Semiconductor Industry Sees Record Revenue Growth in 1999

Strategic Insights -

The worldwide semiconductor industry saw a 22% increase in earnings in 1999, surpassing the previous record set in 1995, according to a report by Dataquest Inc. The industry's total revenue reached a record-breaking $168.6 billion, a significant jump from the $138.7 billion in 1998. This growth is largely attributed to the increasing demand for Internet-related communications devices and the expanding market for DRAM chips.

Key Takeaways:

  • The semiconductor industry saw a 22% increase in earnings in 1999, reaching a record revenue level of $168.6 billion.
  • The growth is driven by the increasing demand for Internet-related communications devices and the expanding market for DRAM chips, which experienced a 41% increase over 1998 revenues.
  • Intel Corp. held the No. 1 industry position with revenues of $26.8 billion, followed by Japan's NEC Corp. with revenues of $9.2 billion.
  • The Asia/Pacific region, excluding Japan, posted the strongest revenue growth, with a 33% increase, while Japan saw a nearly 25% growth.
  • The memory segment, which includes DRAM chips, was influenced by the shortage of flash memory chips, prompting manufacturers to convert older facilities to build flash chips.

Statistics:

  • Total 1999 semiconductor revenues reached $168.6 billion, up from $138.7 billion in 1998.
  • The growth rate for the industry was 22% in 1999, surpassing the previous record set in 1995.
  • Intel Corp.'s revenue reached $26.8 billion in 1999, up from $22.8 billion in 1998.
  • NEC Corp.'s revenue in 1999 was $9.2 billion, representing a 5.5% market share.
  • Europe saw a 13% growth in revenue, the Americas showed slightly over 18% growth, and Japan saw a nearly 25% growth.
  • The Asia/Pacific region, excluding Japan, posted a revenue growth of almost 33%.

Sources:

  • Reuters
  • Dataquest Inc.
  • Gartner Group Inc.
  • Newsbytes.com