IC Insights expects a wide range of growth rates among the worldwide top-20 semiconductor suppliers in 2012. Despite the close ongoing relationship between the two companies, Globalfoundries (31% increase) and AMD (17% decline) are forecast to be the "bookends" on a 48-point growth range for the top 20 semiconductor suppliers in 2012, the research firm noted.
The continued success of the fabless/foundry business model is evident when examining the top-20 semiconductor suppliers ranked by growth rate, IC Insights observed. The top five performers are expected to include three fabless companies - Qualcomm, Nvidia and Broadcom - and two pure-play foundries - Globalfoundries and TSMC, IC Insights said.
Sales from pure-play foundry Globalfoundries are expected to jump by a strong 31% in 2012, while fellow company TSMC will show a healthy 17% increase, IC Insights noted. Considering that AMD, the original "parent" and largest customer of Globalfoundries, is forecast to show a steep 17% sales decline in 2012, it is obvious that Globalfoundries' current spike in revenues is being driven mostly by its success in attracting new IC foundry customers such as STMicroelectronics, Freescale and Qualcomm, IC Insights pointed out.
As a result of its excellent performance this year, Globalfoundries is set to replace Elpida Memory and move into the top 20 ranking for the first time, rising from the 21st spot in 2011 to 15th place in 2012, IC Insight said.
Fabless supplier Qualcomm will register a 30% surge in sales in 2012, and move up three positions to replace Texas Instruments (TI) as the fourth largest semiconductor supplier, IC Insights predicted. In contrast, Freescale is forecast to register a 14% decline in semiconductor revenues in 2012, and drop down three positions from 16th in 2011 to 19th in the 2012 ranking, IC Insights observed.
The top-20 semiconductor suppliers' combined sales will total about US$3.2 billion in 2012, down 1%, while the total worldwide semiconductor market is forecast to see a 2% decrease, according to IC Insights.
In addition, IC Insights noted that three pure-play foundries will be in the top-20 ranking of leading semiconductor suppliers in 2012. The foundries' combined sales for 2012 are expected to log a 16% increase - quite impressive considering the expected 2% decline in the 2012 worldwide semiconductor market, IC Insights said. With the continued success of the fabless companies as well as the strong movement by many IDMs to the fab-lite business model, IC Insights expects the IC foundries to witness very strong demand for their services over the next few years.
