SK hynix -driven by DRAM, and Microchip Technology  due to its acquisition of Microsemi

The recent studies conducted by Gartner Inc.reveals that the semiconductor revenue reached $476.7 billion in 2018 globally with a 13.4 per cent increase from 2017.

- Advertisement -

Memory market contributed a 34.8 per cent of total semiconductor revenue, up from 31 per cent in 2017 clearly indicates that Memory emerged as the largest semiconductor category.

Andrew Norwood, vice president, analyst at Gartner commented that the largest semiconductor supplier, Samsung Electronics, increased its lead as the No. 1 vendor due to the booming DRAM market.He also predicted that 2019 will be a very different market from the previous two years. Memory has already entered a downturn, there is the looming trade war between the US and China, and mounting uncertainty about the global economy.

As per the survey,the combined revenue of the top 25 semiconductor vendors increased by 16.3 per cent during 2018 and accounted for 79.3 per cent of the market, outperforming the rest of the market, which saw a milder 3.6 per cent revenue increase. This is due to the concentration of the memory vendors in the top-25 ranking.

Top four vendors in 2017 retained their ranking in 2018

Intel’s semiconductor revenue grew by 12.2 per cent compared with 2017, driven by a combination of unit and average selling price (ASP) growth. Major memory vendors that performed strongly in 2018 include SK hynix driven by DRAM, and Microchip Technology  due to its acquisition of Microsemi.

The top four vendors in 2017 retained their ranking in 2018 (see the Table below).

Memory – highest-performing device category

In terms of semiconductor devices, memory was simultaneously the largest (35 per cent) and highest-performing device category for 2018 with 27.2 per cent revenue growth. This was driven by increases in ASP for DRAM for much of the year except for the fourth quarter of 2018.

The second-largest semiconductor category, application-specific-standard products, saw limited growth of 5.1 per cent due to a stalling smartphone and tablet market that continues to decline. Leading vendors in this segment including Qualcomm and MediaTek, are aggressively expanding into adjacent markets with stronger prospects for growth, including automotive and IoT applications.

Merger and acquisition

Merger and acquisition activity in 2018 was more significant for the deals that did not happen than the deals that did. Broadcom’s  takeover attempt of Qualcomm failed as the US government stepped in, and Qualcomm’s bid to secure NXP became embroiled in the ongoing trade war with China. Completed deals included Toshiba spinning off its NAND business into Toshiba Memory in June 2018 and Microchip’s May 2018 acquisition of Microsemi.

 

 

 

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Exclusive

XR Headset Quest 3, Meta

Global XR Headset Shipments See A Major Decline, Sony Rises

0
Sony grabbed a market share of 24% in 2023 up from 1% in 2022. Bulky form factor, and lag, hinder adoption by serious...

Indian PC Market Grows 4% In Q4 2023, Local Manufacturing Efforts Ramp Up

0
IT procurement by enterprises and SMBs, delayed in the first half of 2023, is starting to take place and is expected to accelerate...

“Efficiency In Solar Energy Is More About Investment Rationale Than Resource Limitation”

0
Indian utility-scale solar company SolarArise claims to offer investors long-term, cash-generating assets and anticipates advancements in energy storage technologies to enable 24-hour clean power...

Buzz

BYD Aims For 20% Increase In Yearly EV Sales

0
The company is targeting sales of 500,000 vehicles internationally this year, over twice the amount sold last year, and aims to increase that figure...

RRP Electronics To Invest ₹5000 Cr In OSAT and R&D In Maharashtra

0
Cricket legend Sachin Tendulkar is investing in this semiconductor facility. Such celebrated personalities investing in the sector could be a great asset to the...

Subsidy Cuts Push E2W Makers Towards Budget Models

0
Electric two-wheeler manufacturers face reduced government subsidies and growing competition from established petrol vehicle brands in the upcoming fiscal year. These challenges compel them...

Important Sectors

BYD Aims For 20% Increase In Yearly EV Sales

0
The company is targeting sales of 500,000 vehicles internationally this year, over twice the amount sold last year, and aims to increase that figure...

RRP Electronics To Invest ₹5000 Cr In OSAT and R&D In Maharashtra

0
Cricket legend Sachin Tendulkar is investing in this semiconductor facility. Such celebrated personalities investing in the sector could be a great asset to the...

Subsidy Cuts Push E2W Makers Towards Budget Models

0
Electric two-wheeler manufacturers face reduced government subsidies and growing competition from established petrol vehicle brands in the upcoming fiscal year. These challenges compel them...

Nissan To Invest In Renault’s Ampere For EV Roadmap

0
The alliance aims to introduce both five-seater and seven-seater models for each brand in India. Japan's Nissan Motor has committed to investing in Renault's electric...

TPEM And HPCL Team Up To Enhance EV Charging Infrastructure

0
The collaboration seeks to enhance the experience of electric vehicle owners in India and promote greater adoption of electric vehicles among the population. Tata Passenger...

Manufacturing

JLR To Hire 250 Electrical Technicians For Future EVs

0
These new roles, part of a £15 billion investment, are in addition to 300 positions created last year by the British car maker. Jaguar Land...

Altmin India Partners With WMG To Advance Battery Tech

0
Altmin and WMG will collaborate to strengthen their global battery materials supply chain position by optimizing cathode materials and developing diverse cell designs across...

EVs To Cost Less Than Gas Vehicles by 2027, Says Gartner

0
Gartner predicts a faster decline in production costs compared to battery costs, which represent the most significant expense in an electric vehicle, accounting for...
MG

MG Motor To Set Up Battery Assembly Unit At Halol Facility

0
The company plans to investigate battery cell production in collaboration with external partners. Automaker MG Motor India is actively exploring the possibility of assembling and...

Servotech Boosts India’s EV Charging Infrastructure With Manufacturing Facility

0
The new facility is poised to start with an annual production capacity of 24,000 power modules and plan to scale up to 2.4 lakh...