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Of the top ten semiconductor makers, only one posted a profit

The global semiconductor market was hard hit by the poor global economy. Nearly all of the largest makers of microprocessors are reporting losses for the previous quarter.

The latest numbers were released this week by market research firm iSuppli and predict that the revenue for the microprocessor market will plummet 12.4% in 2009. That is a loss of $32 billion compared to 2008. Despite the grim outlook for the year, things were not as bad as they could have been for the industry. The decline for the year was predicted to be over 20%.

iSuppli's Dale ford said, "There was little room for anything but pessimism after the industry suffered a sequential revenue decline of 21.4 percent in the fourth quarter of 2008 and an 18 percent drop in the first quarter of 2009. However, semiconductor sales rebounded smartly after that. … This strong rebound means 2009 will be much less painful than had been feared earlier in the year."

The only semiconductor supplier in the top ten to post a profit was second place Samsung. What has helped Samsung post a profit is its memory business. Samsung is tops in both the NAND and DRAM memory market. These markets are doing much better than the microprocessor market at this time.

Ford said, "Samsung is benefiting from its dominance in the memory market, whose performance was dramatically better than the semiconductor industry as a whole."

According to iSuppli's numbers, Qualcomm's revenue will remain flat thanks to its baseband chip market for cell phones.

AMD is looking at a revenue decline of 7.6% reports eWeek. Of the top ten suppliers of microprocessors, Sony posted the largest decline with 32.8% revenue decline for the year. Intel still has a massive lead in the computer CPU market with an 80.6% share.



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Re: Samsung
By Brandon Hill (blog) on 11/25/2009 10:26:50 AM , Rating: 4
I'm not surprised at all by Samsung. Apple has been hogging up all of Samsung's NAND memory for its iPods and iPhones. In addition, SSDs are starting to pickup the pace, so things should be looking good for them.




By gstrickler on 11/25/2009 2:29:28 PM , Rating: 2
quote:
What has helped Samsung post a profit is its memory business.
When is the last time you heard someone mention semiconductor memory as a significant source of profit? With the frequent supply gluts, cutthroat competition, etc. it's a market that's been hammered for most of the last 15 years.




Posting a profit
By applepye on 11/25/2009 2:55:36 PM , Rating: 2
Looking at the report, I don't think the analysis is correct. Samsung is the only company to post a greater profit than they did last year. Other semiconductor companies will still be profitable, just not as profitable as they were last year.




Find and replace?
By nineball9 on 11/25/2009 10:22:47 PM , Rating: 2
The original eWeek article is about semiconductors. Someone at DT repeatedly replaced "semiconductor" with "microprocessor", giving us nonsense phrases like "Of the top ten suppliers of microprocessors, Sony ..."




Intel
By Jansen (blog) on 11/26/2009 12:06:01 PM , Rating: 2
Intel posted a profit in Q3, and would be profitable for the year if it wasn't for the EU fine and settlement with AMD.

http://www.dailytech.com/Intels+Strong+Q3+Results+...

http://www.dailytech.com/EU+Fine+Dings+Intels+Q2+E...

http://www.dailytech.com/Intel+AMD+Settle+Antitrus...




Edit fail
By futrtrubl on 11/25/09, Rating: 0
"This is about the Internet.  Everything on the Internet is encrypted. This is not a BlackBerry-only issue. If they can't deal with the Internet, they should shut it off." -- RIM co-CEO Michael Lazaridis




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