The unprecedented wave of consolidation in the industry has boosted the top 25 semiconductor vendors' combined revenue by 10.5% in 2016, according to market research firm Gartner.

Intel retained its top position as the largest semiconductor manufacturer and grew its semiconductor revenue 4.6% in 2016, followed closely by Samsung Electronics, which continued to maintain the No. 2 spot with 11.7% market share.

Consolidation continued to play a major role in the market share rankings, with several large companies growing through acquisitions, according to Gartner. Merger and acquisition activity among the major vendors in 2016 included Avago Technologies' acquisition of Broadcom, On Semiconductor's acquisition of Fairchild Semiconductor, and Western Digital's acquisition of SanDisk. The largest mover in the top 25 was Broadcom, which moved up 12 places in the market share ranking.

"If we adjust for this M&A activity by adding the revenue of each acquired company to the revenue of the acquirer for both 2015 and 2016 where necessary, then the top 25 vendors would have experienced a 1.9% revenue increase, and the rest of the market would have increased by 4.6%," said James Hines, research director at Gartner.

Global semiconductor revenue totalled $343.5 billion in 2016, a 2.6% increase from 2015 revenue of $334.9 billion, according to Gartner.

"The semiconductor industry rebounded in 2016, with a weak start to the year, characterised by inventory correction, giving way to strengthening demand and an improving pricing environment in the second half," said Hines. "Worldwide semiconductor revenue growth was supported by increasing production in many electronic equipment segments, improving NAND flash memory pricing and relatively benign currency movements."