Qualcomm, a company that doesn’t own a single semiconductor production factory, has ascended into the Top-10 ranks of the global chip industry in the second quarter, according to iSuppli, marking the first time a fabless company has achieved such a distinction.
Qualcomm, a US-based fabless semiconductor supplier, rose to the ninth position among global semiconductor suppliers in the second quarter, up from 13th in the first quarter. The seller of communications chips in the second quarter achieved revenue $1.4 billion, up 8.6 percent from $1.3 billion in the first quarter.
On its way from 14th to ninth place, Qualcomm surpassed companies with considerable manufacturing assets, including Infineon Technologies, Qimonda, Freescale Semiconductor and NEC Electronics. Qualcomm now stands shoulder-to-shoulder with chip manufacturing powerhouses including NXP Semiconductors and Hynix Semiconductor.
Qualcomm’s coups
Recent headlines covering Qualcomm’s legal troubles notwithstanding, the company achieved stellar results in the second quarter. The company’s 8.6 percent increase represented the highest growth rate of any Top-10 semiconductor supplier in the second quarter – and marked a significant accomplishment amid a decline in overall chip revenue.
Global semiconductor revenue declined by 3.6 percent to $63.1 billion in the second quarter, down from $65.4 billion in the first quarter.
The company in the first quarter replaced Texas Instruments as the world’s top supplier of semiconductors for wireless applications. This marks the first time that Texas Instruments has not occupied the leadership position in this area at least since iSuppli began tracking such market share in 2004.
With its valuable intellectual property, Qualcomm is capitalizing effectively on the transition to 3G technology in the mobile handset market. iSuppli doesn’t expect the International Trade Commission’s (ITC’s) decision to ban U.S. imports of some mobile phones that include certain Qualcomm chips to significantly damage the company’s third-quarter results.
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