Fabless Semiconductor Association Announces Fabless Fundings Increase 23 Percent in Q4 2003; Largest Number of Investments since Q1 2001
SAN JOSE, Calif.—(BUSINESS WIRE)—Feb. 11, 2004—
The Fabless Semiconductor Association (FSA), the global
voice for fabless and hybrid semiconductor companies and their foundry
and supply-chain partners, announced today that the amount of funding
raised by fabless companies sequentially increased 23 percent
quarter-over-quarter (QoQ) in Q4 2003.
Thirty-nine fabless companies raised $483.6 million in Q4 2003,
compared to 34 raising $394.9 million in Q3 2003. The $483.6 million
raised in Q4 was the largest amount of funding in one quarter since Q1
2002, and the 39 fundings represented the most deals closed since Q1
2001. The FSA announced this information with the release of its Q4
2003 "Fabless Fundings" report.
The report also notes that fabless industry fundings continued to
outpace other industries. According to VentureWire, the number of U.S.
venture capital investments declined 16 percent year-over-year (YoY)
in Q4 2003. However, the FSA's research indicates that fabless
semiconductor investments increased 44 percent YoY. Furthermore, the
$483.6 million closed in Q4 2003 represented a 41 percent increase in
terms of dollars raised YoY, compared to the $344.0 million raised in
Q4 2002.
The FSA's research identified 135 fabless companies raising $1.6
billion throughout all of 2003, compared to 109 fabless companies
raising $1.6 billion in 2002, a 24 percent increase in the number of
total deals closed YoY.
The FSA also found that the number of companies closing early
rounds of funding continued to decline in 2003. Thirty-five percent of
all funding deals closed in 2000 went to companies seeking their first
round of funding, compared to 33 percent in 2001, 21 percent in 2002
and only 17 percent in 2003. In addition, the average amount of money
raised in the first round also continued to decline. In 2000, the
average amount closed in the first round was $15.8 million, compared
to $8.8 million in 2001, $8.3 million in 2002 and $7.1 million in
2003.
"Even with the focus on increased fabless fundings in 2003, it is
clear that emerging companies must still demonstrate a combination of
proven technology, a strong business model and an experienced
management team," said Lisa Tafoya, director of research and projects
for the FSA. "Proving profitability is the ultimate goal, and
companies must develop concisely written business plans that reflect
innovative methodologies and clear strategies for achieving long-term
success. They must learn to stretch their seed dollars, meet
aggressive milestones and prove they have the business acumen to
achieve faster time-to-market."
About the Fabless Semiconductor Association:
The FSA is the global voice of fabless and hybrid semiconductor
companies and their foundry and supply-chain partners. Incorporated in
1994, the Association (www.fsa.org) is focused on the perpetuation of
the fabless business model throughout the worldwide semiconductor
industry. The organization encourages the relationship between
semiconductor companies and suppliers; facilitates business
partnerships; creates awareness of the fabless/outsourced business
model; disseminates industry data; and fosters standards and policies.
FSA members include fabless companies, IDMs, foundry providers,
packaging/assembly houses, intellectual property providers, electronic
design automation companies, OEMs, photomask companies, design
software companies, investment bankers, venture capitalists and other
companies. FSA members represent more than 21 countries spanning North
America, Asia-Pacific, Europe and the Middle East.
Contact:
Fabless Semiconductor Association
Vivian Pangburn, 972-866-7579, ext. 140
vpangburn@fsa.org
or
Media Contact:
Shelton PR
Helen Garrett/Erin Anthony, 972-239-5119, ext. 201/135
hgarrett@sheltongroup.com
eanthony@sheltongroup.com
