Top 10 Global Semiconductor Manufacturers in 2020

Market research firm Gartner recently released its 2020 revenue forecast for the semiconductor industry. According to Gartner's forecast, the revenue scale of global semiconductor manufacturers in 2020 will reach the US $449.838 billion, a year-on-year growth of 7.3%.

"At the beginning of 2020, the Coronavirus (Covid-19) pneumonia outbreak was thought to hurt all end device markets, but the actual impact was minimal," said Andrew Norwood, research vice president at Gartner. Certain segments of the auto, industrial and consumer markets have been hit by a drop in business and consumer spending. However, the market benefits from home isolation, which dramatically increases the time spent at home and online."

"Server demand is strong as super-scale customers (accounting for more than 65% of server demand in 2020) rush to add capacity to cope with additional demand during the lock-in period in the first half of 2020. Besides, strong corporate and consumer demand for PCs will follow. The increase in working and learning from home led to strong growth in CPU, NAND flash memory and DRAM."

In the report, Gartner also revealed the top 10 semiconductor vendors in 2020.

As the chart below shows, Intel continues to lead the top 10 semiconductor companies, with revenue expected to exceed $70 billion in 2020, up 3.7%. Among them, the top 10 companies are Intel, Samsung Electronics, SK Hynix, Micron, Qualcomm, Broadcom, TI, MediaTek, KOIXIA and Nvidia.

Thanks to the growth of its core client and server CPU businesses, Intel's revenue in 2020 will reach $70.244 billion, up 3.7% year on year, and its market share will reach 15.6%, maintaining its top position.

In second place was Samsung Electronics, whose semiconductor business generated $56.197 billion in revenue in 2020, up 7.7 percent year on year, giving it a 12.5 percent market share.

In third place, SK Hynix's revenue in 2020 was the US $25.271 billion, up 13.3% year on year, with a market share of 5.6%. It was followed by Micron, Qualcomm, Broadcom, TI, MediaTek, KOIXIA and Nvidia in fourth to tenth place.

It can be seen that among the top ten semiconductor manufacturers, memory chip manufacturers account for the highest proportion. Samsung, SK Hynix, Micron and KOIXIA are all memory chip manufacturers. Then there are PC/ phone chipmakers, such as Intel, Qualcomm and MediaTek.

"At the beginning of 2020, the Novel Coronavirus (Covid-19) pneumonia outbreak was thought to have a negative impact on all end device markets, but the actual impact was minimal," said Andrew Norwood, research vice president at Gartner. Certain segments of the auto, industrial and consumer markets have been hit by a drop in business and consumer spending. However, the market benefits from home isolation, which dramatically increases the time spent at home and online."

"Server demand is strong as super-scale customers (accounting for more than 65% of server demand in 2020) rush to add capacity to cope with additional demand during the lock-in period in the first half of 2020. Besides, strong corporate and consumer demand for PCs will follow. The increase in working and learning from home led to strong growth in CPU, NAND flash memory and DRAM."

Gartner identified memory as the best-performing market for 2020, thanks to the growth of servers and demand for PCs and ultra-mobile devices (shifting away from homework and learning). Global memory revenue increased by $13.5 billion in 2020, accounting for 44% of total semiconductor revenue growth in 2020.

Among memory, NAND flash memory performed best, with revenue up 23.9 percent to $52.8 billion, up to $10.2 billion from 2019. Limited supply in 2020, which led to a spike in prices in the first half of 2020. Despite strong demand from super-scale customers and PC OEMs, the impact of the outbreak did lead to an oversupply situation in the second half of 2020, which dampens overall annual revenue growth.

It is worth mentioning that among the top 10 manufacturers, MediaTek has the largest year-on-year growth, with a 38.3% year-on-year growth in revenue in 2020, reaching $11.08 billion. It is also the first time since 2017 that MediaTek has entered Gartner's list of the world's top 10 semiconductor companies (ranked No. 10 in 2016) at No. 8.

On January 12, MediaTek announced that its consolidated revenue for 2020 was NT $322.146 billion (about US $11.51 billion at current exchange rates), a 30.84 percent increase from 2019 and a record high. On Jan. 14, MediaTek celebrated, announcing that it had achieved a target of $10 billion in revenue by 2020 and that it would pay out more than $1.7 billion in bonuses of 100,000 New Taiwan dollars each to employees across the group, including its subsidiaries.

In addition to MediaTek, Qualcomm's revenue grew 31.5 percent year-on-year to $17.906 billion this year, surpassing Broadcom and ranking fifth in the world.

Strong sales of 5G smartphones are driving strong growth for semiconductor companies such as Qualcomm and MediaTek in 2020, despite the overall slowdown in the smartphone market, Gartner said. 5G growth offset the weakness in system unit growth through an increase in the number of semiconductors, including higher prices, including ASP 5G chipsets as well as other RF front-end components and power management ICs.

In 2020, Nvidia's revenue grew 37.7% year over year to $10.095 billion, ranking No. 10. It is also the first time that Nvidia has entered Gartner's list of the top 10 semiconductor companies worldwide. Of the top 10 semiconductor makers, nine maintained year-over-year revenue growth, with only Texas Instruments (TX), at No. 7, reporting a decline of 2.2%.






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