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AMD to become seventh largest chip manufacturer in 2006, says iSuppli |
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Dec 04, 2006 at 04:40 PM |
 In iSuppli Corp's preliminary chip manufacturer rankings the market research firm is projecting that Advanced Micro Devices, Inc. (AMD) will have revenue growth of approximately 90 percent in 2006 and enter the TOP 10 rankings for the first time in its history at number seven (see chart below).
AMD's revenues in 2006 are expected to increase to $7.5 billion, up $3.6 billion from $3.9 billion in 2005, according to iSuppli. AMD has seen a strong rise in demand for its microprocessors (up 37.5 percent) in 2006 and had been able to penetrate Dell Computer for the first time. However, iSuppli noted that the acquisition of ATI Technologies in October was a more significant factor behind AMD's near-doubling in sales for the year.
Hynix Semiconductor, Inc. will also enter the TOP 10 at number eight after seeing a 32.5 percent increase in revenues in 2006. Hynix should reach revenues of $7.4 billion, up $1.8 billion from $5.6 billion in 2005, with DRAM revenue growing by $1.1 billion and its NAND flash revenue rising by $770 million.
In comparison, Samsung Electronics Co. Ltd. is expected to see its memory revenue increase by a smaller amount in 2006, at a $1.77 billion rise, according to iSuppli.
"This marks the first time in the six years iSuppli has been compiling annual semiconductor rankings that AMD and Hynix have rated among the top 10," said Dale Ford, vice president, market intelligence services for iSuppli. "This is an impressive accomplishment for both companies."..."Hynix's achievement of surpassing the much larger Samsung in terms of dollar growth in memory chip revenue in 2006 represents a considerable accomplishment," Ford said.
Texas Instruments will also see growth higher than the industry overall with a projected revenue growth of 19.4 percent in 2006. iSuppli is projecting industry growth of 9 percent for 2006.
Qualcomm and Broadcom, and Elpida and Spansion will all see revenue growth above the overall industry level that is above 25 percent for the year. Elpida in particuar is expected to leap to No. 20 in the rankings in 2006, up from 28 in 2005. Elpida's revenue will increase by $1.6 billion for the year representing nearly 89 percent growth as the company has expanded 300mm capacity and outsourcing to PSC of Taiwan.
Significantly, Intel Corp., Renesas Technology and NEC are the only semiconductor companies among 2005's top 10 to see their revenues decline in 2006. NEC will drop out of the top 10 due to its expected annual revenue decline of 0.2 percent.
Intel is projected to see its revenue decline by 11.6 percent in 2006. Intel's 2006 revenue decline is driven primarily by its falling revenue in microprocessors and NOR-type flash memory. The company's divestiture of its XScale mobile-phone semiconductor business to Marvell Technology Group Ltd. had a minor impact on its revenues, according to iSuppli. Intel's revenue decline will leave the company with its lowest share of the market since before 2000, at 12.1 percent
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