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Date: 07-04-16

Global semiconductor revenue fell by around 2% in 2015

Due to severe cost pressure, semiconductor chip revenues in 2015 drop by 2 to 3%, also the launch of Windows 10 did not help PC market to get back to growth path. If somebody pinned too much hope on IoT, Still IoT market not Large enough to compensate for the falling revenues in PC market. The growth of competition among semiconductor vendors is higher than the new market opportunities. With SMIC and other Chinese-based foundries and fabless companies making advanced chips, China started garnering a bigger market share compared to past. The world's number one semiconductor chip maker Intel is also a now a foundry service provider. If you look at the volumes growth in the semiconductor market, it is significantly larger and it is no doubt a double-digit growth. The consumer electronics market focused chipmakers are now focusing more on the automotive market, where the infotainment segment is closely matches consumer electronics market in terms of technology, but the devises need to be more rugged and withstand higher temperature range. Market researcher Gartner reported worldwide semiconductor revenue declined 2.3 Percent in 2015 with revenues reaching $334.8 billion, according to its latest analysis. Gartner attributes the decline to slowing demand for key applications and currency fluctuations. Gartner finds the combined revenue of the top 25 semiconductor vendors fell by 0.5 percent during 2015, which accounted for 73.5% of the market. The total revenue rest of the vendors fell by 6.9 percent. Intel's 2015 revenue fell by 1.2 percent, according to Gartner.

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