Renesas-NEC merger creates giant

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7 July 2010 News

According to analysis by Semicast Research, the merger of Renesas Technology and NEC Electronics to form Renesas Electronics has created the world’s leading supplier of semiconductors to the industrial sector.

Semicast’s industrial semiconductor vendor market share analysis has consistently ranked both Renesas and NEC among the leading vendors for the last few years, but the merging of the two suppliers takes the combined Renesas Electronics to the top of the 2009 rankings. Infineon Technologies, the leading vendor for the last two years, drops to second place, ahead of STMicroelectronics, with Texas Instruments and Analog Devices completing the top five. Colin Barnden, principal analyst at Semicast Research and study author, commented, “The industrial semiconductor market continues to have no one dominant vendor, with the top four suppliers each holding a market share of between 5 and 7% and the top 10 together accounting for less than 40% of the market in 2009.”

The industrial semiconductor market is estimated to have fallen by 6% in 2009 to $20,6 billion, compared with a 12% decline for the overall semiconductor market. The industrial semiconductor market is forecast to grow 9% in 2010, with revenues projected to rise steadily over the medium term to around $35 billion in 2015.

In the current economic climate, industrial is one sector which semiconductor vendors can look to as a safe haven for more dependable revenues. Although industrial does not benefit from the hype and glamour of other sectors, neither does it exhibit the boom-and-bust cycle so typical of the semiconductor industry as a whole. Furthermore, its broad applications base (encompassing areas as diverse as medical imaging, lighting control and agricultural machinery) and correspondingly fragmented customer base, help to ensure a spread of risk and uncertainty during these unprecedented times.

For more information visit www.semicast.net

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Renesas-NEC merger creates giant

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