Worldwide semiconductor revenues totaled US$343.5 billion in 2016, a 2.6% increase from 2015 revenues of US$334.9 billion, according to final results calculated by Gartner.
The world's top-25 semiconductor vendors' combined revenues increased 10.5%, a significantly better performance than the overall industry's growth; however, most of this growth resulted from merger and acquisition (M&A) activity, Gartner indicated.
"The semiconductor industry rebounded in 2016, with a weak start to the year, characterized by an inventory correction, giving way to strengthening demand and an improving pricing environment in the second half," said James Hines, research director at Gartner. "Worldwide semiconductor revenue growth was supported by increasing production in many electronic equipment segments, improving NAND flash memory pricing and relatively benign currency movements."
Intel retained its No. 1 position as the largest semiconductor manufacturer and grew its semiconductor revenues 4.6% in 2016, Gartner said. Samsung Electronics continued to maintain the No. 2 spot with an 11.7% market share
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