U.S. Companies Forecast to Hold Lead in IC Sales Through 2009

U.S.-headquartered companies are expected to account for 46 percent of worldwide IC sales in 2005 compared to only 19 percent by Japan-headquartered companies. Figure 1 shows a breakdown of worldwide IC sales by company origin from 1982 through 2009 for U.S., Japanese, and European IC companies. It should be noted that IC sales in this analysis include foundry sales. As shown, U.S.-headquartered companies, led by Intel, are forecast to continue to hold the highest share of worldwide IC sales through 2009.
 
In 1982, Asia-Pacific (i.e., Other) companies' share of IC sales was only 2 percent. As shown in Figure 2, the "Other" companies' share more than doubled from 9 percent in 1994 to just less than one-quarter (24 percent) in 2004. With IC production by Asia-Pacific foundries expected to dramatically increase over the next few years, IC Insights believes that the "Other" IC marketshare will reach almost a one-third share (32 percent) in 2009.
In 2004, Taiwan-headquartered companies held the third largest share of IC sales (11 percent) behind the U.S. and Japanese companies. IC Insights forecasts that the Taiwan-headquartered companies will gain an additional two points of share by 2009.
Although China-headquartered IC producers are expected to grow very rapidly over the next five years, IC Insights forecasts that their share of IC sales will still be less than 5 percent in 2009. While IC consumption in China is forecast to be $84.4 billion in 2009 (up from $31.0 billion in 2004), China's indigenous IC producers¡¯ IC sales in 2009 are forecast to be only $10 billion (up from $2.3 billion in 2004).