Communications and Technology Industry Research

Thanks to boom in DRAM and NAND memory sales, the global semiconductor market achieved the largest dollar increase in its history in 2010, according to market research firm iSuppli, now part of IHS (News - Alert) Inc.

As a result, worldwide semiconductor revenue amounted to $304 billion in 2010, up from $229.5 billion in 2009. This represents a growth of 32.5 percent for the year, said iSuppli.

Based on this market data, percentage growth was higher in 2001 than in 2010, when revenue rose by 36.7 percent. However, revenue grew by $74.5 billion in 2010, a record increase that shattered the previous benchmark expansion of $59.2 billion in 2001, reports iSuippli.

While many observers expected the semiconductor industry in 2010 to achieve a solid rebound following the deep drop of 2009, the actual growth far exceeded all expectations. The enormous expansion in semiconductor revenue was based on renewed demand for electronic equipment, such as computers, televisions and cell phones, argues iSuppli. Also, semiconductor sales in 2010 rose at more than three times the rate of electronics equipment revenue. This augmented growth is being driven by a range of multiplying factors, including inventory rebuilding, upward price pressure due to a supply/demand imbalance and an increase in the average semiconductor content of major electronic products, notes iSuppli.

The study shows that the semiconductor resurgence of 2010 was both broad and deep because every major category within the semiconductor market, with the exception of NOR flash and specialty memory, achieved double-digit revenue growth in 2010. In addition, despite ongoing economic turbulence and uncertainty, the semiconductor industry achieved six sequential quarters of growth through the third quarter of 2010. Thus, marking the longest period of continuous growth since 2004. Plus, the key DRAM and NAND flash memory market segments achieved 80 percent and 40 percent growth, respectively.

Out of 150 leading semiconductor suppliers tracked by iSuppli on a quarterly basis, an amazing 90 percent achieved revenue growth in 2010. The top five include Intel, Samsung (News - Alert), Toshiba, Texas Instruments, and Renesas Electronics. The tremendous growth in DRAM and NAND sales benefited the leading memory suppliers, allowing many to exceed the expansion of the overall semiconductor market in 2010, states iSuppli.