Gartner: 2011 Worldwide Semiconductor Revenue Flat

Economy slows equipment and semiconductor orders in 2011 after fast start to year, researcher says.

December 23, 2011

D.H. Kass

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Global semiconductor revenue rose less than one percent in 2011 to $302 billion, retreating from a promising start to the year owing to the sluggish economy that slowed equipment and semiconductor orders, according to researcher Gartner Inc.

Intel Corp. posted its highest-ever share of the market at 16.9 percent, besting its previous high water mark achieved in 1998 when it held 16.3 percent of the segment. The vendor, which tallied a 21.6 percent boost in semiconductor revenue over last year’s totals to some $51 billion, recorded its 20th straight year at the top of the market.

"The industry did well in the early part of the year, in many cases entering the year with backlog from an exuberant 2010," said Stephan Ohr, Gartner semiconductor research director.

"But uncertainty about the state of the macro economy set in at the midpoint of the year,” he said. “Consumers held off purchases, and infrastructure expansion plans languished as governments resisted assuming more debt.”

Ohr said that as the year progressed equipment inventories grew which impacted the entire industry.

Samsung Electronics held the second spot in the market with 9.7 percent share of the market for $29.1 billion in revenue or 3.7 growth from 2010’s totals. Texas Instruments commanded third place with $12 billion in sales, a growth of 1.7 percent over last year, for 4 percent of the market.

Gartner said that its figures showed that as a group processor makers Intel, Qualcomm, Advanced Micro Devices and Nvidia outperformed the rest of the industry.

The researcher said that Intel posted solid growth in the first half of the year as the PC market stocked up inventory in anticipation of a strong second half and its server business grew despite slowdowns in PC production.

Intel's revenue for 2011 benefitted from its purchase of Infineon early in 2011, which contributed about $1.4 billion to its sales for the year, Gartner said.

TAGS: Intel,Texas Instruments,AMD,Samsung,semiconductor,Gartner

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