Worldwide Semiconductor Revenue Declined 2.3% in 2015
April 5, 2016 | Gartner, Inc.Estimated reading time: 2 minutes
Worldwide semiconductor revenue totaled $334.8 billion in 2015, a 2.3 percent decline from 2014, according to final results by Gartner, Inc. The combined revenue of the top 25 semiconductor vendors fell by 0.5 percent during 2015. This was a better performance than the rest of the market, however, which saw a 6.9 percent revenue decline. The top 25 vendors accounted for 73.5 percent of the market, down slightly from 74 percent in 2014.
"The worldwide semiconductor market declined in 2015 as slowing demand for key applications combined with strong currency fluctuations to subdue the market," said Andrew Norwood, research vice president at Gartner. "2015 saw a mixed performance by the different device categories, unlike 2014 when all categories posted positive growth. Nonoptical sensors performed best due to increased usage of fingerprint sensors in smartphones, while discretes saw the strongest decline due to a mix of weak demand and currency issues."
Intel retained the No. 1 market share position for the 24th consecutive year, capturing 15.4 percent of the worldwide market, despite experiencing a 1.2 percent revenue decline in 2015 (see Table 1). Infineon Technologies experienced the strongest growth among the top vendors, moving from No. 12 to the No. 9 position in 2015.
2015 saw record merger and acquisition (M&A) activity between major semiconductor vendors, including several acquisitions and disposals that had a material effect on semiconductor sales. Among the most significant deals was Intel's acquisition of Lantiq. Driven by Lantiq's broadband gateway and digital home capabilities, this acquisition helped Intel nearly double its wired ASSP business.
"2015 semiconductor revenue results are skewed by the large amount of M&A activity during the year," said Mr. Norwood. "If we adjust for this M&A activity by adding in revenue for 2015 and 2014 where necessary, then the performance is somewhat different: The top 25 vendors would have experienced a 1.7 percent revenue decline, and the rest of the market would have declined 3.9 percent."
About Gartner
Gartner, Inc. is the world's leading information technology research and advisory company. The company delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 7,900 associates, including more than 1,700 research analysts and consultants, and clients in more than 90 countries.
Suggested Items
IDC Forecasts Slower Growth for Global Telecommunications Services Market: Could AI Help Telcos to Maintain Healthy Margins?
05/08/2024 | IDCWorldwide spending on Telecom Services and Pay TV Services reached $1,509 billion in 2023, an increase of 2.1% over 2022, according to the International Data Corporation (IDC) Worldwide Semiannual Telecom Services Tracker.
Simbe Partners with Plexus to Scale Manufacturing and Meet Global Retail Demand
05/08/2024 | Globe NewswireSimbe, the leading provider of Store Intelligence™ solutions that increase retailer performance through unprecedented visibility and insights, today announced a partnership with Plexus Corp. to bring its best-in-class retail robotics-as-a-service to market quickly and at global scale.
IDTechEx Discusses Low-Loss Materials: The Enabler of Future Connected Vehicles?
05/06/2024 | IDTechExFuture connected vehicles will offer future drivers a safer, smoother, and more convenient driving experience. Not only will drivers get access to more navigation and entertainment options, but they will also gain access to safety technologies that will potentially reduce accidents, improve congestion, and reduce emissions globally by allowing vehicle safety systems to communicate with each other and with city traffic infrastructure.
HBM Prices to Increase by 5–10% in 2025, Accounting for Over 30% of Total DRAM Value
05/06/2024 | TrendForceAvril Wu, TrendForce Senior Research Vice President, reports that the HBM market is poised for robust growth, driven by significant pricing premiums and increased capacity needs for AI chips.
Tablet Shipments Show Signs of Recovery in Q1 2024
05/06/2024 | IDCAfter more than two years of decline, worldwide tablet shipments posted modest year-over-year growth of 0.5% in the first quarter of 2024 (1Q24), totaling 30.8 million units, according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker.