04-01-2018 Shelley Vishwajeet
Worldwide Semiconductor Revenue Grew 22.2 Percent in 2017
Samsung Electronics has overtaken Intel to emerge as the number one supplier of semiconductor by virtue of clocking over 52% growth in its revenue over the last year. Samsung’s 2017 semiconductor sales now crosses over USD 6.12 billion dwarfing Intel’s sales of USD 54.1 billion by a big margin.
SK Hynix also saw its revenue growing by a whopping 79%, which enabled it to overtake Qualcomm as the third largest player in this category. Micron Technology with sales of over USD 23 billion also overtook Qualcomm which has now slipped to number five position with revenue of USD 17 billion and seeing only a marginal growth of 10.7%.
Worldwide semiconductor revenue totalled USD 419.7 billion in 2017, a 22.2 percent increase from 2016, according to preliminary results by Gartner, Inc. Undersupply helped drive 64 percent revenue growth in the memory market, which accounted for 31 percent of total semiconductor revenue in 2017.
“The largest memory supplier, Samsung Electronics, gained the most market share and took the No. 1 position from Intel — the first time Intel has been toppled since 1992,” said Andrew Norwood, research vice president at Gartner. "Memory accounted for more than two-thirds of all semiconductor revenue growth in 2017, and became the largest semiconductor category."
According to Gartner, the key driver behind the booming memory revenue was higher prices due to a supply shortage. NAND flash prices increased year over year for the first time ever, up 17 percent, while DRAM prices rose 44 percent.
Equipment companies could not absorb these price increases so passed them onto consumers, making everything from PCs to smartphones more expensive in 2017.
Table 1. Top 10 Semiconductor Vendors by Revenue, Worldwide, 2017 (Millions of U.S. Dollars)
|2017 Rank||2016 Rank||Vendor||2017 Revenue||2017 Market Share (%)||2016 Revenue||2016-2017 Growth (%)|
Source: Gartner (January 2018)