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Global Semiconductor Market Achieves Strong, Broad-based Growth in 2014

Global Semiconductor Market Achieves Strong, Broad-based Growth in 2014

IHS Technology’s final market share results for 2014 reveal that worldwide semiconductor revenues grew by 9.2 percent in 2014 coming in just slightly below the growth projection of 9.4 percent based on preliminary market share data IHS published in December 2014. The year ended on a strong note with the fourth quarter showing 9.7 percent year-over-year growth.  IHS semiconductor market tracking and forecasts mark the fourth quarter of 2014 as the peak of the annualized growth cycle for the semiconductor industry.

Global revenue in 2014 totaled $354.5 billion, up from $324.7 billion in 2013, according to a final annual semiconductor market shares published by IHS Technology). The nearly double-digit percentage increase follows solid growth of 6.6 percent in 2013, a decline of 2.6 percent in 2012 and a marginal increase of 1.3 percent in 2011. The performance in 2014 represents the highest rate of annual growth since the 33 percent boom of 2010.

“While 2014 marked a peak year for semiconductor revenue growth, the health of both the semiconductor supply base and end-market demand, position the industry for another year of strong growth in 2015,” said Dale Ford, vice president and chief analyst at IHS Technology. “Overall semiconductor revenue growth will exceed 5 percent in 2015, and many component categories and markets will see improved growth over 2014.  The more moderate 2015 growth is due primarily to more modest increases in the memory and microcomponent categories.  The dominant share of semiconductor markets will continue to see vibrant growth in 2015.”

Intel maintained its strong position as the largest semiconductor supplier in the world followed by Samsung Electronics and Qualcomm at a strong number two and three position in the rankings.  On the strength of its acquisition of MStar, MediaTek jumped into the top 10 replacing Renesas Electronics at number 10.  The other big mover among the top 20, Avago Technologies, also was boosted by an acquisition, moving up nine places to number 14 with its acquisition of LSI in 2014.

Strategic acquisitions continue to play a major role in shaping both the overall semiconductor market rankings and establishing strong leaders in key semiconductor segments.  NXP and Infineon will be competing for positions among the top 10 semiconductor suppliers in 2015 with the boost from their mergers/acquisitions of Freescale Semiconductor and International Rectifier, respectively.

Among the top 25 semiconductor suppliers, 21 companies achieved growth in 2014.  Out of the four companies suffering declines, three are headquartered in Japan as the Japanese semiconductor market and suppliers continue to struggle.

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