Gartner revises down view of 2018 global chip market

April 15, 2019 //By Peter Clarke
Gartner revises down view of 2018 global chip market
Worldwide semiconductor revenue totalled $474.6 billion in 2018, a 12.5 percent increase from 2017, according to final results for the year from Gartner Inc. (Stamford, Conn.).

This is a minor downward revision from the 13.4 percent growth to $476.7 billion the market researcher published in January 2018 (see Gartner: Memory carried 2018 global chip market to growth ).

The revenues of most of the companies in the top ten ranking were revised down, although Intel was given a minor increase, as was STMicroelectronics. ST's boost was enough to see rise and swap places with Western Digital and achieve position 8 in the ranking.

Table 1. Top ten semiconductor vendors by worldwide revenue in 2018 ($millions). Source: Gartner.

"Despite slowing growth, the memory market was still the largest semiconductor market, accounting for 34.3 percent of revenue," said Andrew Norwood, research vice president at Gartner, in a statement. "This was driven by increases in average selling prices (ASPs) for DRAM for the majority of 2018. However, ASPs began to decline in the fourth quarter and this will continue through most of 2019 due to oversupply conditions."

As memory revenues decline in 2019 Samsung is expected to lose its leading position in the ranking (see

Intel’s semiconductor revenue grew by 12.9 percent compared with 2017, despite delays in the introduction of 10 nm manufacturing process and a constrained low-end CPU supply situation in the second half of 2018. SK hynix experienced the strongest growth among the top 10 worldwide semiconductor vendors with a 37.4 percent increase in 2018 (see Table 1).

The second-largest category — application-specific standard products (ASSPs) — saw growth of only 5.1 percent due to a stalling smartphone market combined with a tablet market that continues to decline. Vendors that rely heavily on these end markets to sell application processors, modems and other components in many cases saw semiconductor revenue decline. Leading vendors in these areas, including Qualcomm and MediaTek, are aggressively expanding into adjacent markets with stronger prospects for growth, including automotive and Internet of Things (IoT) applications. However, similar to the maturation of the PC

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