Q3 sees semi supplier ranking shakeup as analysts look to strong 2007 finish

By Colleen Taylor, Contributing Editor -- Electronic News, 10/29/2007

Due in large part to a major surge in flash memory sales, Q3 saw a major shakeup in one analyst firm's ranking of the top 10 semiconductor suppliers.

According market researchers at IC Insights, Toshiba Corp. moved past Texas Instruments (TI) and ST Microelectronics to become the third largest semiconductor supplier in the world. The firm reported that Toshiba rode the coattails of a 46 percent sequential quarterly market surge during Q3 in NAND flash to post its own 40 percent quarter-over-quarter sales increase. This increase helped propel Toshiba to a third place ranking, its highest since being ranked as the second largest semiconductor supplier by IC Insights in 2000.

Also during Q3, chipmaker Advanced Micro Devices Inc. (AMD) moved into the top 10 ranking for the first time in its history.  The company posted both sequential and year-over-year sales increases during Q3.

Meanwhile, Taiwan-based foundry giant TSMC jumped one spot in Q3 from its spot in IC Insights full-year 2006 ranking after posting a substantial sequential sales increase during its quarterly report. And, the firm said, in spite of Q3 DRAM pricing weakness, Hynix Semiconductor Inc. took advantage of its strong NAND flash market share to move from 7th to 6th place in the ranking.

The top 10 listing consists of three U.S., three Japanese, two Korean, one European, and one Taiwanese company. 

Looking ahead through the end of 2007, IC Insights said it expects to see pricing stability return to the DRAM memory market, surging IC demand for PCs and high-end cellular phones, and a continuation of the seasonal rebound in overall semiconductor demand that began in August. "Together, these three factors are forecast to close out 2007 on a positive note for the major semiconductor suppliers," the firm added.