Silicon Valley-based semiconductor companies achieved stronger growth in 2004 than they did in 2003, indicating that the region remains a thriving environment for chip suppliers, iSuppli Corp believes.
The 55 Silicon Valley-based semiconductor suppliers tracked by iSuppli's Competitive Landscaping Tool (CLT) together posted revenue of US$57.7billion in 2004, up 18.9percent from US$48.5billion in 2003, according to CLT data. Revenue for these companies increased by a more modest 13percent in 2003.
The 10 largest semiconductor suppliers based in Silicon Valley achieved revenue of US$49.4billion, up 17.7percent from US$41.97billion in 2003, slightly below the overall local average. The top 10 companies accounted for 85.6percent of total Silicon Valley semiconductor revenue in 2004.
The Silicon Valley semiconductor scene ostensibly is dominated by the world's largest chip maker: Intel Corp. Indeed, the microprocessor giant accounted for more than half of all chip revenue for Silicon Valley-based semiconductor suppliers in 2004, with 54.3percent of sales. Intel's semiconductor revenue increased by 15.9percent for the year, rising from US$27billion in 2003, to US$31.3billion in 2004.
However, most of the growth for the Silicon Valley-based semiconductor suppliers is actually being driven by the medium- and smaller-sized firms in the region. Silicon Valley appears to be a particularly favourable environment for these more modestly sized suppliers.
Medium-sized companies Marvell, Silicon Storage Technology, Omnivision and Zoran, whose revenues vary from the US$1.2 billion range to about US$300million, all achieved revenue growth exceeding 50percent in 2004.
Of the 55 Silicon Valley-based semiconductor suppliers tracked by the CLT, a total of 16 or 29percent-achieved growth of 50percent or more for the year. Eight of these companies had revenues of US$100million or less in 2004.