Chip sales up by 3%, says Gartner
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Worldwide semiconductor revenue is expected to amount to $270.3 billion in 2007, according to preliminary results from Gartner. This represents a 2.9% increase from 2006.
However, Gartner noted mixed performances from vendors, with two of the top 10 experiencing double digit growth and two vendors that showed declines in revenue.
“Semiconductor vendors need to watch the performance of their end customers even closer as a major part of the industry becomes increasingly tied to consumer spending patterns,” said Andrew Norwood, research vice president at Gartner. “Loss of market share in an end user application, such as a mobile phone, by a customer (a mobile phone manufacturer) can have a dramatic effect on a vendor's business.”
Intel grew its revenue more than twice as quickly as the semiconductor market average, and is expected to increase its market share to 12.2% in 2007. The growth, which came primarily from strong shipments of mobile pcs, helped it regain some market share it lost to AMD.
Toshiba achieved the best ranking on Gartner’s Relative Industry Performance ranking, outgrowing its market by 21.1%. Its success was ascribed to good performance in NAND flash memory, cmos image sensors for mobile phones and system level integration, including digital consumer products.
