Despite forecasts of negative growth in 2016, the top 20 semiconductor companies increased their sales by seven percent in the second quarter (Q2) of 2016 compared to the first quarter (Q1), according to IC Insights. The research also reveals that seven companies increased sales in the double digits. Only two – Intel and Renesas – reported a decline in sales.
The growth covers most regions with eight suppliers headquartered in the U.S., three in Japan, three in Taiwan, three in Europe, two in South Korea, and one in Singapore. The ranking includes three pure-play foundries - TSMC, GlobalFoundries, and UMC - and six fabless companies.
“If the three pure-play foundries were excluded from the top 20 ranking, China-based fabless supplier HiSilicon ($1,710 million), U.S.-based IDM ON Semiconductor ($1,695 million), and U.S.-based IDM Analog Devices ($1,583 million) would have been ranked in the 18th, 19th, and 20th positions, respectively,” said IC Insights.
Although Intel posted a drop in sales in Q2, the chip maker held onto its number one position in the top 20 ranking. Intel also increased its market share over Samsung from 20 percent in 2015 to 33 percent in the first half.
Apple ranks among the top 20, although the company only uses its processors in its own products. The iPhone maker made the biggest gain in the ranking, climbing up three positions to number 14. IC Insights estimates the sales value of Apple’s custom ARM-based SoC processors at $2.9 billion in the first half of 2016. Other big movers include MediaTek and the “new” Broadcom (including the merger of Avago), each moved up the ranking by two positions.
However, Taiwan-based MediaTek posted a 32 percent increase in sales, making it the fastest growing company among the top 20. Analysts attribute the company’s growth to application processor shipments to China-based smartphone suppliers, Oppo and Vivo. This is despite worldwide smartphone unit shipments increasing by only five percent in 2016. IC Insights forecasts the company to reach $8.8 billion in sales in 2016, up 31 percent compared to 2015.
To make the top 20 ranking, companies posted at least $1.86 billion in sales. However, 13 of the top 20 recorded sales of at least $3 billion in the first half of 2016. One of the biggest changes to the ranking is new entrant – AMD, which replaced Sharp. AMD increased sales by 23 percent in the 2Q16 while Sharp’s sales declined by 13 percent.
Based on the possible mergers and acquisitions in the semiconductor industry over the next few years, IC Insights expects a significant shake-up in the top 20 ranking.