More chip production outsourced
OEMs are buying more integrated circuits from fabless semiconductor suppliers. Fabless IC suppliers accounted for 20% of worldwide IC sales in 2006, an increase from just under 10% of the total IC market in 2000 That percentage will increase over the next several years and by 2011.
By Staff -- Purchasing, 2/15/2007 2:00:00 AM
OEMs are buying more integrated circuits from fabless semiconductor suppliers, according to a new report by researcher IC Insights.
Fabless IC suppliers accounted for 20% of worldwide IC sales in 2006, an increase from just under 10% of the total IC market in 2000. That percentage will increase over the next several years and by 2011, fabless IC companies will command at least 25% of the total IC market. Fabless chip companies outsource chip production to foundries.
Fabless chip companies are growing at a faster rate than the overall IC market. Fabless IC suppliers in total increased their sales by 16% in 2006, seven points greater than the overall IC market growth rate of 9%.
From 1998 through 2006, the worldwide IC market displayed a 9% average annual growth rate.
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