Dataquest Reports Worldwide Semiconductor Market Lost $10 Billion in 1996; Americas Takes the Lead over Japan as Top Regional Supplier.

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 7, 1997--Because of the steep drop in the DRAM market, the worldwide semiconductor market declined 7 percent in 1996 as revenue reached $141 billion, according to Dataquest.

While the semiconductor market has blossomed with the success of the DRAM market, Dataquest analysts said the semiconductor market suffered in 1996 as the average selling price for DRAM declined by three-fourths in 1996.

"DRAM revenue growth had been the major factor in the semiconductor revenue upswing from 1993 through 1995; DRAM continued as the revenue driver in 1996 as DRAM revenue declined by nearly 40 percent in 1996," said Gene Norrett, vice president and director in Dataquest's Semiconductors Worldwide program. "Excluding DRAM, the 1996 semiconductor market actually grew by 6 percent, led by a 14 percent microcomponent revenue growth."

DRAM-focused vendors lost revenue rapidly, which contributed to the substantial drop in market share of the Asia/Pacific semiconductor suppliers, from 11.8 percent in 1995 to 9.4 percent in 1996. Americas suppliers regained the lead in 1996 over their counterparts in Japan by nearly 8 percent (see Table 1). -0-

Table 1
Preliminary Regional Suppliers Market Share Estimates
(Millions of U.S. Dollars)

Regional Vendors 1995 Market  1996 Market  1995 Revenue  1996 Revenue
                  Share (%)   Share (%)

Americas              39.6      44.3        59,967        62,300
Japan                 40.1      36.7        60,599        51,601
Europe, Africa,        8.5       9.4        12,902        13,540
and Middle East
Asia/Pacific          11.8       9.4        17,805        13,253
Total                100.0     100.0       151,273       140,694

Note:  Columns may not add to totals shown because of rounding.
Source:  Dataquest (January 1997)

    Intel maintained its hold on the No. 1 position for the fifth
consecutive year with 29 percent revenue growth in 1996, gaining
nearly a $6 billion edge over second-place NEC.  Intel and
SGS-Thomson were the only top 10 companies to show positive growth in
1996 (see Table 2).

Table 2
Preliminary Worldwide Semiconductor Market Share Estimates
(Millions of U.S. Dollars)

1996 1995  Company            1995      1996      1995-1996   1996 Market
Rank Rank                     Revenue   Revenue   Growth (%)    Share (%)

 1    1    Intel              13,172    16,938       29            12.0
 2    2    NEC                11,314    10,582       -6             7.5
 3    5    Motorola            8,733     8,437       -3             6.0
 4    4    Hitachi             9,135     8,056      -12             5.7
 5    3    Toshiba            10,076     7,981      -21             5.7
 6    7    Texas Instruments   7,831     7,090       -9             5.0
 7    6    Samsung             8,332     6,196      -26             4.4
 8    8    Fujitsu             5,535     4,507      -19             3.2
 9    9    Mitsubishi          5,274     4,200      -20             3.0
 9    14   SGS-Thompson        3,398     4,200       24             3.0

           Total Revenue     151,273   140,694       -7           100.0

Source:  Dataquest (January 1997)

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For more information about subscribing to Dataquest's Worldwide Semiconductor program, please call 800/419-DATA. More information about Dataquest's programs, descriptions of recent research reports, and full text press releases can be found on the Internet at http://www.dataquest.com .

Dataquest is a 25-year-old global market research and consulting company serving the high-technology and financial communities. The company provides worldwide market coverage on the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the information technology industry. Dataquest is a Gartner Group Company.

CONTACT: Dataquest, San Jose

Tom McCall, 408/468-8312

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