Texas Instruments tops analog chip sales with 6% growth in 2020

Texas Instruments was the largest analog semiconductor company in terms of revenue last year, according to market research firm IC Insights.

The US chip firm recorded US$10.9 billion in sales from its analog chip business. It was a 6% increase year-on-year and was 75% of its total sales of US$14.9 billion of the same year.

Texas Instruments held a 19% market share in the worldwide analog semiconductor market of 2020, more than double that of runner-up Analog Devices.

The increase in sales was thanks to Texas Instruments’ transition to 12-inch wafer fabs, which increased productivity.

Around half of the company’s analog chips were made with 12-inch wafers, the US chip firm said. 

Use of 12-inch wafers lead to 40% deduction in packaging cost compared to those of 8-inch wafers, the firm added. The chips made, packaged and tested with 12-inch wafers were also 20% cheaper than 8-inch wafers, Texas Instruments said.

The company is building another 12-inch fab next to its existing 12-inch RFAB factory at Texas. The new fab will start production next year.

Skyworks was the third largest analog semiconductor company last year and showed the highest growth among the top ten companies.

It recorded US$3.97 billion in sales last year, a 24% increase from 2019. It held a market share of 7% in 2020.

Expanded supply of 5G and Wi-Fi6 solutions to customers to customers such as Apple, Samsung, Oppo, Vivo and Xiaomi that launched their 5G smartphones last year. Skyworks supply frontend modules, power amplifiers and other modules for smartphones.

Infineon, which took fourth place, recorded US$3.82 billion in sales last year, a 2% year-on-year increase. The company saw increased sales from automobiles and power and sensor systems in 2020.

Seventh-place Maxim Integrated saw sales increase 8% year-on-year to US$2 billion.

Other analog semiconductor companies saw sales drop. Analog Devices recorded US$5.132 billion in sales, a 1% drop year-on-year. ST, ON Semiconductor and Microchip saw sales decline year-on-year 1%. 4%, and 7%, respectively. 

The combined sales of the top ten analog semiconductor companies last year was US$35.4 billion, accounting for 62% of the total analog semiconductor sales last year.