Chinese Contract Semiconductor Maker – No.3 in the World

by Anton Shilov
03/29/2006 | 11:58 PM

Semiconductor Manufacturing International Corp. (SMIC), a contract maker of semiconductors based in mainland <%BANNER[article]%>China, has unseated Chartered Semiconductor Manufacturing of Singapore as the world’s third-biggest silicon-foundry supplier last year, according to market researcher Gartner cited by China Economic News Service (CENS) agency.

Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corp. of Taiwan were rated as the No.1 and No.2 players, respectively, in the sector. TSMC commanded 44.8% of the market in 2005 with sales of $8.22 billion, increasing 7.2% from 2004, Gartner’s study shows. UMC reported sales of US$2.82 billion, down 19.3% annually, taking 15.4% of the world’s market share.

SMIC snatched up 6.4% of the world market last year with sales totaling $1.17 billion, compared with Chartered’s 6.2% and sales of $1.13 billion. SMIC’s 2005 sales result represented a 20.1% gain from a year earlier, while Chartered’s was up 2.6%, notes CENS. IBM Corp.’s foundry business was ranked as the No.5 competitor with a market share of 4.5%. The foundry unit had sales of US$823 million last year, inching up 2.1% from 2004.

Other companies participating in the Top 10 contract makers of semiconductors in 2005 are MagnaChip Semiconductor Ltd. (2.1% market share, $396 million in sales), Vanguard Semiconductor International Corp. (1.9% market share, $354 million in revenue), Dongbu (1.9% market share, $347 in sales), Hua Hong NEC (1.7% of the market, $305 million earnings) and Jazz Semiconductor (1.1% market share, $210 million in revenue).