Worldwide semiconductor revenue grew 7.9% in 2014

Worldwide Semiconductor Revenue Grew 7.9 Percent in 2014, According to Final Results by Gartner

STAMFORD, Conn. — Worldwide semiconductor revenue totaled $340.3 billion in 2014, a 7.9 percent increase from 2013 revenue of $315.4 billion, according to final results by Gartner, Inc. The top 25 semiconductor vendors’ combined revenue increased 11.7 percent, which was more than the overall industry’s growth. The top 25 vendors accounted for 72.4 percent of total market revenue, up from 69.9 percent in 2013.

“2014 saw all device categories post positive growth, unlike in 2013, when application-specific integrated circuits (ASIC), discretes and microcomponents all declined. The memory market was the best performer for the second year in a row, growing 16.6 percent, meaning the rest of the market only achieved 4.9 percent growth,” said Andrew Norwood, research vice president at Gartner. “As a group, DRAM vendors performed best, lifted by the booming DRAM market, which saw revenue increase 32 percent to $46.1 billion, surpassing the all-time high of $41.8 billion set in 1995.”

Intel saw a return to growth after two years of revenue decline, as PC production recovered, with sales up 7.7 percent (see Table 1). The company retained the No. 1 market share position for the 23rd consecutive year by capturing 15.4 percent of the market, which was down slightly on the previous year.

Table 1. Top 10 Semiconductor Vendors by Revenue, Worldwide, 2014 (Millions of Dollars)

2013  2014                          2013     2014  2013-2014          2014
Rank  Rank  Vendor               Revenue  Revenue     Growth  Market Share
----  ----  -------------------  -------  -------  ---------  ------------
1     1     Intel Corporation     48,589   52,331       7.7%         15.4%
2     2     Samsung Electronics   30,636   34,742      13.4%         10.2%
3     3     Qualcomm              17,211   19,291      12.1%          5.7%
5     4     Micron Technology     11,918   16,278      36.6%          4.8%
4     5     SK Hynix              12,625   15,997      26.7%          4.7%
7     6     Texas Instruments     10,591   11,538       8.9%          3.4%
6     7     Toshiba               11,277   10,665      -5.4%          3.1%
8     8     Broadcom               8,199    8,428       2.8%          2.5%
9     9     STMicroelectronics     8,082    7,376      -8.7%          2.2%
10    10    Renesas Electronics    7,979    7,276      -8.8%          2.1%
            Others               148,321  156,409       5.5%         46.0%
            -------------------  -------  -------  ---------  ------------
            Total Market         315,428  340,331       7.9%          100%

Source: Gartner (March 2015)

2014 saw significantly more merger and acquisition (M&A) activity among the major semiconductor vendors than the previous year, with some announced deals still to close in 2015. Among the most significant deals was Avago Technologies’ acquisition of LSI, propelling the company into the top 25 semiconductor vendors for the first time. MStar Semiconductor was merged with MediaTek after a prolonged merger, and ON Semiconductor acquired Aptina Imaging. After adjusting for closed M&A activity, the top 25 semiconductor vendors grew at 9.1 percent.

Additional information is provided in the Gartner report “Market Share Analysis: Semiconductors, Worldwide, 2014.” The report provides the final worldwide market share rankings for the top 25 semiconductor vendors in 2014 and is available on Gartner’s website.