Global chip revenue to go down in 2008

Worldwide semiconductor revenue won't be going up this year, according to preliminary data from iSuppli. The market research firm predicts a 2% decline, which it attributes in large part to the poor performance of memory chip suppliers—revenue from memory IC sales will reportedly dip 16.9% this year. Without the memory market, global semiconductor revenue would actually rise by 2%, iSuppli says.

Out of the biggest memory IC suppliers, Qimonda should be the hardest hit with a 40.7% decline in revenue. Both Hynix and Nayna will see 29.1% slumps, and Samsung (both the world's biggest memory supplier and the second-biggest semiconductor maker) should see its revenue fall by 9.1%. iSuppli's Dale Ford comments, "About the only good thing that can be said about the 16.9 percent decline in memory revenue in 2008 is that it pales in comparison to the 48.2 percent plunge in 2001."

That said, iSuppli points out that other chipmakers won't necessarily fare any better. The research firm expects six of the world's top 10 semiconductor suppliers—including Texas Instruments and Renesas—to suffer revenue drops this year.

Finally, according to iSuppli's preliminary semiconductor supplier rankings, AMD will slip out of the top-10 list into 11th place in 2008. The company made it into the top 10 in 2006, but iSuppli has been predicting since last year that AMD would fall back. Intel remains in first place, followed by Samsung, Texas Instruments, and Toshiba.

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