The Semiconductor Industry Association announced that worldwide semiconductor sales for 2013 reached US$305.6bn, the industry’s highest-ever annual total and an increase of 4.8% from the 2012 total of US$291.6bn. Global sales for the month of December 2013 reached US$26.6bn, and December sales in the Americas increased 17.3% YoY. Q4'13 global sales of US$79.9bn were 7.7% higher than the total of US$74.2bn from Q4’12. This was due to improved consumer sentiments in the developed markets and an upturn led by Christmas holiday sales which is seasonally a peak for electronics demand globally.
The industry saw strong demand in several product segments during 2013. Logic was the largest semiconductor category by sales, reaching US$85.9bn in 2013, a 5.2% increase compared to 2012. Memory at US$67.0bn and Metal-oxide-semiconductor micro-ICs at US$58.7bn rounded out the top three segments in terms of sales revenue. Memory was the fastest growing segment, increasing 17.6% in 2013. Within memory, DRAM performed well, increasing by 33.3% YoY, while NAND flash experienced strong growth of 8.1%. Other positively performing product segments included Optoelectronic products, which reached US$27.6bn in sales, and Analog, which reached US$40.1bn in sales.1
Samsung Electronics and Apple remained the top semiconductor buyers in 2013, increasing their combined semiconductor demand by 17%, according to Gartner. Samsung and Apple together consumed US$53.7bn of semiconductors in 2013, an increase of US$7.7bn from 2012. The top 10 companies bought US$114bn of semiconductors, accounting for 36% of semiconductor vendors' worldwide revenue in 2013. This was up from US$105.1bn and 35% in 2012.2
Applied Materials generated orders of US$2.29bn, up 9% from the prior quarter led by demand for Silicon Systems group products. Net sales were US$2.19bn, up 10% sequentially. Silicon Systems group (SSG) orders were US$1.57bn, up 13%, with growth in foundry and flash partially offset by decreases in logic and DRAM. Net sales increased 19% to US$1.48bn. Operating income increased to US$314mn or 21.2% of net sales. New order composition was: foundry 60%; flash 27%; logic/other 8%; and DRAM 5%. Display orders of US$79mn were down 31%, while net sales declined slightly to US$159mn. Backlog grew 3% to US$2.44bn including negative adjustments of US$32mn, primarily related to currency adjustments. Backlog composition by segment was: SSG 56%; AGS 27%; Display 12%; and EES 5%.
Qualcomm’s revenue of US$6.62bn, was up 10% YoY and 2% sequentially. Operating income was down 28% YoY to US$1.49bn. Net income of US$1.88bn was down 2% YoY but up 25% sequentially. It was driven by growth in sales of MSMTM chips---213 million units, up 17% YoY and 12% sequentially. Net income was also positively impacted by a US$665mn gain from discontinued operations associated with the sale of all of the operations of Omnitracs division.