In a new report, Gartner (NYSE:
) reveals that semiconductor revenue declined by three percent in
2012. What does this mean for the top 10 semiconductor
manufacturers? According to Gartner, Intel (NASDAQ:
) -- the world's largest chipmaker -- experienced a revenue
decline of 2.7 percent. Texas Instruments (NYSE:
) was hit even harder; its revenue shrunk by 6.4 percent. Among
the publicly traded firms, Micron Technology (NYSE:
) suffered the most with a revenue decline of 9.3 percent.
They weren't the only firms to suffer. Renesas Electronics,
STMicroelectronics, SK Hynix, Samsung and Toshiba also endured
Only two semiconductor firms managed to increase their revenue
in 2012: Qualcomm (NASDAQ:
), which is up an astonishing 29.6 percent, and Broadcom (NASDAQ:
), which is up 8.8 percent. Qualcomm's gains were so massive that
the company actually jumped three places (from sixth to third) in
the semiconductor market. Broadcom gained one spot, moving from
ninth to tenth place.
"Uncertainty about the state of the macroeconomy, coupled with
ongoing inventory overhang, sent ripples through the
semiconductor industry," Steve Ohr, research director at Gartner,
said in a
. "The hardest hit areas include the PC supply chain, memory,
analog and discrete components. The PC business, ordinarily a
growth driver, was on a negative slope for the first time in many
years. PC production declined 2.5 percent in 2012. Even the
smartphone juggernaut had begun to show signs of maturing, though
it remained the strongest driver for revenue growth in 2012."
Worldwide semiconductor revenue is estimated to be at $298 in
2012 versus $307 in 2011. According to Gartner, the revenue of
top 25 semiconductor vendors declined 4.2 percent, which is more
than the industry average.
Despite Intel's declines, the company held onto its number-one
market share position for the 21st consecutive year. Intel
acquired 16.6 percent of the market, setting a new record for the
Samsung's declines are being blamed on three "major product"
areas: DRAM, NAND flash and system integrated circuit (
). The company may also be suffering the fate of its botched
relationship with Apple (NASDAQ:
). The iPhone maker is expected to
with other suppliers. After that news broke, many wondered
Apple could get without Samsung in the near-term. However, it
seems that Samsung may be hit even harder as its biggest client
(c) 2012 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.