25 Most Valuable Semiconductor Companies In The World
In this article, we will be looking at the 25 most valuable semiconductor companies in the world. If you want to skip our detailed analysis of the global semiconductor industry, you can go directly to the 5 Most Valuable Semiconductor Companies in the World.
Semiconductor Industry: Key Insights
According to a report by Deloitte, 2023 was a tumultuous year for the semiconductor industry as it experienced sales declining by 9.4% to $520 billion. This was the seventh downturn the industry went through since 1990. The situation was expected to be much worse, however, many semiconductor companies had stronger second and third quarters. 2024 is anticipated to be a better year with global sales predicted to reach $588 billion and surpass the record revenues of 2022, $574 billion.
The memory chip market had the worst drop in sales in 2023, 31%. It was the most significantly impacted segment of the semiconductor industry. The rest of the industry only went through a steady 3% decline in sales in 2023. In end markets, PC and smartphone sales are expected to grow by 4% in 2024 after going through a downward slump in 2023. Communication and computer chip sales, including data center chips, remain crucial, constituting 56% of overall semiconductor sales in 2022. High inventory levels and declining fab utilization pose challenges for the industry. Inventory levels remained high at over $60 billion in fall 2023. Fab utilization also remained high during the recent shortage.
Major Players In The Semiconductor Industry
NVIDIA Corp (NASDAQ:NVDA), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSMC), and Broadcom Inc. (NASDAQ:AVGO) are some of the most prominent names in the semiconductor industry.
NVIDIA Corporation (NASDAQ: NVDA) is an American semiconductor company. NVIDIA Corporation (NASDAQ: NVDA) is based in Santa Clara, California. It is a leading provider of graphics processing units and application programming interfaces. On February 6, the company announced a partnership with Cisco Systems Inc (NASDAQ:CSCO). The partnership aims to provide AI infrastructure solutions for data centers by equipping enterprises with the computing power necessary for success in the AI era. Cisco’s networking expertise and NVIDIA’s GPU technology combined would enable them to deliver secure and scalable Ethernet-based infrastructure.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSMC) is a Taiwan-based semiconductor company founded in 1987. The company is also a notable supplier of artificial intelligence hardware and software. On February 6, the company announced further investment in Japan Advanced Semiconductor Manufacturing, Inc. (JASM). Sony Semiconductor Solutions Corporation (SSS), DENSO Corporation, and Toyota Motor Corporation are also investing in JASM. JASM is Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSMC) majority-owned manufacturing subsidiary in Kumamoto Prefecture, Japan, which aims to build a second fab, scheduled to start operations by the end of 2027. The investment is expected to create over 3,400 high-tech professional jobs.
Broadcom Inc. (NASDAQ:AVGO) is a notable semiconductor company headquartered in San Jose, California. The company designs, develops, and supplies semiconductor and infrastructure software solutions. On December 7, 2023, Broadcom Inc. (NASDAQ:AVGO) reported earnings for the fiscal fourth quarter of 2023. The company reported an EPS of $11.06, beating estimates by $0.1. The company’s revenue for the quarter grew by 4.09% and amounted to $9.3 billion, ahead of market consensus by $18.97 million. As of February 15, the company has surged nearly 50.56% over the past six months. Here are some comments from the company’s earnings call:
“In our fiscal Q4 2023, consolidated net revenue was $9.3 billion, up 4% year-on-year and very much as we had guided at the last conference call. Semiconductor solutions revenue increased 3% year-on-year to $7.3 billion, and infrastructure software revenue grew 7% year-on-year to $2 billion. Overall, while infrastructure software remains very stable, semiconductor is continuing the cyclical slowdown at enterprises and telcos that we have been seeing over the past six months. However, hyperscalers remain strong. Generative AI revenue, driven by Ethernet solutions and custom AI accelerators, represented close to $1.5 billion in Q4 or 20% of semiconductor revenue, while the rest of the semiconductor revenue continued to be rather stable at around $6 billion.”
The semiconductor industry is a booming industry with prominent companies competing to meet to growing demand. We have made a list of the most valuable semiconductor companies in the world.
25 Most Valuable Semiconductor Companies In The World
Our Methodology
To make our list of the most valuable semiconductor companies in the world, we went over several sources including industry reports, our own rankings, and…
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