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June 19, 2019 | IC InsightsEstimated reading time: 1 minute
China and Taiwan companies register double-digit shares in the fabless segment but very low shares of the IDM IC segment.
The figure shows the 2018 IDM and fabless company shares of IC sales as well as the total worldwide share of the IC market by company headquarters location.
The U.S. companies’ held just over 50% of the total worldwide IC market in 2018 followed by the South Korean companies with a 27% share, up three percentage points from 2017. The Taiwanese companies, on the strength of their fabless company IC sales, held the same 6% share of total IC sales as the European companies. Overall, the South Korean and Japanese companies have an extremely weak presence in the fabless IC segment and the Taiwanese and Chinese companies have a very low share of the IDM portion of the IC market. Overall, U.S.-headquartered companies show the most balance with regard to IDM, fabless, and total IC industry marketshare.
Driven by a surge in DRAM and NAND flash memory IC sales in 2018, the South Korean-headquartered companies, primarily Samsung and SK Hynix, registered a 26% sales increase, outpacing the Chinese companies by three percentage points last year. The South Korean and Chinese companies were the only regions/countries to grow faster than the total IC industry (14%) last year. However, with the memory market expected to show a huge 30% drop in 2019, it is likely that the South Korean companies will go from “first to worst” regarding IC sales growth by company headquarters location this year as compared to last year.
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