SAN JOSE, Calif. (March 15, 2005) – FSA, voice of the global fabless business model, announces the results of its “Q4 2004 Global Fabless Fundings & Financials Report," which reveals that 2004 fabless revenue totaled $33 billion, a 27 percent year-over-year (Y-o-Y) growth.
Geographically, U.S. fabless companies represented 75 percent of 4Q 2004 revenue, followed by Taiwan at 20 percent, Europe with three percent and Japan at two percent.
|Top 10 Fabless Companies by CY 2004 Revenue |
|Rank ||Company ||Stock Exchange ||Ticker ||(CY) 2004 Revenue ($000) |
|1 ||QUALCOMM (QCT Division) ||NASDAQ ||QCOM ||$3,224,000 |
|2 ||Broadcom ||NASDAQ ||BRCM ||$2,400,610 |
|3 ||ATI Technologies ||NASDAQ ||ATYT ||$2,140,871 |
|4 ||NVIDIA Corporation ||NASDAQ ||NVDA ||$2,010,033 |
|5 ||SanDisk Corporation ||NASDAQ ||SNDK ||$1,777,055 |
|6 ||Xilinx, Inc. ||NASDAQ ||XLNX ||$1,588,700 |
|7 ||MediaTek Incorporation ||Taiwan ||2454 ||$1,252,470 |
|8 ||Marvell Semiconductor, Inc. ||NASDAQ ||MRVL ||$1,224,580 |
|9 ||Altera ||NASDAQ ||ALTR ||$1,016,364 |
|10 ||Conexant Systems ||NASDAQ ||CNXT ||$914,600 |
|Source: FSA |
While the fabless sector continues to experience Y-o-Y revenue growth, fundings decreased in 4Q 2004. Despite funding slowdowns, the private fabless industry raised $1.8B in 2004, its largest funding amount since 2001 when it raised a record $2.5B.
Funding for fabless companies started strong, but both the number of funding deals and the investment amounts declined quarter-over-quarter for every quarter in 2004, with the exception of 2Q’s number of fundings. The first quarter of 2004 was the most successful in terms of dollar amount raised, generating $560.1 million, compared to $543.7M in 2Q, $434.2M in 3Q and $263.5M in 4Q.
"Venture capitalists have continued to gradually increase investment in fabless companies for the third year in a row,” said Philip T. Gianos, general partner with InterWest Partners and member of the FSA VC advisory board. “The trend is towards earlier stage investments and lower capital commitments because venture investors prefer capital efficient companies and are continuing the move towards outsourcing and offshore development to lower capital requirements. Low values realized from recent acquisitions are a prime reason for this movement."
The report includes an end-market breakdown of funding investments, financials covering more than 150 public companies and analyst forecasts. For more information, visit http://www.fsa.org/store.
FSA is the voice of the global fabless business model. Incorporated in 1994, the FSA positively impacts the growth and return on invested capital of this business model to enhance the environment for innovation. It provides a platform for meaningful global collaboration between fabless companies and their partners; provides timely research and resources; and identifies, debates, and discusses business and technical issues. Members include fabless companies and their supply chain and service partners, representing more than 21 countries across the globe. http://www.fsa.org.