Global Semiconductor Industry Topped $429 Billion in 2017
March 29, 2018 | IHS MarkitEstimated reading time: 2 minutes
The semiconductor industry closed out 2017 in blockbuster fashion, posting the highest year-over-year growth in 14 years. Global semiconductor revenue grew 21.7%, reaching $429.1 billion in 2017, according to IHS Markit.
Recording year-over-year growth of 53.6%, and its highest semiconductor revenue ever, Samsung replaced Intel as the new market leader of the semiconductor industry in 2017. Intel was followed by SK Hynix, in third position.
“2017 was quite a memorable year,” said Shaun Teevens, semiconductor supply chain analyst, IHS Markit. “Alongside record industry growth, Intel, which had led the market for 25 years, was supplanted by Samsung as the leading semiconductor supplier in the world.”
Among the top 20 semiconductor suppliers, SK Hynix and Micron enjoyed the largest year-over-year revenue growth, growing 81.2% and 79.7%, respectively. “A very favorable memory market with strong demand and high prices was mainly responsible for the strong growth of these companies,” Teevens said.
Qualcomm remained the top fabless company in 2017, followed by nVidia, which moved into the second position, after growing 42.3% over the previous year. Among the top 20 fabless companies, MLS enjoyed the highest market share gain, moving from number 20 to number 15 in the IHS Markit revenue ranking.
Memory was the strongest industry category
Memory integrated circuits proved to be the strongest industry category, growing 60.8% in 2017 compared to the previous year. Within the category, DRAM grew 76.7% and NAND grew 46.6% — the highest growth rate for both memory subcategories in 10 years. Much of the revenue increase was based on higher prices and increased demand for memory chips, relative to tight supply.
“The technology transition from planar 2D NAND to 3D NAND drove the market into an unbalanced supply-demand environment in 2017, driving prices higher throughout the year,” said Craig Stice, senior director, memory and storage, IHS Markit. “Entering 2018, the 3D NAND transition is now almost three-quarters of the total bit percent of production, and it is projected to provide supply relief for the strong demand coming from the SSD and mobile markets. Prices are expected to begin to decline aggressively, but 2018 could still be a record revenue year for the NAND market.”
%Excluding memory, the remainder of the semiconductor industry grew 9.9% last year, largely due to solid unit-sales growth and strong demand across all applications, regions and technologies. Notably, semiconductors used for data processing applications expanded 33.4% by year-end. Intel remained the market leader in this category, with sales almost two times larger than second-ranked Samsung.
About IHS Markit
IHS Markit is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80% of the Fortune Global 500 and the world’s leading financial institutions.
Suggested Items
The New Chapter: Attracting ‘Generation Green’
03/28/2024 | Hannah Grace & Paige Fiet -- Column: The New ChapterIn the electronics industry, we talk a lot about sustainability in terms of recruitment and retention of the next generation of engineers. But what if the key to sustaining the industry long into the future is through the more common definition of the word? What if, for just a moment, we think about sustainability in terms of the environment and what we as an industry are doing to care for it? Because, if you weren’t aware, Gen Z cares tremendously about the environment and the actions companies are taking to preserve it. Without Gen Z joining the electronics industry’s workforce, we won’t be able to sustain the industry for much longer.
Accenture Invests in Sanctuary AI to Bring AI-Powered, Humanoid Robotics to Work Alongside Humans
03/27/2024 | BUSINESS WIREAccenture has made a strategic investment, through Accenture Ventures, in Sanctuary AI, a developer of humanoid general-purpose robots that are powered by AI and can perform a wide variety of work tasks quickly, safely and effectively.
Don Dennison Appointed to Roll Out KIC’s Latest Thermal Analysis System Software in the Northeast
03/26/2024 | KICKIC, a renowned pioneer in thermal process and temperature measurement solutions for electronics manufacturing, is pleased to announce the appointment of PIT Equipment Services, LLC, led by Don Dennison, as its representative for New York, New Jersey, and Eastern Pennsylvania.
iNEMI/IPC White Paper on Complex Integrated Systems Highlights Future Technology and Manufacturing Ecosystem Needs
03/25/2024 | IPCToday’s system solutions combine more varied functionality, such as digital, analog, optical, micro-mechanical, etc., packed into smaller form factors. As a result, electronics manufacturing has to deliver increasingly complex integration of diverse technologies with system designs that blur the distinction between chip, package, board, and assembly.
Seeking Employment: Meet Gary Turner
03/25/2024 | Barry Matties, I-Connect007Meet Gary Turner, a recent graduate from the University of Texas at Dallas with a bachelor’s degree in mechanical engineering and a master’s in material science and engineering. He is currently seeking employment in the industry. The following interview will allow you to learn about Gary and see if he might be a good candidate for a position you are looking to fill.