Japanese suppliers share to shrink to only 14 percent

July 12, 2007 — /Report by IC Insights/ — SCOTTSDALE, AZ — Figure 1, shown below, shows the ebb and flow of worldwide IC sales (including foundry sales) by company headquarters location from 1982 through 2006 and a forecast for 2011. As shown, in 2006, IC companies headquartered in the Americas region held almost half of the worldwide IC sales marketshare, about the same share as 21 years earlier in 1985.

After reaching a high of 51 percent in 1988, the Japanese IC suppliers have displayed a steady decline in marketshare. In fact, in 2006, the Japan-headquartered companies’ share dropped to only 17 percent of the IC market. Even with the success of Toshiba in flash memory, IC Insights believes that the Japanese companies in total will continue to lose IC marketshare over the next five years (to a 14 percent share in 2011).

It is amazing how consistent the IC industry marketshare of the European companies has been over the past 24 years. As shown, since 1982, the European companies have always held 8 to 10 percent of the worldwide IC market. IC Insights believes that the European companies will stay in this narrow range through 2011.

The Asia-Pacific IC supplier segment is primarily composed of Taiwanese, South Korean, and Chinese companies. As was shown, the Asia-Pacific companies have grown from holding only 2 percent of the IC market in 1985 to 26 percent in 2006. In fact, the Asia-Pacific companies’ IC marketshare in 2006 was almost equal to the combined shares of the Japanese and European companies. Because of the large growth forecast for the foundry industry, a segment in which many Asia-Pacific companies are heavily involved, IC Insights believes that the Asia-Pacific companies will continue to gain marketshare and represent almost one-third (32 percent) of worldwide IC sales in 2011.

Source: IC Insights

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