Chip sales falter in Q2 as weak market looms, IHS iSuppli says

IHS iSuppli is predicting overall 2012 chip sales growth to be less than 1.4 percent when compared to 2011 revenue

Weak economies in the U.S. and Europe together with a slowdown in manufacturing in China hurt semiconductor sales during the second quarter this year, and the market will deteriorate further in the coming quarters as issues continue to plague chip suppliers, IHS iSuppli said in research released on Thursday.

Global chip sales during the second quarter totaled US$77 billion, a drop of 3 percent compared to sales during the second quarter of last year. Chip sales dropped for six of the top 10 suppliers, with semiconductor companies in Japan and Europe affected the most, according to research from IHS.

Economic concerns will continue to hurt chip suppliers for the rest of the year, said Dale Ford, senior director of electronics and semiconductor research at IHS, in a statement. IHS is forecasting 2012 semiconductor revenue growth to be less than 1.4 percent, which was the growth rate recorded in 2011.

Recent studies have also stated that less demand for PCs has slowed demand for components such as memory, which has also hurt semiconductor sales.

According to IHS, Intel retained its position as the top chip supplier, with sales of $12.01 billion, growing by just 3.1 percent and holding 16 percent market share. Samsung was in second place, with sales of $7.57 billion, growing by 5.8 percent year over year, with market share of 10.1 percent. While revenue for third-place Texas Instruments dropped 13 percent to $3.13 billion, the fastest growth rate was recorded by fourth-place Qualcomm, with sales growing 23.7 percent to $2.87 billion. Qualcomm's chips go into mobile devices like tablets and smartphones, which are fast-growing markets.

Region-wise, Japanese companies like Toshiba and Renesas recorded double-digit revenue declines, and revenue for the region overall declined by 4.6 percent year over year, IHS said. Studies from other research firms like IC Insights have also concluded that Japanese semiconductor firms are hurting, partly due to the contraction of the industry, including the acquisition of Elpida by U.S.-based Micron, and also due to the slowdown in demand for NAND flash, which has hurt Toshiba.

Sales for European semiconductor companies declined 8.3 percent, with companies such as STMicroelectronics and Infineon Technologies recording double-digit year-over-year revenue declines.

Agam Shah covers PCs, tablets, servers, chips and semiconductors for IDG News Service. Follow Agam on Twitter at @agamsh. Agam's e-mail address is agam_shah@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?