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Intel grabs record share of growing chip market

Gartner reports that Intel and Qualcomm showed great gains in 2011

As global semiconductor revenue hit $306.8 billion in 2011, Intel grabbed its biggest bite of the chip market to date.

Worldwide semiconductor revenue was up $5.4 billion, or 1.8%, in 2011 compared with 2010, according to a report from Gartner Inc. on Tuesday.

And while a revenue gain in the overall market is good news in a sluggish economy, the brightest spot came for Intel .

The world's largest chip maker marked a 20.7% revenue gain, easily keeping Intel in the top market share position for the 20th consecutive year.

Intel also had its highest-ever market share in 2011 at 16.5%, Gartner reported, topping the 16.3% market share that Intel recorded in 1998.

Samsung was second with an 8.9% market share. While the company was in the second-place spot, it did not make the kind of year-over-year gains that Intel did. Samsung recorded only a 1% increase from 2010.

In the third spot, Toshiba faired even worse, showing a year-over-year decline of 4.8%. For 2011, Toshiba held 3.8% of the global market share. Texas Instruments was fourth, also with 3.8% and Renesas Electronics was fifth with 3.5%.

While Qualcomm grabbed the number six spot in 2011, with 3.3% of the global market share, the company showed the biggest increase among all the chip makers. Between 2010 and 2011, Qualcomm had a 38.8% gain, Gartner noted.

Last month, Gartner said the semiconductor industry is on the brink of a rebound this year.

"The semiconductor industry is poised for a rebound starting in the second quarter of 2012," Gartner analyst Bryan Lewis said in a statement. "The inventory correction is expected to conclude this quarter, foundry utilization rates are bottoming, and the economic outlook is stabilizing."

Sharon Gaudin covers the Internet and Web 2.0, emerging technologies, and desktop and laptop chips for Computerworld. Follow Sharon on Twitter at @sgaudin, on Google+ or subscribe to Sharon's RSS feed. Her email address is sgaudin@computerworld.com.

See more by Sharon Gaudin on Computerworld.com.

Read more about processors in Computerworld's Processors Topic Center.


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