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FEBRUARY 2020        TAP TIMES      -12-            “The memory market, which accounted
                                                                for 26.7% of semiconductor sales in 2019,
                                                                experienced a 31.5% decline in revenue
                                                                in 2019,” said Andrew Norwood, research
          Global semiconductor revenue                          vice president at Gartner.
                declined 11.9% in 2019

        STAMFORD, Conn.—Worldwide semi-                         DRAM oversupply
        conductor revenue totaled $418.3 bil-                   “Within memory, DRAM revenue declined
        lion in 2019, down 11.9% from 2018,                     37.5% due to an oversupply that started
        according to preliminary results by                     at the end of 2018 and lasted throughout
        Gartner Inc.                                            2019.

                                                                The oversupply was caused by a sudden
        Intel regains #1 position                               fall in demand from the hyperscale mar-
        Intel regained the No. 1 position in the                ket.
        market as the downturn in the memory
        market negatively impacted many of the                  This revealed excessive OEM inventory
        top vendors, including Samsung Electron-                levels that took the fi rst half of the year
        ics, the No. 1 vendor by revenue in 2018                to correct. Excessive inventory at DRAM
        and 2017.                                               vendors in the second half of 2019 pushed
                                                                pricing lower and resulted in an aver-
                                                                           age selling price (ASP) decline of
               Top 10 Semiconductor Vendors by Revenue                     47.4% in 2019.”

                                                                           Intel reclaimed its position as the
                                                                           No. 1 global semiconductor ven-
                                                                           dor by revenue in 2019, recover-
                                                                           ing the position from Samsung
                                                                           Electronics, which held it for the
                                                                           past two years.

                                                                           Server market slowdown
                                                                           Intel’s semiconductor revenue
                                                                           declined 0.7% in 2019, driven by
                                                                           a slowdown in the server market,
                                                                           an ongoing constrained CPU sup-
                                                                           ply and the 4Q19 sale of its cellu-
                                                                           lar modem business to Apple.

                                                                           Samsung dropped to the No. 2
                                                                           position due to the downturn in
                                                                           the memory market (see Table).

                                                                           Like all memory vendors, the
                                                                           company struggled with oversup-
                                                                           ply and falling prices in both the
                                                                           DRAM and NAND fl ash markets.
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