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Intel regains dominance in semiconductor market

Posted: 07 Dec 2011     Print Version  Bookmark and Share

Keywords:semiconductor market  market share  acquisition 

According to IHS iSuppli market report, Intel is all set to regain its leadership position in the overall semiconductor market. "After three years of seeing its dominant position in the global semiconductor market whittled away by aggressive competition from Samsung Electronics, Intel is set to reverse the trend in 2011."

The market research firm stated that due to the company's strong sales and its acquisition of Infineon's wireless solutions business, it will enjoy a bigger gap on number two player Samsung Electronics Co.

Samsung has dominated the market in the past three years, but Intel is on track to record sales of Rs.2.23 lakh crore ($49.7 billion) this year, up 23 per cent from last year, IHS noted. This will allow the U.S.-based chip maker to outpace the broader sector and increase its market share to 15.9 per cent from 13.2 per cent.

As a result, Intel will increase its lead over No. 2-ranked Samsung to 6.5 percentage points, ending a three-year period in which the South Korean rival narrowed its gap with Intel from a 6.5 percentage point margin in 2008 to a 3.9 point difference last year, IHS added.

Meanwhile, Samsung's revenue is expected to rise three per cent this year amid weakness in the DRAM market, as well as other memory segments. Other chip makers that benefited from acquisitions were Texas Instruments Inc., which rose one level to take third place and Qualcomm Inc., which is jumping three levels to No. 6. ON Semiconductor Corp. is expected to make the biggest leap, up seven levels to No. 19.

For more statistics and forecasts, click here.

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