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Intel reclaimed top spot in global semiconductor market, moving Samsung to the second position, the research and advisory firm said in a statement Oversupply in the DRAM market helped push the overall memory market down 32.7 per cent 2019.
The memory market accounted for 26.1 per cent of semiconductor sales in 2019 and was the worst-performing device segment, said Andrew Norwood, research vice president at Gartner.
“The US-China trade war distorted sales throughout the year and was an additional headwind to revenue growth for the overall global semiconductor market. During 2019, this brewing trade war seemed the most imminent danger to the world economy, but with the current spread of the COVID-19, trade wars seem a minor issue in comparison,” he said.
Intel regained the number one position in the market as the downturn in the memory market negatively impacted many of the top vendors, including Samsung Electronics, the number one vendor by revenue in 2018 and 2017.
Within the memory segment, NAND flash suffered its worst sales contraction in its history with 2019 revenue declining 26.4 per cent due to elevated levels of inventory at the end of 2018 and sluggish demand in the first half of 2019.
Weak demand from smartphone and hyperscale cloud service providers drove down prices and forced nearly all vendors to pull back on existing fab plans or, in some cases, cut wafer starts to levels below 2018, the statement said.
The NAND market began to stabilise in July 2019 when a power outage in the fabs jointly owned by KIOXIA and Western Digital acted as a catalyst to reduce vendor inventories and prompted prices to increase from unsustainable lower levels, it said.
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