FSA Announces 27 Percent Worldwide Fabless Revenue Growth in 2004
SAN JOSE, Calif.—(BUSINESS WIRE)—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.
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.
About FSA:
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. www.fsa.org.
Contact:
FSA
Vivian Pangburn, 972-866-7579 ext. 140
vpangburn@fsa.org
or
Media Contact:
Shelton Public Relations
Helen Garrett, 972-239-5119 ext. 201
hgarrett@sheltongroup.com
