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The semiconductor industry is the aggregate collection of companies engaged in the design and fabrication of semiconductor devices. It formed around 1960, once the fabrication of semiconductors became a viable business. It has since grown to be the $336 billion industry it is today.[1]

Industry structure[edit]

The global semiconductor industry is dominated by USA, South Korea, Japan, Taiwan, Singapore, and European Union. The U.S. industry faces challenges to development by some forms of government regulation[citation needed]. The U.S. government regulates exports and certain uses of some types of semiconductors due to their potential dual use in military applications.

Based on a KPMG report it was a $304 billion market in 2010.

WSTS revised up its full-year 2014 global semiconductor sales growth forecast to 9 percent ($333.2 billion in total sales) from the 6.5 percent it forecasted six months ago. WSTS also forecasts positive sales growth to continue in 2015 at 3.4 percent ($344.5 billion in total sales) and 2016 at 3.1 percent ($355.3 billion).

Positive global macroeconomic growth in 2015 will continue to support semiconductor sales in 2015. While the global economy recovers at an agonizingly slow and fitful pace, it is nevertheless recovering. In its October World Economic Outlook, the IMF revised downward its growth forecast for 2014 by 0.4 percent to 3.3 percent, and global growth for 2015 was lowered slightly to 3.8 percent.

This growth in 2015 should bode well for continued growth in global semiconductor sales in 2015 as forecast by WSTS. As semiconductors and the technologies they enable have become pervasive across all aspects of worldwide consumer, industrial, and government applications, global semiconductor industry sales performance has become increasingly tied to global GDP growth.

The table below from WSTS provides some product and regional detail on semiconductor sales performance in 2014 and forecast growth in 2015 and 2016. Note that sales growth in 2015 and beyond is forecast to be more balanced with all products and nearly all regions experiencing positive growth. This board-based positive growth over the next two years is indicative of sales growth based on the foundation of strong global economic performance.

source : http://blog.semiconductors.org/blog/semiconductor-industry-forecasts-broad-and-sustained-sales-growth-for-2015?hsFormKey=7f457622ae7cd0f6f8dfb59c4c26bf3c&submissionGuid=645af36c-fd07-4d56-97f9-02034cd95a70#module_141408316902423954

Company Country of origin Revenue
$ USD)
2012/2011 changes Market share
1 1 1 1 Intel Corporation  United States $47,543 -2.4% 15.7%
2 2 2 2 Samsung Electronics  South Korea $30,474 +6.7% 10.1%
3 6 9 6 Qualcomm  United States $12,976 +27.2% 4.3%
4 3 4 4 Texas Instruments  United States $12,008 -14.0% 4.0%
5 4 3 3 Toshiba Semiconductors  Japan $10,996 -13.6% 3.6%
6 5 5 9 Renesas Electronics (1)  Japan $9,430 -11.4% 3.1%
7 8 6 7 Hynix  South Korea $8,462 -8.9% 2.8%
8 7 7 5 STMicroelectronics  France /  Italy $8,453 -13.2% 2.8%
9 10 10 14 Broadcom  United States $7,840 +9.5% 2.6%
10 9 8 13 Micron Technology (2)  United States $6,955 -5.6% 2.3%

Source : iSuppli Corporation supplied rankings for 2010 (Semiconductor foundries are excluded)


This industry features a number of distinct characteristics that position it uniquely in the economy and in the global competitive arena. These include:

  • The role of the industry as technology enabler. The semiconductor industry is widely recognized as a key driver for economic growth in its role as a multiple lever and technology enabler for the whole electronics value chain. In other words, from a worldwide base semiconductor market of $213 billion in 2004, the industry enables the generation of some $1,200 billion in electronic systems business and $5,000 billion in services, representing close to 10% of world GDP.
  • Continuous growth but in a cyclical pattern with high volatility. While the current 20 year annual average growth of the semiconductor industry is on the order of 13%, this has been accompanied by equally above-average market volatility, which can lead to significant if not dramatic cyclical swings.
  • The need for high degrees of flexibility and innovation in order to constantly adjust to the rapid pace of change in the market. Many products embedding semiconductor devices often have a very short life cycle. At the same time, the rate of constant price-performance improvement in the semiconductor industry is staggering. As a consequence, changes in the semiconductor market not only occur extremely rapidly but also anticipate changes in industries evolving at a slower pace. Yet another consequence of this rapid pace is that established market strongholds can be displaced very quickly.

See also[edit]


External links[edit]

Original courtesy of Wikipedia: http://en.wikipedia.org/wiki/Semiconductor_industry — Please support Wikipedia.
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23667 news items

Tue, 15 Sep 2015 12:15:15 -0700

China has been in the news a lot recently because many U.S. companies depend on the region for growth. This is especially true for the semiconductor industry, which comprises the brains behind the many electronic gadgets currently selling like hotcakes ...
Market Realist
Thu, 10 Sep 2015 13:15:00 -0700

In the previous part of this series, we saw that South Korea outpaced Japan to become the second largest semiconductor producer in the world. However, South Korea's position is now under threat as China (MCHI) aims to boost its own semiconductor ...
Market Realist
Thu, 10 Sep 2015 13:15:00 -0700

In 1990, Japan led the semiconductor industry, with six Japanese companies named in the top ten semiconductor sales leaders. This score has not been beaten by any country so far. The US has come close, with five companies in the top ten sales list.

Yibada (English Edition)

PR Newswire (press release)
Wed, 09 Sep 2015 11:44:06 -0700

According to China Semiconductor Industry Association, the total value of the entire semiconductor industry chain exceeded RMB300 billion in 2014, of which only RMB104.7 billion or one-third was concerned with products (excluding foreign companies).

Seeking Alpha

Seeking Alpha
Mon, 21 Sep 2015 06:41:15 -0700

As Nova is at the forefront of the advanced metrology industry, the company is well positioned to take advantage of the semiconductor industry's transition to increasingly sophisticated technologies like 3D NAND. With the recent release of Nova's ...
PR Newswire (press release)
Tue, 15 Sep 2015 17:11:15 -0700

NEW YORK, Sept. 15, 2015 /PRNewswire/ -- Global and China Automotive Semiconductor Industry Report, 2014-2015 mainly focuses on the following: 1. Global automotive market and industry; 2. China's automotive market and industry; 3. Automotive ...
Market Realist
Thu, 10 Sep 2015 13:15:00 -0700

Taiwan (EWT), a part of the Greater China region, has emerged as the third-largest semiconductor manufacturer in the world. The country faces tough competition from Korea and Japan in the manufacturing space. Strong demand from China for mobile chips ...
Wed, 07 Oct 2015 12:52:30 -0700

A Porter's five forces analysis of the global semiconductor industry is carried out. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a ...

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