2 WORLDWIDE IC VENDORS OVERVIEW Figure 2-1 provides a breakdown of worldwide IC sales by North American, Japanese, European, and Rest-of-World (ROW) companies for 1975-1995. As can be seen, sales by North American companies were overwhelmingly dominant in the mid-1970’s. However, by the mid-1980’s the majority of the world’s IC sales were about evenly split between North American and Japanese companies. By 1990 the Japanese had increased their share of worldwide IC sales to 48 percent, but in 1992 Japan’s economy weakened causing their share to begin falling. A persistent econom- ic slump in the following years coupled with the Koreans’ success in the MOS memory market caused the Japanese share to continue falling. 80 70% 70 63% 60 50 48% 46% 43% 42% 40 36% 36% Percent 30 27% 20 18% 15%** 10% 9% 10% 10 8% 6% 7% 2% 2% 2% 0 1975 1980 1985 1990 1995 Year = North American Companies = European Companies = Japanese Companies = ROW Companies ** Korean companies' share is 10 percentage points. Source: ICE, "Status 1996" 13743R Figure 2-1. Marketshares of Worldwide IC Sales ($) INTEGRATED CIRCUIT ENGINEERING CORPORATION 2-1 Worldwide IC Vendors For the past 21 years European companies have continued to represent between seven and ten percent of worldwide IC sales. Meanwhile, the ROW companies have increase their share from about one percent to 15 percent. 1992 was the first year that the ROW IC companies (primarily Korean and Taiwanese) sold more ICs (in dollars) than the indigenous European companies! In 1995, sales by ROW IC companies were more than double those of European IC companies. A ranking for the world’s top ten merchant semiconductor sales leaders in 1995 is given in Figure 2-2. These companies grew by an average of 37 percent during the year, and together, they held roughly 58 percent of the overall semiconductor market. Rank 1995 Total 1995 IC 1995 1995/1994 Company Semi Sales Sales ($M) Discrete Percent 1995 1994 1992 ($M) Sales ($M) Change 1 1 3 Intel 13,590 13,590 — 38 2 2 1 NEC 12,275 11,045 1,230 39 3 3 2 Toshiba 10,000 8,100 1,900 24 4 5 5 Hitachi 9,825 8,630 1,195 41 5 4 4 Motorola 8,932 7,196 1,736 24 6 7 11 Samsung 8,416 8,182 234 68 7 6 6 TI 7,750 7,700 50 40 8 N/A N/A IBM Microelectronics 5,705 5,705 — 25 9 8 8 Mitsubishi 5,510 4,690 820 39 10 9 7 Fujitsu 4,440 4,010 430 33 — — — Total 86,443 78,848 7,595 37 Source: ICE, "Status 1996" 18072J Figure 2-2. Worldwide Top Ten Merchant Semiconductor Sales Leaders The 1995 top fifteen world integrated circuit sales leaders are listed in Figure 2-3. The most notable aspect concerning this list is the fact that Samsung, LG Semicon, Hyundai, and Micron, each a major non-Japanese DRAM supplier, are all quickly moving up in the ranks. NORTH AMERICAN MERCHANT IC VENDORS Provided in Figure 2-4 is a listing of those North American merchant IC vendors with sales of at least $25 million in 1995. The figure includes sales for both IC manufacturers and fabless IC sup- pliers. For the manufacturers, IC “sales” include all revenue from ICs produced by their own fab- rication facilities and by external foundries. Also, sales by the major ASIC firms (e.g., Xilinx, Altera, and LSI Logic) include revenue from sales of software design tools. 2-2 INTEGRATED CIRCUIT ENGINEERING CORPORATION Worldwide IC Vendors Rank 1995 Total 1995/1994 Company IC Sales Percent 1995 1994 1992 ($M) Change 1 1 2 Intel 13,590 38 2 2 1 NEC 11,045 41 3 4 4 Hitachi 8,630 45 4 7 9 Samsung 8,182 70 5 3 3 Toshiba 8,100 26 6 6 6 TI 7,700 40 7 5 5 Motorola 7,196 23 8 N/A N/A IBM Microelectronics 5,705 25 9 8 8 Mitsubishi 4,690 43 10 9 7 Fujitsu 4,010 35 11 15 21 LG Semicon 3,300 83 12 17 27 Hyundai 3,000 71 13 10 14 SGS-Thomson 2,947 34 14 13 13 Philips 2,850 35 15 19 26 Micron 2,705 72 — — — Total 93,650 41 Source: ICE, "Status 1996" 20458 Figure 2-3. Worldwide Top Fifteen Merchant IC Sales Leaders On average, sales for IC vendors headquartered in North America grew 34 percent in 1995 versus 27 percent in 1994. Of the 85 companies listed in the figure, only a dozen or so are estimated to have experienced anything less than double digit growth in 1995. Those companies with the most dramatic sales gains for the year are shown in Figure 2-5. Note that the list includes only those companies with sales of more than $100 million thereby making the growth rates more comparable. A close look at the figure reveals two interesting points. First, half of the companies listed in the figure are involved in graphics and/or multimedia-related ICs; and second, two-thirds of them are fabless. Figure 2-6 lists