News Article
Fabless sector outperforms semiconductor market
The public fabless semiconductor sector generated $9.3 billion in revenues in Q2 2005, which equates to 7.9 percent sequential growth and 4.2 percent growth compared with the same quarter the previous year.
Fabless revenues outpaced global semiconductor revenues of $53.9 billion for the quarter, which reflected a decrease of 2.1 percent from the previous quarter.
Revenues from public fabless companies accounted for 17 percent of total semiconductor sales in Q2 2005. North America represented 76 percent of Q2 2005 fabless revenues, followed by Asia at 21 percent and Europe at 3 percent.
For the first six months of 2005, public fabless revenue totalled $17.9 billion, an increase of 6 percent over the first six months of 2004. Global semiconductor sales totalled $109.0 billion in the first half of 2005, a 6.5 percent increase over the same period the previous year.
"Overall, we expect the fabless industry to achieve seven percent growth in 2005," said Jodi Shelton, cofounder and executive director of the Fabless Semiconductor Association (FSA). "However, the top ten fabless companies are collectively on track to achieve double-digit growth this year. With these companies at $1 to $3 billion and more in sales, this is a tremendous feat."
New private capital for fabless companies increased in Q2 2005. Thirty-seven fabless companies raised $448.1 million in the quarter, an increase of 24 percent sequentially. Fabless companies represented 64 percent ($448.1 million) of the $703.65 million raised by the semiconductor industry. The total number of private fabless deals increased 23 percent from the previous quarter, but was down year-over-year by 19 percent.
Venture capitalists focused on early stage companies in Q2 2005, as 51 percent of all investments went to first and second rounds. Eight fabless companies received first round funding, totalling $60.3 million, while eleven received second round funding of $140.3 million. Collectively, these 19 start-ups closed $200.6 million; later stage fabless companies raised the balance of funds, totalling $247.5 million.
Three fabless companies completed initial public offerings in 2005, with one additional company having filed its registration statement.
The total mergers and acquisition activity for the first six months of 2005 was $2.5 billion, which exceeds the total amount in 2004. In Q2 2005 among the largest deals since Q4 2000 was Integrated Device Technology's acquisition of fabless Integrated Circuit Systems, totalling $1.7 billion. Another major deal was Pixel-works' acquisition of Equator Technologies, totalling $109 million.
Revenues from public fabless companies accounted for 17 percent of total semiconductor sales in Q2 2005. North America represented 76 percent of Q2 2005 fabless revenues, followed by Asia at 21 percent and Europe at 3 percent.
For the first six months of 2005, public fabless revenue totalled $17.9 billion, an increase of 6 percent over the first six months of 2004. Global semiconductor sales totalled $109.0 billion in the first half of 2005, a 6.5 percent increase over the same period the previous year.
"Overall, we expect the fabless industry to achieve seven percent growth in 2005," said Jodi Shelton, cofounder and executive director of the Fabless Semiconductor Association (FSA). "However, the top ten fabless companies are collectively on track to achieve double-digit growth this year. With these companies at $1 to $3 billion and more in sales, this is a tremendous feat."
New private capital for fabless companies increased in Q2 2005. Thirty-seven fabless companies raised $448.1 million in the quarter, an increase of 24 percent sequentially. Fabless companies represented 64 percent ($448.1 million) of the $703.65 million raised by the semiconductor industry. The total number of private fabless deals increased 23 percent from the previous quarter, but was down year-over-year by 19 percent.
Venture capitalists focused on early stage companies in Q2 2005, as 51 percent of all investments went to first and second rounds. Eight fabless companies received first round funding, totalling $60.3 million, while eleven received second round funding of $140.3 million. Collectively, these 19 start-ups closed $200.6 million; later stage fabless companies raised the balance of funds, totalling $247.5 million.
Three fabless companies completed initial public offerings in 2005, with one additional company having filed its registration statement.
The total mergers and acquisition activity for the first six months of 2005 was $2.5 billion, which exceeds the total amount in 2004. In Q2 2005 among the largest deals since Q4 2000 was Integrated Device Technology's acquisition of fabless Integrated Circuit Systems, totalling $1.7 billion. Another major deal was Pixel-works' acquisition of Equator Technologies, totalling $109 million.
