According to IC Insights, TSMC moved into the fourth position in the 1H06 Semiconductor Suppliers Ranking. TSMC, a pure-play foundry, was ranked eighth in the full-year 2005 listing. Further illustrating the success of the foundry business model, for the first time ever a fabless semiconductor supplier (Qualcomm) moved into the top 15 ranking. In total, the top 15 semiconductor companies’ sales increased only 1% in 2Q06 as compared to 1Q06.
The top three positions (Intel, Samsung, TI) are highly unlikely to change when the full-year 2006 results are posted. However, the number 4-6 positions are truly “up for grabs” this year. In 1H06, less than $60 million separated the fourth ranked supplier, TSMC, from the sixth ranked company, ST. There will also be stiff competition for the tenth spot between Freescale and Philips.
One of the hottest applications for semiconductors in the first half of 2006 was for cellular phones. IC Insights forecasts that worldwide cellular phone shipments in 2006 will reach about 950 million handsets, up 18% over 2005. CDMA/WCDMA semiconductor supplier Qualcomm took advantage of the strong cellular phone market to move into the 1H06 top 15 ranking. IC Insights estimates that Qualcomm’s full-year 2006 semiconductor sales will reach at least $4.5 billion, up 30% from 2005.
Source: IC Insights