+44 (0)24 7671 8970
More publications     •     Advertise with us     •     Contact us
 
News Article

Semiconductor Industry Bucks Seasonal Trends

News
Shaun Teevens, Analyst at IHS Markit

Following a strong fourth quarter, the semiconductor industry experienced a better than historical decline of 1.8% in the first quarter (Q1) of 2017. Global revenue came in at $95.3 billion, down from $97.1 billion in the prior quarter. This was a significant improvement over Q1, 2016 when the semiconductor industry declined by 8.6%.

According to Walter Coon, director at IHS Markit, the memory markets continue to be a driving force of semiconductor revenue expansion, with record revenues for both DRAM and NAND in Q1, 2017. NAND supply/demand dynamics remain extremely tight, with a healthy demand from SSD and mobile applications exceeding constrained bit supply due to the industry transition from planar to 3D NAND technology. With supply constraints persisting across both DRAM and NAND as we move into the second quarter, the memory market is poised to set even more records going forward.

The automotive sector proved to be a key growth driver in the semiconductor industry once again, posting a 4.7% growth over last quarter. Growth in this sector is being driven by increasing chip content in cars and the push towards electric vehicles (EVs). Content expansion and share gains are being enjoyed by all top players as demand remains high. Maxim Integrated was the first to mention a possible slowdown towards the end of the second quarter, due to weakness in the Chinese and US EV markets. Texas Instruments and Cypress disagreed, however, expressing more optimistic outlooks for the coming quarter.

NXP remains the top semiconductor supplier in automotive applications, even after its recent divestiture of its Standard Products division, which included discrete, logic and power MOS devices for many automotive applications. This division now operates as a stand-alone company, called Nexperia, following its acquisition by Chinese financial investors Wise Road Capital and Beijing Jianguang Asset Management in February. Infineon ranks number two, attributing its double digit growth rate in this sector to the strength in China and Europe in terms of their EV and ADAS businesses.

Among the top 20 semiconductor suppliers, while Intel remains in the number one spot for semiconductor suppliers, Analog Devices and SK Hynix enjoyed the highest revenue growth quarter over quarter by 29% and 21.5% respectively. Analog Devices achieved growth through its purchase of Linear Technology, making it an even bigger analog industry powerhouse. SK Hynix was driven by average sales price increases in both NAND and DRAM markets, as supply in the memory market remains tight.

Purdue, imec, Indiana announce partnership
Resilinc partners with SEMI on supply chain resilience
NIO and NXP collaborate on 4D imaging radar deployment
Panasonic Industry digitally transforms with Blue Yonder
Global semiconductor sales decrease 8.7%
MIT engineers “grow” atomically thin transistors on top of computer chips
Keysight joins TSMC Open Innovation Platform 3DFabric Alliance
Leti Innovation Days to explore microelectronics’ transformational role
Quantum expansion
indie launches 'breakthrough' 120 GHz radar transceiver
Wafer fab equipment - facing uncertain times?
Renesas expands focus on India
Neuralink selects Takano Wafer Particle Measurement System
Micron reveals committee members
Avoiding unscheduled downtime in with Preventive Vacuum Service
NFC chip market size to surpass US$ 7.6 billion
Fujifilm breaks ground on new €30 million European expansion
Fraunhofer IIS/EAS selects Achronix embedded FPGAs
Siemens announces certifications for TSMC’s latest processes
EU Chips Act triggers further €7.4bn investment
ASE recognised for excellence by Texas Instruments
Atomera signs license agreement with STMicroelectronics
Gartner forecasts worldwide semiconductor revenue to decline 11% in 2023
CHIPS for America outlines vision for the National Semiconductor Technology Center
TSMC showcases new technology developments
Alphawave Semi showcases 3nm connectivity solutions
Greene Tweed to open new facility in Korea
Infineon enables next-generation automotive E/E architectures
Global AFM market to reach $861.5 million
Cepton expands proprietary chipset
Semtech adds two industry veterans to board of directors
Specialty gas expansion
×
Search the news archive

To close this popup you can press escape or click the close icon.
Logo
×
Logo
×
Register - Step 1

You may choose to subscribe to the Silicon Semiconductor Magazine, the Silicon Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: