Intel slips as AMD rises in Q2

Semicon rivals see slight shift in market share last quarter while both companies' push for integrated graphics processors drives share of new platforms, finds new report.

AMD picked up some of the market share that Intel lost in global microprocessor shipments in the second quarter of 2011, according to latest figures from IDC, which also noted a rise in the shipment of integrated graphics processors.

In a report released Tuesday, the research firm said Intel's worldwide market share in the second quarter dropped 1.5 percent to 79.3 percent compared to the previous quarter. AMD gained 1.5 percent market share to reach 20.4 percent over the same period, while VIA Technologies held 0.3 percent of the market.

Intel garnered 84.4 percent share in the mobile PC processor product segment, a drop of 1.9 percent from the previous quarter, while AMD scored a 15.2 percent share, a raise of 1.8 percent, said IDC. VIA accounted for the remaining 0.4 percent.

In the server and workstation processors segment, Intel gained 0.6 percent share to reach 94.5 percent, while AMD's share dropped 0.6 percent to 5.5 percent. In desktop processors, Intel saw a loss of 1.5 percent market share to reach 70.9 percent, while AMD's share increased 1.5 percent to reach 28.9 percent, IDC said.

The research firm said integrated graphics processors accounted for a larger part of the market, making up 60 percent of total PC processor unit volume, as Intel and AMD promoted their respective platforms.

Worldwide PC microprocessor shipments in the second quarter saw a decline of 2.9 percent compared to the previous quarter, while year-on-year growth remained flat at 0.6 percent, said IDC.

Revenue-wise, the total PC semiconductor market earned almost US$9.5 billion. This was a decline of 4 percent compared to the previous quarter but a 5.4 percent increase compared to the same quarter last year, said IDC.

The research firm also revised its year-on-year growth forecast of microprocessor unit shipments for 2011, lowering its number from 10.3 percent to 9.3 percent. It cited "economic headwinds in developed regions" affecting consumer PC demand as a reason for the drop.

Modest market growth
The Semiconductor Industry Association (SIA) also reported a more modest growth forecast for semiconductor sales in 2011. In a report Monday, SIA President Brian Toohey said: "Overall semiconductor sales are on track with growth projections of 5.4 percent growth for 2011."

According to the association, worldwide sales of semiconductors reached US$24.7 billion in June 2011. This represented a 1.5 percent decrease compared to May's sales of US$25 billion, and a 0.5 percent decrease compared to the same period in 2010.

Sales in the second quarter were 2 percent lower than the previous quarter, said SIA, adding that the monthly sales numbers were based on a three-month moving average.

According to SIA, while semiconductor sales saw gains in the corporate PC refresh cycle, smartphone demand, investment in IT infrastructure and from growing markets in China, these gains were offset by slower consumer demand in June.

However, despite the "modest contraction in sales", Toohey said the industry saw a 3.7 percent increase in the first half of 2011 compared to the same period last year.

SIA also noted that year-on-year growth of semiconductor sales is expected in all regions, aside from Japan which is still recovering from the earthquake earlier this year.


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