Contract chip manufacturing growth slows in 2007

Taiwan Semiconductor Manufacturing Co. tops list.

Global revenue growth in the contract chip making business slowed in 2007 as a chip glut early in the year hit companies such as partners IBM Microelectronics and Chartered Semiconductor Manufacturing.

Global chip foundry revenue rose an anemic 2.5 percent year-on-year in 2007 to US$22.2 billion, marking just the second time the segment has failed to outgrow the overall semiconductor industry, according to market researcher Gartner. Taiwan Semiconductor Manufacturing (TSMC) retained its lead as the world's biggest contract chip maker on revenue of US$9.83 billion, but its market share fell to 44.3 percent from 45.2 percent the previous year.

IBM Microelectronics, the contract chip making arm of IBM, and technology partner Chartered both saw revenue decline last year, according to Gartner. IBM Microelectronics posted a 12.1 percent decline in revenue to US$605 million, while Chartered's revenue dropped 5.4 percent to US$1.45 billion.

For Chartered, the decline was significant enough to send the company down in global rankings. Semiconductor Manufacturing International (SMIC) overtook Chartered for third place with US$1.55 billion in revenue. Chartered finished fourth, while United Microelectronics (UMC) retained its second place ranking with US$3.26 billion in revenue and 14.7 percent market share.

SMIC won 7 percent of the global contract chip market last year, compared to 6.5 percent for Chartered, Gartner said. The two companies have battled for third place for the past few years, changing places at least twice. Another change may be on the way.

"We do anticipate another change," said Gartner chip analyst Tan Kay-yang, by phone. Chartered's purchase earlier this year of a factory owned by Hitachi should push its revenue higher than SMIC's, helping it regain third place in 2008, Tan said.

"There will not be major changes in the top five this year aside from SMIC and Chartered," he added.

Top 10 contract chip makers in 2007

  1. Taiwan Semiconductor Manufacturing Co. Ltd.
  2. United Microelectronics Corp.
  3. Semiconductor Manufacturing International Corp.
  4. Chartered Semiconductor Manufacturing Ltd.
  5. IBM Microelectronics
  6. Vanguard International Semiconductor Corp.
  7. X-FAB Silicon Foundries NV
  8. Dongbu Electronics Co. Ltd.
  9. MagnaChip Semiconductor Ltd.
  10. Shanghai Hua Hong NEC Electronics Co. Ltd.
Source: Gartner.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?