5 companies corner 41% semiconductor market

Article By : Vivek Nanda

Driven partly by M&A activity, fewer semiconductor companies are influencing a bigger share of the market, said IC Insights.

Not including foundries, IC Insights forecasts that semiconductor suppliers Intel, Samsung, Qualcomm, Broadcom, and SK Hynix will account for 41% of the market share in 2016. This represents a 9-point increase from the 32% share held by the five suppliers 10 years ago.

The firm forecasts that top 10 semiconductor suppliers will account for 56% market share in 2016, an 11-point swing from 45% in 2006. The top 25 companies in IC Insights’ list are forecast to account for around three-quarters of all semiconductor sales this year.

Following a surge in semiconductor merger and acquisition (M&A) agreements in 2015, the pace of transactions eased a bit in the first half of 2016. However, 2016 is now forecast to be the second-largest year ever for chip industry M&A announcements, thanks to three major deals struck in 3Q16 that have a combined value of $51 billion. These deals were SoftBank’s purchase of ARM, Analog Devices’ intended purchase of Linear Technology, and Renesas’ potential acquisition of Intersil.

[ICInsights Semicon Market Share (cr)]
Figure 1: 2016 forecast of semiconductor companies' worldwide market share, not including foundries. (Source: IC Insights)

With the surge in mergers and acquisitions expected to continue over the next few years, IC Insights claims that the consolidation will raise the shares of top suppliers even higher.

Subscribe to Newsletter

Leave a comment