Although Intel retains its title as the leading semiconductor supplier in sales, Samsung shrunk Intel’s lead to 16 percent in the second quarter (Q2) of 2015, according IC Insight’s August Update. In 2014, Intel’s semiconductor sales were 36 percent greater than Samsung’s revenues.
However, IC Insights analysts believe it will be tough for Samsung to make additional gains due to pricing pressures in the DRAM market and Intel’s guidance for a sales increase of eight percent in the third quarter (Q3) of 2015, compared to the second quarter.
The update to the 2015 McClean Report also reveals that it took more than $2.2 billion in sales to make the top 20 global semiconductor ranking for the first half of 2015, and eight of the top 20 companies had first half sales of at least $5.0 billion. The ranking of IC, optoelectronic, sensor and discrete devices includes three pure-play foundries - TSMC, GlobalFoundries, and UMC - and four fabless companies – Qualcomm, Broadcom, Avago and MediaTek.
“IC Insights includes foundries in the top 20 semiconductor supplier ranking since it has always viewed the ranking as a top supplier list, not a market share ranking, and realizes that in some cases the semiconductor sales are double counted,” said the market researcher.
The top 20 semiconductor companies’ sales increased by only one percent in Q2 compared to 1Q, which matches the growth rate of the total worldwide semiconductor industry. The fastest growing company in the ranking is Samsung with 10 percent growth, and the worst performing company is Qualcomm with a 13 percent decline. Qualcomm is expected to record a sales drop of 20 percent in 2015, according to IC Insights.
Sharp and UMC both joined the top 20 ranking replacing Nvidia and AMD. AMD’s sales dropped 35 percent year-over year, falling below $1.0 billion for the first time since Q3 in 2003, according to IC Insights. AMD sales dropped by $361 million in the first half of 2015 after falling by $403 million in 2014.
IC Insights lowered its 2015 worldwide semiconductor market forecast from five percent to two percent. Sales of the top 20 semiconductor suppliers totaled $128.3 billion in the first half of 2015, which was under 50 percent of the top 20 companies’ 2014 sales of $259.1 billion. Analysts forecast the top 20 semiconductor suppliers’ combined sales in 2015 will grow by about one to two percent compared to 2014.
The report also shows the top 20 ranking if the Avago/Broadcom and NXP/Freescale mergers were in place. IC Insights would have ranked Avago/Broadcom at number seven and NXP/Freescale at number 10. IC Insights expects additional mergers and acquisitions over the next few years to continue shaking up the top 20 semiconductor supplier rankings.