1998: A very bad year for chip makers

By Staff -- Purchasing, 2/11/1999

Six of the top 10 semiconductor companies suffered double-digit revenue declines in 1998, with dram manufacturers taking the biggest hits. One exception: Siemens, which grew more than 12% last year.

"The dram market is sailing in uncharted waters, having suffered its third bad year in a row," says Joe D'Elia, associate director and program manager for Dataquest's Semiconductors Europe program. "Overcapacity reared its head in previously profitable product segments, and the Asian financial crisis continues to be felt," he says.

Intel was one of the few chip makers to post positive revenue in 1998, with revenue growing 4.3% to $22.6 billion. The differential between Intel and No. 2 NEC increased yet again, with Intel's semiconductor revenue being 2.7 times that of its nearest rival. Philips, STMicroelectronics, and Siemens all increased their ranking. Siemens had the greatest sales growth with a 12% increase. Hitachi had the greatest drop in revenue from 1997 with a 26.2 decline.

The top ten semicondcutor companies

Revenue '98 growth

Company $billion (%)

1. Intel 22.6 4.3%

2. NEC 8.2 -19.1%

3. Motorola 6.9 -14.2%

4. Toshiba 6.05 -16.5%

5. Texas Instruments 6.0 -18.4%

6. Samsung 4.7 -18.9%

7. Hitachi 4.6 -26.2%

8. Philips 4.5 1.4%

9. STMicroelecgronics 4.3 7.0%

10. Siemens 3.8 12.4%

SOURCE: DATAQUEST

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