Worldwide semiconductor revenue rose a solid 5% in 2013, with memory chips the star performers, according to IHS.
Total semiconductor revenues in 2013 reached US$318.1 billion, up from US$303.1 billion in 2012. 2013's growth effectively reversed the disappointing 2.4% loss of 2012, when revenues contracted from US$310.6 billion in 2011.
Overall the top 25 chip makers amassed revenue amounting to US$225.3 billion, 71% of total industry takings, up from 69% in 2012. Heading the list was Intel with US$47 billion, or 15% of the market.
"Memory ICs were the key drivers of growth in the semiconductor industry in 2013," said Dale Ford, VP at IHS Technology. "DRAM showed the strongest expansion among major memory segments, with revenue surging by 32.5% as suppliers were able to achieve a balance between supply and demand that yielded lucrative pricing for parts. NAND flash also posted a strong year, at 24.2% growth, as demand for the memory from smartphones and tablets continued to rise."
Also boasting strong growth aside from memory were semiconductors from a wide range of segments. Small-signal field-effect transistors (FET) jumped 21.3%; logic application-specific standard products (ASSP) for wireless communications grew 15.3%; and analog ASSPs also for wireless rose 13.5%.
Meanwhile, automotive logic ASSPs expanded 14%, while automotive analog application specific ICs (ASSPs and ASICs) climbed a more modest but still-healthy 8.1%. Microcontrollers (MCU) for smart cards and IC cards enjoyed similarly vigorous activity, up 12.5% on the year, said IHS.
Based on the robust performance of the memory market, the major suppliers of memory also jumped up in rankings. For Idaho-based Micron Technology, strong organic growth combined with its acquisition of Elpida Memory pushed company revenues up 108.5%, propelling Micron to number four, up from tenth place in 2012.
For its part, South Korea's SK Hynix ascended from seventh place to number five on the strength of 42.8% organic growth. All told, memory suppliers accounted for three of the top five slots in 2013.
Qualcomm of California and Taiwan's MediaTek were the other major success stories in 2013 among the top 25, owing to their market-leading performance in chips for wireless products such as smartphones. Qualcomm maintained the number three position with 30.6% growth, while MediaTek rose to number 14 with a 36.1% increase.
NXP Semiconductors of the Netherlands together with US-based Avago Technologies and Xilinx likewise enjoyed significant success in 2013, relishing growth of 13.7%, 9.2% and 4.6%, respectively. Both Avago and Xilinx climbed four places from outside the top 25 into the magic circle.
In contrast to the high flyers, Japan-based chip companies struggled the most during 2013. Renesas Electronics, Sony and Rohm Semiconductor saw revenues fall by 13.7%, 27% and 14.4%, respectively. Renesas dropped four places to number 10, in danger of losing its coveted top 10 status altogether, added IHS.
Asia-Pacific fuels growth
Semiconductor suppliers headquartered in Asia-Pacific saw their combined revenue grow 14.7%, allowing them to capture 25.3% of the chip market-the largest share ever for the region. For the first time, Asia-Pacific accounted for over a quarter of the worldwide semiconductor market.
For companies headquartered in the Americas, collective revenues also grew strongly, up 8.7%, translating into 52.4% of total industry takings.
Meanwhile, Japan continues to be mired in a slump, with chip revenue for the area declining a steep 17.9%, noted IHS | 