Gartner: global semiconductor market on the up

Worldwide semiconductor revenue grew by 2.6% in 2016 and was valued at $343.5bn.

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Gartner: global semiconductor market on the up The top 25 semiconductor vendor's combined revenue has increased by 10.5%, indicating a better performance than the overall industry's growth.
By  Alexander Sophoclis Pieri Published  May 22, 2017

According to global market intelligence firm Gartner, the global semiconductor market experienced positive growth over 2016. Recent analysis showed a 2.6% increase in 2016, totaling $343.5bn and up from the 2015 figure of $334.8bn.

Furthermore, the top 25 semiconductor vendor's combined revenue has increased by 10.5%, indicating a better performance than the overall industry's growth. Gartner notes however, that the majority of this growth came as a result of merger and acquisition activity.

James Hines research director at Gartner, commented: "The semiconductor industry rebounded in 2016, with a weak start to the year, characterized by inventory correction, giving way to strengthening demand and an improving pricing environment in the second half."

"Worldwide semiconductor revenue growth was supported by increasing production in many electronic equipment segments, improving NAND flash memory pricing and relatively benign currency movements."

The latest rankings showed that Intel retained the top spot as the largest semiconductor manufacturer, and was followed by Samsung Electronics and Qualcomm, holding second and third place respectively. Intel reportedly grew its semiconductor revenue by 4.6% in 2016.

"The combined revenue of the top 25 semiconductor vendors increased by 10.5% during 2016 and accounted for a 74.9% share, outperforming the rest of the market, which saw a 15.6% revenue decline," added Mr. Hines.

"However, these results are skewed by the large amount of M&A activity during 2015 and 2016. If we adjust for this M&A activity by adding the revenue of each acquired company to the revenue of the acquirer for both 2015 and 2016 where necessary, then the top 25 vendors would have experienced a 1.9% revenue increase, and the rest of the market would have increased by 4.6%."

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