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||Fabless Suppliers Play Increasing Role in IC Market
Unlike the relatively close annual market growth relationship between fabless IC suppliers and foundries, fabless IC company sales growth versus IDM (integrated device manufacturer) IC supplier growth has typically been very different (Figure 1). Except for 2010, fabless company IC sales growth has always outpaced IDM IC sales growth (or the decline was less severe). In 2010, for the first and only time on record, IDM IC sales growth (35%) outpaced fabless IC company sales growth (29%).
Since very few fabless IC suppliers participate in the memory market, they did not receive a boost from the surging DRAM and NAND flash memory markets in 2010, which grew 75% and 44%, respectively. Another reason for the relatively poor showing by the fabless IC segment in 2010 was that some of the large fabless IC suppliers like MediaTek and ST-Ericsson registered growth that was less than half the total 2010 IC industry average.
However, the fabless IC suppliers once again grew faster than the total IC market in 2011 by registering a 5% increase as compared to a 1% decline in sales for the IDM companies. In 2012, the fabless IC suppliers grew by 6%, 14 points better than the 8% decline registered by the IDMs and 10 points better than the 4% decline shown by the total IC market