Global semiconductor sales dip 5%

BANGALORE: Global semiconductor sales fell 5.4% on a year-on-year basis in 2008 and are expected to decline further in the current year, Gartner says. The worldwide semiconductor revenue slipped to $255 billion from $240.5 billion in 2007. The steep decline in the market in the final quarter of 2008, combined with the economic slowdown, signals far worse declines in 2009, Gartner said in a release.

���While sales held up fairly well in the first half of 2008, in the third quarter, the industry started to soften as the economy slowed, and by the fourth quarter, sales were deteriorating quickly, causing revenue growth to go into negative territory,��� said Peter Middleton, principal research analyst at Gartner. ���With the market heavily impacted by the recession, we can expect considerable market consolidation going forward.��� Intel held the number one position for the 17th consecutive year, increasing its market share to 13.3% in 2008, although it saw its revenue declining by 0.5%, a consequence of spinning off its NOR flash memory business.

The company outperformed the industry average on the strong performance of its notebook business, in which the company gained share throughout the year.

The best performer in 2008, among the top 10 in Gartner���s market share analysis, was Qualcomm, with growth of 15.3%, driven by a strong first three quarters of the year. But Qualcomm felt the impact of the economic downturn in the fourth quarter of 2008, as carriers and OEMs reduced their inventory of code division multiple access (CDMA)-based devices and chipsets.

Samsung, the No 2 vendor, saw its revenue declining 15% in 2008 with the company���s main product lines, DRAM and NAND flash experiencing sharp price declines caused by excess supply in the market during 2008. Toshiba, in the No. 3 position, saw its revenue decrease 10.3%, largely because its application-specific integrated circuit (ASICs) and application-specific standard products (ASSPs) for consumer, wireless and automotive electronics showed mild growth in early 2008, but the market went into free-fall in the second-half due to the global economic downturn.