Press Release

STAMFORD, Conn., May 15, 2017 View All Press Releases

Worldwide Semiconductor Revenue Grew 2.6 Percent in 2016, According to Final Results by Gartner

Worldwide semiconductor revenue totaled $343.5 billion in 2016, a 2.6 percent increase from 2015 revenue of $334.9 billion, according to final results by Gartner, Inc. The top 25 semiconductor vendors' combined revenue increased 10.5 percent, a significantly better performance than the overall industry's growth; however, most of this growth resulted from merger and acquisition (M&A) activity.

"The semiconductor industry rebounded in 2016, with a weak start to the year, characterized by inventory correction, giving way to strengthening demand and an improving pricing environment in the second half," said James Hines research director at Gartner. "Worldwide semiconductor revenue growth was supported by increasing production in many electronic equipment segments, improving NAND flash memory pricing and relatively benign currency movements."

Intel retained its No. 1 position as the largest semiconductor manufacturer and grew its semiconductor revenue 4.6 percent in 2016 (see Table 1). Samsung Electronics continued to maintain the No. 2 spot with 11.7 percent market share.

Table 1. Top 10 Semiconductor Vendors by Revenue, Worldwide, 2016 (Millions of Dollars)

2015 Rank

2016 Rank

Vendor

2016 Revenue

2016
Market Share (%)

2015 Revenue

2015-2016 Growth (%)

1

1

Intel

54,091

15.7

51,690

4.6

2

2

Samsung Electronics

40,104

11.7

37,852

5.9

4

3

Qualcomm

15,415

4.5

16,079

-4.1

3

4

SK hynix

14,700

4.3

16,374

-10.2

17

5

Broadcom Ltd. (formerly Avago)

13,223

3.8

4,543

191.1

5

6

Micron Technology

12,950

3.8

13,816

-6.3

6

7

Texas Instruments

11,901

3.5

11,635

2.3

7

8

Toshiba

9,918

2.9

9,162

8.3

12

9

NXP Semiconductors

9,306

2.7

6,517

42.8

10

10

Media Tek

8,725

2.5

6,704

30.1

 

Others

153,181

44.6

160,562

-4.6

Total Market

343,514

100.0

334,934

2.6

Source: Gartner (May 2017)

Consolidation continued to play a major role in the market share rankings, with several large companies growing through acquisitions. Merger and acquisition activity among the major vendors in 2016 included Avago Technologies' acquisition of Broadcom Corp. to become Broadcom Ltd., On Semiconductor's acquisition of Fairchild Semiconductor, and Western Digital's acquisition of SanDisk. The largest mover in the top 25 was Broadcom Ltd., which moved up 12 places in the market share ranking.

"The combined revenue of the top 25 semiconductor vendors increased by 10.5 percent during 2016 and accounted for a 74.9 percent share, outperforming the rest of the market, which saw a 15.6 percent revenue decline," said Mr. Hines. "However, these results are skewed by the large amount of M&A activity during 2015 and 2016. If we adjust for this M&A activity by adding the revenue of each acquired company to the revenue of the acquirer for both 2015 and 2016 where necessary, then the top 25 vendors would have experienced a 1.9 percent revenue increase, and the rest of the market would have increased by 4.6 percent."

Gartner clients can learn more in the report: "Market Share Analysis: Semiconductors, Worldwide, 2016."

Contacts
About Gartner

Gartner, Inc. (NYSE: IT), is the world's leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We're trusted as an objective resource and critical partner by more than 15,000 organizations in more than 100 countries—across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit www.gartner.com.

Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.