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With its highest growth rate in 14 years, the global semiconductor industry topped $429B in 2017

The semiconductor industry has enjoyed an explosive growth in 2017 and posted its highest recorded figure in 14 years. IHS Market states that the whole global semiconductor revenue increased 21.7% in 2017 and topped out at $429.1 billion.

2017 also saw Samsung replacing Intel as the number 1 manufacturer of semiconductors in 2017. SK Hynix comes at a close third. Among the 20 best suppliers, Micron and SK Hynix posted the highest year-to-year growth at 79.7% and 81.2% respectively. Increased semiconductor prices and high demand fueled the memory market and contributed to the growth of the manufacturers as a whole.

In the fabless niche Qualcomm stays on top, followed closely by nVidia at the 2nd position. Among the 20 best suppliers, MLS posted the highest gains from the 20th up to the 15th spot according to IHS Market Ranking.

Memory integrated circuits proved to be the star of the industry growth in 2017, growing by 60.8% as compared to 2016. NAND rose up by 46.6% and DRAM grew 76.7%, the highest recorded growth in the 10-year span. High demand and increased prices led to the explosive growth.

IHS Markit Senior Director states that the transition from 2D to 3D NAND has put the industry into an imbalance in terms of supply and demand in 2017, which drove up the prices due to a relatively lower supply. In 2018 the balance has been corrected with the help of 3D NAND production which alleviates the hefty demand coming from mobile and SSD markets. Analysts are still hopeful that it could still be a record year for the NAND sector.

The previous year saw the semiconductor industry enjoy a 9.9% growth due to strong demand across regional, tech and applications platforms. Semiconductors for data processing applications grew up to 33.4% at the year’s end. Intel is the undisputed leader in this regard, with sales up to twice than that of its closest competitor, Samsung.

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