Well, 2019 ended with Intel as king of the chip world, Broadcom doing well, everyone shrinking. It’s a good thing that 2020 is looking up, huh?

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Intel and Broadcom were the only flagships of success in an otherwise dismal semiconductor market last year, according to industry analysts at Omdia (formerly IHS Markit).
While the semi-industrial sector as a whole decreased by 11.7%, in terms of revenue, in 2019, Chipzilla increased its cash inflows by 1.3% over a year. According to Omdia, this has allowed Intel to overtake Samsung as the No. 1 king of cash generation, in terms of annual revenue.
The analyst firm estimates that Intel accounts for 16.5% of the global semiconductor market, based on reported revenues of $ 70.78 billion.
By comparison, Samsung’s number two would represent 12.3% and SK Hynix’s number three 5.3%, both numbers dropping – Samsung’s sales fell 29.7% to $ 52.5 billion and SK Hynix revenues of 36.9%. hundred to 22.7 billion dollars – according to analysts. Meanwhile, Broadcom, fifth in the market, stood out to increase annual sales by 5% to $ 18.3 billion; just about everyone except Intel refused.
The ranking, we note, does not include the TSMC mega-fab chips (2019 turnover: $ 35.7 billion) because the listed companies seem to be semiconductor designers rather than contract manufacturers. And AMD (2019 revenue: $ 6.7 billion) is not among the top ten. Nvidia, at $ 9.5 billion, down 7%, is ninth; Qualcomm, $ 14.4 billion, down 13.3%, is sixth.
“It was a year when global semiconductor revenues fell by the largest percentage in at least two decades, when eight of the top 10 chip vendors suffered revenue losses and where sales fell for each market. applications and for each region of the world, ”Omdia explained to us. by email Wednesday.
Why did Intel prosper when everyone, except Broadcom, ate the earth? Diversification, count the experts. Omdia said Chipzilla’s dedication to spreading has helped him avoid the plight of contemporaries driven by memory chip and other technology shipments.

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With teams dedicated to components such as data center components, Internet of Things equipment, AI accelerators, FPGAs, as well as regular client microprocessors, Intel managed to make a profit with four of its top five product groups, the strangest one being the lost NAND memory wing. This, in turn, has made Chipzilla the new leader in the semiconductor market, in terms of total annual revenue, and, with Broadcom, the only winners in an otherwise grim landscape. Omdia declined to comment on Broadcom’s secret of its success.
Chipzilla’s own numbers [PDF] save these results. In the last quarter (Q4 2019), Intel said data center chip volumes increased 12% and selling prices increased 5%, while PC volumes and revenues were stable .
“Formerly considered a supplier of PC-centric microprocessors, Intel is now a diversified supplier of solutions ranging from logic chips to software through analysis,” said Ron Ellwanger, senior semiconductor manufacturing analyst at Omdia. “Omdia believes that Intel’s diversification strategy will continue to serve well – in good times and in bad times.
“Five years ago, Intel began to refocus its business strategy on various critical products and end markets. This strategy paid off in 2019, allowing Intel to avoid relying on a single product or application market and allowing the company to mitigate the effects of the massive market downturn in 2019. “
Speaking of which, we note that, according to Omdia, for the overall market, AI accelerating silicon fell 7% of revenues, DRAM plunged 37.2%, NAND dropped 24, 5% and wireless chipsets fell 13.3%. And it’s before the coronavirus pandemic has struck the planet. ®

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