Global Semiconductors On the Rise

Global semiconductor revenue is expected to rise at faster and force bigger chipmakers to acquire smaller rivals to increase their market share, according to bean counters at research outfit IDC.

In an industry report, IDC predicts that revenue may expand by between six percent and seven percent this year. Global semiconductor sales rose 3.7 percent to $301 billion in 2011, as orders for chips used in wireless devices offset declining revenue for computing-related chips, IDC said.

But it thinks all this will coase nergers and acquisitions among chipmakers will continue. Already Qualcomm bought Atheros and Texas Instruments took over National Semiconductor. But IDC thinks that industry consolidation may allow bigger chipmakers to offer products that are used in a wider range of applications.

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Samsung Gains On Intel

Globally semiconductor revenue is expected to increase this year, with Samsung gaining noticeable ground on top semiconductor company Intel in market share, Gartner said in a study released Wednesday.

Revenue is expected to reach a “landmark” US$300.3 billion in 2010, up 31.5% from 2009, according to preliminary results released by Gartner. The semiconductor market has been rebounding after the worldwide recession curtailed chip revenue in 2009, when year-over-year revenue declined by 10%.

As the economy stabilized this year, semiconductors manufacturers quickly added capacity to meet the growing demand of parts from system makers. But semiconductor demand started weakening again starting in the third quarter this year, Gartner said.  Read More……