AMD's revenue jumps 91.6% for 2006, Intel witnesses a 11.1% decline

The latest numbers for the semiconductor industry are in for 2006 and AMD was a company on the move according to the latest figures from iSuppli. AMD witnessed a sharp increase in revenue thanks to its acquisition of ATI Technologies and its booming chips sales.

AMD's revenue for 2006 was $7.5 billion USD compared to $3.9 billion USD for the previous year. Total revenue for the top 25 players in the semiconductor industry was up 9.3% in 2006 to $260 billion USD.

"For AMD, 2006 was the best of times as it achieved a whopping 91.6 per cent increase in revenue for the year, partly due to a major acquisition, but also because of strong gains in microprocessor market share," said iSuppli VP Dale Ford

While AMD saw large gains, Intel saw an 11.1% decrease in revenue for 2006 compared to 2005. Revenue was reported at $31.5 billion USD for 2006 as opposed to $35.5 billion USD for 2005. Intel's performance, however, was still enough to keep it in first place by a large margin over second place Samsung Electronics.

"2006 was the worst of times for Intel," continued Ford. "The revenue decline, due to Intel's bleak performance in its core PC microprocessor and Flash memory businesses, erased nearly all the company's sales gains from its strong year in 2005.”

Other strong performance during 2006 included South Korea-based Hynix and Japan's Elpida. Hynix saw it 2006 revenue jump 41.5% to $7.8 billion which also bumped its ranking from 11th place to 7th place. Elpida posted a remarkable 98.6% gain to $3.5 billion as it climbed from 28th place to 19th place.

"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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