News
U.S. Companies Still Hold Largest Share of Fabless Company IC Sales
Published: Mar 17,2017According to IC Insights that fabless IC suppliers represented 30% of the world’s IC sales in 2016 (up from only 18% ten years earlier in 2006). As the name implies, fabless IC companies do not have an IC fabrication facility of their own.
Automotive IC Marketshare Seen Rising to 10% by 2026: IC Insights Says
According to the IC Insights, automotive IC sales expected to post average annual growth of 13.4%; Communications and Computer segments remain largest applications...
Memory Upswing Returns, New Record High Expected in 2022
Fueled by economic recovery and the transition to a digital economy, memory IC sales are forecast to reach $180.4 billion in 2022, exceeding the previous record high set in 2018...
Figure depicts the 2016 fabless company share of IC sales by company headquarters location. As shown, at 53%, the U.S. companies held the dominant share of fabless IC sales last year, although this share was down from 69% in 2010 (due in part to the acquisition of U.S.-based Broadcom by Singapore-based Avago). Although Avago, now called Broadcom Limited after its merger with fabless IC supplier Broadcom became official on February 1, 2016, has fabrication facilities that produce III-V discrete devices, it does not possess its own IC fabrication facilities and is considered by IC Insights to be a fabless IC supplier.
IC insights noted that in 2009, there was only one Chinese company in the top-50 fabless IC supplier ranking as compared to 11 in 2016. Moreover, since 2010, the largest fabless IC marketshare increase has come from the Chinese suppliers, which held a 10% share last year as compared to only 5% in 2010. However, when excluding the internal transfers of HiSilicon (over 90% of its sales go to its parent company Huawei), ZTE, and Datang, the Chinese share of the fabless market drops to about 6%.
European companies held only 1% of the fabless IC company marketshare in 2016 as compared to 4% in 2010. The reason for this loss of share was the acquisition of U.K.-based CSR, the second largest European fabless IC supplier, by U.S.-based Qualcomm in 1Q15 and the purchase of Germany-based Lantiq, the third largest European fabless IC supplier, by U.S.-based Intel in 2Q15. These acquisitions left U.K.-based Dialog ($1.2 billion in sales in 2016) as the only Europe-headquartered fabless IC supplier in the fabless top 50-company ranking last year (Norway-based Nordic Semiconductor just missed making the top 50 ranking with 2016 sales of $198 million).
There is also only one major fabless Japanese firm—Megachips, which saw its sales increase by 20% in 2016 (8% using a constant 2015 exchange rate), one major South Korean fabless IC company (Silicon Works), and one major Singapore-based (Broadcom Ltd.) fabless supplier.
CTIMES loves to interact with the global technology related companies and individuals, you can deliver your products information or share industrial intelligence. Please email us to en@ctimes.com.tw
2377 viewed