Semiconductor sales up 3% as manufacturers follow consumer product demands


Semiconductor sales up 3% as manufacturers follow consumer product demands

Antony Savvas

Worldwide semiconductor revenue increased almost 3% this year, as suppliers became increasingly dependant on consumer spending patterns, said analyst Gartner.

Gartner said semiconductor sales reached £135.1bn in 2007, a 2.9% increase on 2006.

"Semiconductor suppliers 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, an analyst 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 supplier's business," he said.

Intel grew revenue more than twice as fast as the semiconductor market average, and it is expected to edge up its market share to 12.2% for the year, from 11.6% in 2006, said Gartner.

Intel's growth came primarily from strong shipments of mobile PCs. Armed with a strong product line-up for enthusiast desktops and servers, Intel regained lost share in those markets from AMD, Gartner said.

The top five semiconductor manufacturers by sales in order are Intel, Samsung, Toshiba, Texas Instruments and STMicroelectronics.

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