selected North American IC companies and the end-user markets they rely on. Those companies that are heavily dependent on the computer industry have benefited from a booming market for PCs. At the same time, however, they are more susceptible to downturns. Those companies that sell to a balance of computer, communications, and consumer product man- ufacturers are generally more resilient to cyclical fluctuations. Excluding the effects of a change in the classification of Cirrus Logic from fabless supplier in 1994 to manufacturer in 1995, sales for the region’s fabless IC companies grew by more than 50 percent in 1995. With the reclassification taken into account, the growth in sales for the year drops to 20 percent. INTEGRATED CIRCUIT ENGINEERING CORPORATION 2-3 Worldwide IC Vendors 1994 1995/1994 1995 (EST) Company Fabless1 MOS Bipolar IC TotalPercent Change MOS Bipolar IC Total ACC Microelectronics x 25 — 25 20 30 — 30 Actel x 76 — 76 42 108 — 108 Allegro MicroSystems2 40 99 139 23 47 124 171 Alliance Semiconductor x 95 — 95 174 260 — 260 Altera x 199 — 199 101 400 — 400 AMCC2 11 36 47 11 15 37 52 AMD 1,993 142 2,135 11 2,260 120 2,380 AMI 171 — 171 23 210 — 210 Anadigics3 35 — 35 51 53 — 53 Analog Devices2 365 350 715 29 483 442 925 AT&T Microelectronics2 1,035 215 1,250 18 1,255 220 1,475 Atmel2 372 — 372 64 609 — 609 Brooktree x 113 113 33 150 — 150 Burr-Brown2 30 135 165 39 46 184 230 C-Cube Microsystems x 42 — 42 174 115 — 115 Catalyst x 46 — 46 –4 44 — 44 Cherry Semiconductor2 4 71 75 37 8 95 103 Chips and Technologies x 74 — 74 88 139 — 139 Cirrus Logic 777 — 777 59 1,235 — 1,235 Cypress2 406 — 406 48 600 — 600 Cyrix x 246 — 246 –4 235 — 235 Dallas Semiconductor 181 — 181 24 225 — 225 Elantec2 5 18 23 26 8 21 29 Electronic Designs x 25 — 25 12 28 — 28 Exar2 x 91 65 156 3 120 40 160 Exel x 24 — 24 54 37 — 37 Gennum — 34 34 18 — 40 40 Harris2 405 90 495 5 425 95 520 Honeywell 42 3 45 — 42 3 45 IBM Microelectronics2 3,725 850 4,575 25 4,815 890 5,705 IC Works2 30 — 30 43 43 — 43 ICS x 100 — 100 12 112 — 112 IDT2 389 — 389 65 642 — 642 IIT x 41 — 41 15 47 — 47 IMP 57 — 57 23 70 — 70 Intel2 9,850 — 9,850 38 13,590 — 13,590 International Rectifier 22 — 22 32 29 — 29 ISD x 39 — 39 54 60 — 60 ISSI x 64 — 64 139 153 — 153 Lattice x 134 — 134 38 185 — 185 Level One x 47 — 47 60 75 — 75 Linear Technology2 51 177 228 43 97 228 325 Linfinity Microelectronics2 9 31 40 5 10 32 42 LSI Logic 902 — 902 40 1,262 — 1,262 1 No more than approximately 25 percent of wafer requirements are met by wholly- or partially-owned fabs. 2 BiCMOS ICs included under MOS. 3 GaAs ICs included under MOS. Source: ICE, "Status 1996" 9998Y Figure 2-4. North American Companies’ IC Sales ($M) 2-4 INTEGRATED CIRCUIT ENGINEERING CORPORATION Worldwide IC Vendors 1994 1995/1994 1995 (EST) Company Fabless1 MOS Bipolar IC TotalPercent Change MOS Bipolar IC Total Maxim2 193 — 193 80 347 — 347 Micrel2 31 5 36 50 48 6 54 Micro Linear2 x 10 32 42 38 18 40 58 Microchip Technology 191 — 191 40 267 — 267 Micron 1,575 — 1,575 72 2,705 — 2,705 Mitel Semiconductor 56 — 56 21 68 — 68 Motorola2 4,640 1,228 5,868 23 5,714 1,482 7,196 National2 1026 988 2,014 16 1,200 1,130 2,330 Oak Technology x 50 — 50 280 190 — 190 Opti x 134 — 134 16 155 — 155 Orbit Semiconductor 43 — 43 35 58 — 58 Paradigm 33 — 33 58 52 — 52 Pericom Semiconductor x 23 — 23 74 40 — 40 QLogic x 56 — 56 –29 40 — 40 Quality Semiconductor x 38 — 38 24 47 — 47 Raytheon Semiconductor2,3 26 74 100 2 37 65 102 Rockwell Semiconductor3 515 — 515 26 650 — 650 S-MOS Systems x 145 — 145 6 153 — 153 S3 x 140 — 140 119 306 — 306 Sierra Semiconductor x 109 — 109 88 205 — 205 Silicon Storage Technology x 4 — 4 825 37 — 37 Silicon Systems2 120 180 300 25 205 170 375 Standard Microsystems 106 — 106 32 140 — 140 Supertex 20 — 20 85 37 — 37 Symbios Logic 354 — 354 41 500 — 500 Synergy Semiconductor — 26 26 15 — 30 30 TelCom Semiconductor2 22 3 25 60 36 4 40 Texas Instruments2,3 4,125 1,375 5,500 40 5,920 1,780 7,700 Trident Microsystems x 85 — 85 62 138 — 138 TriQuint3 30 — 30 57 47 — 47 Tseng Labs x 80 — 80 –50 40 — 40 Unitrode2 7 77 84 37 10 105 115 UTMC x 30 — 30 — 30 — 30 Vitesse3 37 — 37 22 45 — 45 VLSI Technology 587 — 587 24 725 — 725 VTC — 108 108 48 — 160 160 Western Digital x 150 — 150 — 150 — 150 WSI x 28 — 28 29 36 — 36 Xicor 104 — 104 1 105 — 105 Xilinx x 321 — 321 70 545 — 545 Zilog 223 — 223 14 255 — 255 Others 515 38 553 40 737 42 779 Total 38,370 6,450 44,820 34 52,415 7,585 60,000 1 No more than approximately 25 percent of wafer requirements are met by wholly- or partially-owned fabs.