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AMD jumps into top-10 of world's largest semiconductor companies

By - Source: Tom's Hardware | B 0 comment
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El Segundo (CA) - Surging microprocessor sales as well as the acquisition of ATI have made AMD an official member of the world’s ten largest chip manufacturers, according to a report released today by iSuppli. AMD checks in at #7, while Intel is seeing double-digit declines in revenue.

More than a year of strong revenue growth as well as a challenging acquisition of graphics chip maker ATI are handing AMD an early Christmas present. At least according to market research firm iSuppli, AMD leaped deep into the top-10 of semiconductor manufacturers in 2006. The company jumped from position 15 in 2005 to 7 with a global market share that is estimated at 2.9%.

Revenues have grown from $3.9 billion in 2005 to an expected $7.5 billion in 2006. Sales for the first nine months (excluding results from the newly acquired graphics division formerly known as ATI) were $3.9 billion, an increase of about 18% over the same period in 2005.

Intel, on the other hand, appears to be stabilizing a free fall of its market share in the ranking. Due to a shortfall in microprocessor and NOR Flash sales that were highlighted by s strong 2005 result, Intel’s market share dropped by almost 13% to about 11.4% in the second quarter of this year - the firm’s lowest market share since 2000. For the entire year of 2006, iSuppli estimates Intel to achieve chip revenues of about $31.4 billion, which would be an 11.6% decline over 2005 and a market share that decreases from more than 13% to 12.1%. According to iSuppli, the company’s sale of its Xscale mobile-phone semiconductor business to Marvell Technology Group "had a relatively minor impact on its revenue compared to its travails in microprocessors and NOR."

Samsung, ranked #2, continued to make inroads on Intel with revenues climbing 11.6% to $19.2 billion, resulting in a market share of 7.2%. Other noteworthy manufacturers included Texas Instruments (#3, 19.4% revenue growth), which holds 5.0 market share, Toshiba (#4, +12.0%) at 3.9% and ST Microelectronics (#5, +11.8%) at 3.8%. Hynix, previously ranked on #11, also made the jump into the top-10 : The company is listed on position 8 with 2.8% market share.

The two companies that dropped out of the top-10 listing are NEC, which saw its revenues decline by 0.2% as well as Infineon, which spun off its DRAM and Flash business to Qimonda and lost 37.5% of its 2005 sales.

iSuppli confirmed initial reports about a strong semiconductor industry and said that it has revised its revenue forecast. The firm believes that sales will end up at about $258.5 billion, up 9% from $237.3 billion in 2005.

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