Fabless suppliers increase global share of IC sales

29 June 2022 News

As reported by IC Insights, the CAGR for 10 years from 2011 to 2021 saw fabless company IC sales double that of the integrated device manufacturers (IDM) IC supply. Typically, the sales growth rate registered by the fabless IC suppliers is better than that displayed by the IDMs and in the latest analysis, fabless IC suppliers now hold a record 34,8% share of the global IC sales.

The disparity between fabless IC supplier growth and IDM IC supplier growth has been especially pronounced over the past three years. In 2019, driven by a collapse in the memory market, IDM IC sales plunged by 20%. In contrast, fabless IC supplier sales declined only 1%. In 2020, fabless IC company sales jumped by 22% while IDM sales increased by only 9%. Last year, fabless IC company sales surged 36% while IDM sales were up by 21%.

One interesting point to note is that if Intel was excluded from the IDM listing in 2020 and 2021, total IDM supplier IC sales would have been up by 29% last year, eight points better than when the company is included.

The 36% surge in fabless company IC revenue in 2021 allowed the fabless companies’ share of worldwide IC sales to reach the record high at 34.8%. Over the long-term, it is believed that fabless/system IC suppliers, and the IC foundries that serve them, will continue to be a strong force in the total IC industry landscape with their percentage share of the total IC market expected to reach the high-30s over the next five years.

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