Worldwide semiconductor revenues grow 13% in 2018, says Gartner

Modified Time:

1/21/2019 4:33:00 PM

  1. Worldwide semiconductor revenues totaled US$476.7 billion in 2018, a 13.4% increase from 2017, according to preliminary results by Gartner. Memory strengthened its position as the largest semiconductor category, accounting for 34.8% of total semiconductor revenues, up from 31% in 2017.

"The largest semiconductor supplier, Samsung Electronics, increased its lead as the No. 1 vendor due to the booming DRAM market," said Andrew Norwood, VP and analyst at Gartner. "While 2018 continued to build on the growth established in 2017, the overall gains driven by memory were at half the 2017 growth rate. This is attributed to memory entering a downturn late in 2018."

The combined revenues of the top-25 semiconductor vendors increased by 16.3% during 2018 and accounted for 79.3% of the market, outperforming the rest of the market, which saw a milder 3.6% revenue increase. This is due to the concentration of the memory vendors in the top-25 ranking, Gartner noted.

        "2019 will be a very different market from the previous two years," said Norwood. "Memory has already entered a downturn, there is the looming trade war between the US and China, and mounting uncertainty about the global economy."

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