The Smartphone IC Market is One of Few Bright Spots as Overall Semiconductor Market Revenues Fall by Almost 5% in 2012,

  The Smartphone IC Market is One of Few Bright Spots as Overall Semiconductor
  Market Revenues Fall by Almost 5% in 2012, According to ABI Research

Business Wire

LONDON -- December 20, 2012

Overall worldwide semiconductor revenues will fall by almost 5% in 2012 to
just over $200 Billion. 15 of the top 20 semiconductor vendors including
Intel, Samsung, Texas Instruments, and STMicroelectronics will see their
semiconductor product revenues decline in 2012, compared with 2011. A handful
of companies have managed to buck this trend and outperform the overall market
and in many cases the continued growth of the smartphone market has been
crucial to their success.

“Revenues for platform and wireless connectivity IC used in smartphones grew
almost 30% year-on-year from 2011 to 2012 and this has helped companies such
as Qualcomm and Broadcom grow in a lackluster year for the overall
semiconductor market,” said Peter Cooney semiconductor practice director.
“Competition in this market is no doubt fierce but those with a strong market
position are very well rewarded.”

Revenue growth will not continue unabated, integration both in platform ICs
and connectivity ICs will be a negative factor but with many high profile
companies exiting the market there is still a strong potential for revenue
growth for the dominant suppliers. 13% revenue growth is expected in 2013 but
this will slow to single-figure growth from 2014 onwards.

“In the past few years we have seen many once dominant players leave the
mobile handset IC market,” added Cooney. “Freescale and Texas Instruments both
exited to focus on more industrial markets and STMicroelectronics recently
announced that it will pull out of its joint venture with Ericsson despite
increasing design wins for ST-Ericsson’s Thor and NovaThor products. The exit
of these high profile players is indicative of the strong competition in the
handset IC market, the moves by OEMs such as Samsung and Huawei to vertically
integrate shows that competition can only increase.”

These findings are part of ABI Research’s Mobile Device Semiconductors

ABI Research provides in-depth analysis and quantitative forecasting of trends
in global connectivity and other emerging technologies. From offices in North
America, Europe and Asia, ABI Research’s worldwide team of experts advises
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