December 2, 2011 — Intel Corp.’s semiconductor market dominance has been eroded for several years by Samsung Electronics Co. Ltd., but reversed this trend in 2011. Acquisition played a key role, not just for Intel, but for 5 of the other top-20 semiconductor chip companies, says analyst firm IHS.

Intel’s 2011 semiconductor revenues will hit $49.7 billion, up 23% from $40.4 billion in 2010, according to the IHS iSuppli Semiconductor Value Chain Service. Intel is on pace to outgrow the semiconductor sector, increasing its market share to 15.9% (a gain of 2.7 percentage points over last year).

Samsung, ranked second in the world, falls to about 6.5 percentage points below Intel. Samsung had closed the gap with top-ranked Intel to 3.9 percentage points in 2010. Samsung’s revenue grew 3% in 2011.

Intel derives most of its semiconductor revenue from selling microprocessors (MPU) and NAND flash memory — two of the hottest segments of the chip industry in 2011. These areas are set to generate 15-20% revenue growth this year. Its acquisition of Infineon Technologies AG’s wireless solutions business was also a positive action for revenues. "Intel achieved success on all fronts," even in a challenging semiconductors sales year with Japan and Thailand’s natural disaster impacts, said Dale Ford, IHS.

Samsung is the world