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
quote: AMD's share of the profits in the marketplace is essentially zero, as they continually lose money
quote: Intel is vastly profitable and sitting on billions in cash
quote: Intel has higher margins and piles of cash
quote: If it wanted to, it could easily afford to sell processors at manufacturing cost for 2-3 years
quote: Intel won't be hurting anytime soon - their fab capacities are several times AMD's AND they have the current *best* CPU architecture - Core
quote: AMD's PC microprocessor revenue rose by 35.5% in 2006 and its market share in that product segment increased to 16.1%, up 5 percentage points from 11.1% in 2005.
quote: How then do you account for the deep price cuts Intel just made and the cuts they will make again in a few months?
quote: AMD ATI chipset development continues for Intel platforms
quote: Whats good for your company not necessarily is good for all-
quote: *This should clear anything (ideas) you have about Fusion.
quote: Their graphics division will slowly begin to outpace Nvidia.
quote: I love AMD
quote: Meanwhile, AMD in 2006 gained PC microprocessor market share at Intel's expense. AMD's PC microprocessor revenue rose by 35.5% in 2006 and its market share in that product segment increased to 16.1%, up 5 percentage points from 11.1% in 2005.