Home
  Press Releases
  Contact Media Relations

  Media Registration

  Events
  Create Alerts
 
  Attribution Guide
  Corporate Information

  About Gartner
  Management Team
  Guiding Principles
 
  Investor Information
  Fast Facts
 
  Quick Statistics
  Top 10 Research
  Events Calendar
  gartner.com
  Gartner Books
 
PRESS RELEASES
2006 Press Releases


 Back to 2006 Press Releases

Worldwide Semiconductor Revenue Driven by Demand in PCs, Cellular Handsets and Music Players

STAMFORD, Conn., April 13, 2006 — Worldwide semiconductor revenue totaled $235 billion in 2005, a 5.7 percent increase from 2004, according to final results by Gartner, Inc. 2005 revenue surpassed the semiconductor industry's previous record of $223 billion set in 2000.

"Personal computers and cellular telephones remain the largest drivers for semiconductor business," said Richard Gordon, research vice president at Gartner. "The popularity of MP3 players, however, accounted for dramatic growth among flash memory vendors in 2005."

High PC demand helped Intel retain its position as the No. 1 semiconductor supplier in 2005. Intel's revenue grew 12.6 percent, twice the market average (see Table 1). Commodity memory demand bolstered the fortunes of Samsung Electronics, who now dominates most areas of the memory market, and Hynix Semiconductor, who moved into the top 10 for the first time in 2005.

Samsung held the No. 1 position in DRAM, SRAM and the fast-growing NAND flash market in 2005. Hynix's NAND flash revenue reached $1.5 billion, up from $212 million in 2004, an increase of more than 600 percent. Over all, this company grew 23 percent - the fastest growth among the top 10 semiconductor suppliers.

Table 1
Top 10 Worldwide Semiconductor Vendors by Revenue (Millions of U.S. Dollars)
2005 Rank 2004 Rank Company 2005 Revenue 2005 Market Share (%) 2004 Revenue 2004 -2005 Growth (%)
1 1 Intel 34,590 14.7 30,730 12.6
2 2 Samsung Electronics 18,347 7.8 16,276 12.7
3 3 Texas Instruments 10,119 4.3 9,170 10.3
4 7 Toshiba 8,984 3.8 8,538 5.2
5 6 STMicrolectronics 8,821 3.8 8,691 1.5
6 4 Renesas Technology 8,291 3.5 9,001 -7.9
7 5 Infineon Technologies 8,205 3.5 8,945 -8.3
8 9 Philips Electronics 5,959 2.5 5,689 4.7
9 12 Hynix Semiconductor 5,723 2.4 4,648 23.1
10 8 NEC Electronics 5,657 2.4 6,438 -12.1
Others 119,939 51.1 113,891 5.6
Total Market 234,635 100.0 222,017 5.7
Source: Gartner Dataquest (April 2006)

The entire NAND flash memory segment grew 71 percent between 2004 and 2005. Other fast growth markets included CMOS image sensors (28 percent), and consumer ASICs (14 percent). The wireless ASIC segment, where Texas Instruments was the market leader, grew 9 percent last year.

The regional trend of sales moving towards Asia/Pacific continued in 2005. The Asia/Pacific region, which includes China, Taiwan, Korea and Singapore, accounted for 44.5 percent of worldwide semiconductor revenue, and the region experienced the strongest growth in 2005 - 11 percent. The Europe, Middle East and Africa (EMEA) region saw the next strongest revenue growth with 4 percent. The Americas had 1 percent growth in 2005 and Japan was flat with revenue increasing 0.2 percent.

Additional information on specific market segments and devices is available in the Gartner report "Market Share: Semiconductor Revenue, Worldwide, 2005." This report provides rankings among vendors of microprocessors and memory, DSPs, ASICs, Application-Specific Standard Products (ASSPs), analog ICs, discretes and many other semiconductor products. The revenues of top suppliers are identified in specific markets such as automotive, consumer products, wireless and wired communication, computers, computer peripherals and industrial controls. Regional market share results are also available for the Americas, EMEA, Asia/Pacific and Japan. The report is available on Gartner's Web site at http://www.gartner.com/DisplayDocument?doc_cd=120719.

This research is part of the information service provided by Gartner's Semiconductors Worldwide group. This research group examines trends in memory, microcomponents, logic, ASIC, analog, discrete device, RF and optical segments to provide a complete industry picture. Products, suppliers, startups, technologies, regional consumption, applications and emerging technologies are all covered in this broad program. To subscribe to this service, please contact Becky Tonnesen at 408-468-8287 or at becky.tonnesen@gartner.com. More information on Gartner's semiconductor research can be found on Gartner's Web site at http://www.gartner.com/it/products/research/asset_129176_2395.jsp.

CONTACT:
Tom McCall
Gartner
(408) 468-8312
tom.mccall@gartner.com


About Gartner:
Gartner, Inc. (NYSE: IT) delivers the technology-related insight necessary for its clients to make the right decisions, every day. Gartner serves 10,000 organizations, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company consists of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 3,700 associates, including 1,200 research analysts and consultants in 75 countries worldwide. For more information, visit 
www.gartner.com.



2005 Press Releases

2004 Press Releases

2003 Press Releases

2002 Press Releases

2001 Press Releases

2000 Press Releases

1999 Press Releases