IC industry will continue to prolong the burning of "integration and madness" leading chip makers market share will be pulled higher

The total market share of the top five chip manufacturers in the world in 2017 accounted for 43% of the overall market; the trend of the market starting from ten years ago and concentrating on a small number of manufacturers has become increasingly apparent... In view of the fact that the semiconductor industry has been in recent years The trend of consolidation and consolidation of the market in the hands of a few manufacturers has become increasingly apparent. It does not seem to be surprising. According to the latest report of market research firm IC Insights, the combined sales of the top five semiconductor suppliers in the world accounted for about 43% of the overall market in 2017; this figure was increased by 10% compared with ten years ago. The agency pointed out that last year the top five global chip suppliers (excluding foundries) were Samsung, Intel, SK Hynix, Micron, and Broadcom. Among the top five semiconductor suppliers, memory manufacturers accounted for more than half of the total, which shows that the memory sector in 2017 was an astonishing performance. It also “contributed” to the trend of the market focusing on the hands of a few more manufacturers. Sales growth rates of Samsung, Hynix and Micron in 2017 were all over 50%, mainly because the DRAM and NAND flash memory markets grew by 77% and 47% respectively. The upsurge of the memory market will eventually subside, and most market observers expect this market's growth to slow this year. However, IC Insights believes that the “integration and madness” of the IC industry will continue to increase the market share of leading chip manufacturers. Raise to a higher level. The trend of the big chip market and the large-scale consolidation of Evergrande are actually the products of the same thing: that is, in the semiconductor industry, the difference between “rich people” and “poor boy”. Rob Lineback, senior analyst at IC Insights, said in an interview with EE Times that the increase in the market share of large chip suppliers is also due to “large companies often have deeper pockets and financial resources and can continue to make technology more expensive. Market expansion and growth, and survival in areas where small and medium-sized chip makers may not be able to compete for a long time.” According to Lineback, the IC market is concentrated in the hands of a few manufacturers and is a reversal of the industrial ecology that began to boom in the 1980s. At that time, there was no fabless factory. The rise of the cooperation model between semiconductor manufacturers and foundries has led to an increase in the number of small and medium-sized chip design companies; the current situation is back to the early stage of IC industry development in the 1970s, when the world’s top five to ten chip manufacturers also occupied most of the market. These vendors are large vertically integrated electronics vendors. Lineback said: "We believe that after the mid-1980s, there were more chip vendors taking market share because of the success of the fabless movement. About twenty years later, we began to see the launch of larger chip vendors. The expansion of the consolidation and market expansion is due to the higher cost of competition in many areas and the rise of industry mergers and acquisitions in ten years."

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