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"Reorganised" Intel returns to semiconductor growth as market improves

"Reorganised" Intel returns to semiconductor growth as market improves

Intel saw a return to growth in 2014, following two years of revenue decline, with 4.6 percent growth, with the company reorganising itself into five new business units in 2014.

Worldwide semiconductor revenue totalled $339.8 billion in 2014, a 7.9 percent increase from 2013 revenue of $315 billion.

According to preliminary results by Gartner, the top 25 semiconductor vendors' combined revenue increased 11.7 percent, which was more than the overall industry's growth.

The top 25 vendors accounted for 72.1 percent of total market revenue, up from 69.7 percent in 2013.

"As a group, DRAM vendors outperformed the rest of the semiconductor industry," says Andrew Norwood, research vice president, Gartner.

"This follows the trend seen in 2013 due to a booming DRAM market that saw revenue increase 31.7 percent during 2014 as the undersupply and stable pricing continued.

"In contrast to 2013, which saw revenue decline in key device categories, including ASIC, discretes and microcomponents, all device categories saw positive growth in 2014, but none could match the growth of the memory market, which grew 16.9 percent in 2014.

"Excluding memory revenue, growth for the remainder of the market reached 5.4 percent, but this is much better than 2013 growth of 0.8 percent for nonmemory revenue."

Intel saw a return to growth in 2014, following two years of revenue decline, with 4.6 percent growth, with the company reorganising itself into five new business units in 2014, with the Datacenter Group continuing to be the most the stable unit for the company.

So much so that Intel is on pace to reach its goal of 40 million tablet processors in 2014, although these processors are being shipped at significantly discounted prices with incentives.

On the PC front, Intel continued to gain market share from AMD, and Gartner expects volume increases for both Intel's notebook and desktop platforms compared with 2013.

Intel has maintained the No. 1 market share position for the 23rd consecutive year, capturing 15.0 percent of the 2014 semiconductor market, down slightly from its peak of 16.5 percent in 2011.

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