Gartner: Worldwide semiconductor revenue grew 22.2% in 2017, Samsung leads the pack

In 2017, worldwide semiconductor revenue totaled US$419.7 billion, a 22.2% increase from 2016, according to preliminary results by Gartner, Inc.

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In 2017, worldwide semiconductor revenue totaled US$419.7 billion, according to preliminary results by Gartner (photo courtesy of TSMC)

In 2017, worldwide semiconductor revenue totaled US$419.7 billion, according to preliminary results by Gartner (photo courtesy of TSMC)

TAIPEI (Taiwan News)—In 2017, worldwide semiconductor revenue totaled US$419.7 billion, a 22.2% increase from 2016, according to preliminary results by Gartner, Inc.

The research and advisory company said that undersupply helped drive 64% revenue growth in the memory market, which accounted for 31% of total semiconductor revenue in 2017.

"The largest memory supplier, Samsung Electronics, gained the most market share and took the No. 1 position from Intel — the first time Intel has been toppled since 1992," said Andrew Norwood, research vice president at Gartner. "Memory accounted for more than two-thirds of all semiconductor revenue growth in 2017, and became the largest semiconductor category."

Higher prices due to a supply shortage were the key driver behind the booming memory revenue, Gartner said. NAND flash prices increased year over year for the first time ever, up 17%, while DRAM prices rose 44%, the company added.

As equipment companies could not absorb these price increases, they passed them onto consumers, making everything from PCs to smartphones more expensive in 2017, according to Gartner.

Other major memory vendors, including SK Hynix and Micron Technology, also performed strongly in 2017 and rose in the rankings.

Second-placed Intel grew its revenue 6.7% in 2017, driven by 6% growth in data center processor revenue due to demand from cloud and communications service providers, Gartner said.

The current rankings may not last long, however, "Samsung’s lead is literally built on sand, in the form of memory silicon," said Norwood. "Memory pricing will weaken in 2018, initially for NAND flash and then DRAM in 2019 as China increases its memory production capacity. We then expect Samsung to lose a lot of the revenue gains it has made."

2017 Rank

2016 Rank

Vendor

2017 Revenue

2017 Market Share (%)

2016 Revenue

2016-2017 Growth (%)

1

2

Samsung Electronics

61,215

14.6

40,104

52.6

2

1

Intel

57,712

13.8

54,091

6.7

3

4

SK Hynix

26,309

6.3

14,700

79.0

4

6

Micron Technology

23,062

5.5

12,950

78.1

5

3

Qualcomm

17,063

4.1

15,415

10.7

6

5

Broadcom

15,490

3.7

13,223

17.1

7

7

Texas Instruments

13,806

3.3

11,901

16.0

8

8

Toshiba

12,813

3.1

9,918

29.2

9

17

Western Digital

9,181

2.2

4,170

120.2

10

9

NXP

8,651

2.1

9,306

-7.0

 

 

Others

174,418

41.6

157,736

10.6

 

 

Total Market

419,720

100.0

343,514

22.2

Source: Gartner (January 2018)