NAND Flash Memory Markets to Rise by 28% in 2013 – IHS

Following a 2.5% decline in 2012, the global semiconductor market has regained its footing in 2013 with revenue set to expand by nearly 5% because of the strong performance of the memory sector.

Preliminary WW Ranking of Top 20 Suppliers of Semiconductors in 2013
(Ranking by Revenue in $Million)

* Significant impact on growth due to Intel’s acquisition of Fujitsu Semiconductor Wireless Products; IXYS acquisition of Samsung’s 4- and 8-bit microcontroller products; Broadcom’s acquisition of LTE-related assets from Renesas Electronics; and Micron’s acquisition of Elpida.

Global semiconductor sales in 2013 will amount to $317.9 billion, up 4.9% from $302.9 billion in 2012, according to preliminary estimates from the semiconductor value chain service at IHS, Inc.

Market growth is being driven by the strong expansion of DRAM and NAND flash memory markets, which are expected to rise by 35.0% and 27.7%, respectively, in 2013.

Partly because of its success in the booming DRAM and NAND markets, U.S.-based Micron Technology Inc. will grow by an industry-leading 109.2% in 2013, catapulting the company up the semiconductor market’s ranks to No. 4 in 2013, rising from No. 10 in 2012.

“Memory chips are coming to the rescue of the semiconductor business in 2013,” said Dale Ford, head of electronics and semiconductor research at IHS. “Solid pricing and expanding demand for DRAM and NAND in smartphones and tablets have caused revenue for these memory devices to surge. Without these two high-performing product segments, the semiconductor industry would attain zero growth this year.”

Big growth for Micron
Micron is expected to end the year with $14.2 billion in semiconductor revenue, more than doubling its $6.8 billion total in 2012. In addition to its success in DRAM and NAND, Micron’s growth in 2013 is being propelled by its acquisition of Elpida Memory.

Out of the more than 150 semiconductor suppliers tracked by IHS, no other company will grow more than Micron in 2013. Micron’s share of the total semiconductor market will more than double to 4.5% in 2013, up from 2.2% in 2012.

Also benefiting from the memory boom is SK Hynix of South Korea, whose chip revenue is on track to expand by 48.7% in 2013. The company will jump to No. 5 in the semiconductor market rankings in 2013, up from No. 7 in 2012. SK Hynix’s performance is all the more outstanding since it was entirely driven by organic sales growth-and not by any acquisitions.

Qualcomm closes in on market leaders
Qualcomm Inc.’s incredible success in the wireless world continues to drive it to the top of the semiconductor industry. The U.S. company is set to attain 31.6% semiconductor growth in 2013, causing it to gain 1.2 percentage points of share and take 5.5% of total semiconductor market revenue. No. 3-ranked Qualcomm’s strong growth in 2013 will allow it to narrow its market share gap with industry leaders Intel Corp. and Samsung.

Suffering semiconductor suppliers
Sony, Renesas Electronics, and Rohm Semiconductor are set to deliver disappointing results with expected declines of 28.1%, 15.3% and 14.3 percent, respectively. As a result, Renesas will drop all the way to No. 10, down from No. 6 in 2012, and Sony will fall to No. 15, declining from No. 11. Rohm Semiconductor will completely fall out of the ranks of the Top 20.

Texas Instruments and nVidia also are struggling in 2013 with the companies suffering declines of 5.5% and 5.6%, respectively.

Intel will maintain its status as the No. 1 semiconductor supplier, but its projected semiconductor revenue decline of 1.0% means it will drop from its historically high 15.7% share of the market in 2012 to 14.8% in 2013.

Wireless winning streak
Of the major application markets for semiconductors, the hot wireless segment will drive the largest increase in semiconductor consumption of chips in 2013. Semiconductor revenue from wireless communications products are projected to grow by 11.7% in 2013.

The next fastest-expanding application will be industrial electronics, with double-digit semiconductor sales growth of 10.7%.

Semiconductor revenues driven by consumer electronics products will decline, with a drop of 5.2 percent.

AsiaPac will lead all regions in terms of consumption of semiconductors with growth of 8.9% in 2013.  The Americas will not be far behind with a 5.0% increase. Japan will experience a decline of 7.9 percent.

Overall, 53% of the more than 150 companies tracked by IHS are expected to expand their semiconductor revenue in 2013, while 47% will decline.

Semiconductor winners and losers
Beyond the DRAM and NAND segments, other products that will yield healthy growth in 2013 are expected to be LEDs with 9.5%, complementary CMOS image sensors at 5.7%, standard logic up by 4.2%, sensors and actuators by 3.6% and analog application-specific integrated circuits with 3.5%.

Markets experiencing significant declines will be CCD image sensors, which are expected to plunge by 40.6%; specialty memory, with a 19.6% drop; digital signal processors, down by 16.5%; SRAM declining by 15.9%; NOR flash memory falling by 14.8% and logic ASICs, with an 11.6% decrease.