Chip sales grew 1.5% in 2016, Gartner says

The chip industry beat expectations with growth expected to continue in 2017.

February 01, 2017

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The chip industry beat expectations with growth expected to continue in 2017.

2016 Chip sales leaders based on revenue in billions of dollars. Source: EE Times

Global chip revenue increased by 1.5 percent in 2016 as a late-year surge enabled the semiconductor industry to avoid widely anticipated contraction, according to market research firm Gartner Inc.

Total semiconductor sales totalled $339.7 billion last year, up from $334.8 billion in 2015, according to Gartner's estimates. Combined sales for the top 25 chip vendors increased 7.9 percent compared to 2015, accounting for 75.9 percent of the market.

Adrian Blanco, a senior research analyst at Gartner, said that 2016 chip sales got off to a slow start due to inventory burn off, but picked up in the second half of the year, thanks to inventory replenishment and improved pricing.

"Overall, semiconductor revenue for the second half of the year was much stronger than the first half, reflecting the strengthening memory market and continued inventory replenishment, as well as inventory build for both the iPhone 7 and the holiday season," Blanco said.

To read the full article, go to EETimes.

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