1Q05 Top 10 Semiconductor Supplier Ranking

Scottsdale, Arizona --- April 28, 2005 --- IC Insights today released its 1Q05 ranking of the worldwide top 10 semiconductor suppliers (Figure 1). As shown, Freescale, which ranked eleventh in the full-year 2004 listing, replaced Philips as the tenth largest semiconductor supplier in the world in 1Q05. Philips fell to number 12, being passed by Sony as well. Moreover, given the three companies¡¯ (Freescale, Sony, and Philips) outlooks for 2Q05, Freescale is likely to remain the tenth largest supplier when the 1H05 rankings are compiled.
It should be noted that Freescale¡¯s entry into the top 10 ranking in 1Q05 was not solely the result of Philips¡¯ poor performance. In contrast to Philips¡¯ 9 percent 1Q05/4Q04 semiconductor sales decline, Freescale posted a 1Q05/4Q04 semiconductor sales increase of 1 percent. Given the relatively weak overall semiconductor industry environment of 1Q05, Freescale¡¯s performance should be recognized as excellent.
In 1Q05, Toshiba jumped from seventh in the full-year 2004 semiconductor supplier ranking to fourth. Toshiba¡¯s 1Q05/4Q04 sales surged 14 percent to help it jump three positions. Moreover, Toshiba expects its fiscal year 2005 (ending March 2006) semiconductor sales to increase 11 percent (in yen) over fiscal year 2004 (which ended March 2005).
Overall, the major European semiconductor suppliers (i.e., Infineon, ST, and Philips) endured a very difficult 1Q05. Together, the top three European producers registered a 1Q05/4Q04 semiconductor sales decline of 10.1 percent. Even with a slightly positive boost from exchange rate conversions from euros to U.S. dollars, Infineon registered a 10.6 percent 1Q05/4Q04 revenue decline, ST a 10.5 percent drop, and Philips an 8.7 percent fall.