El Segundo, Calif.-based iSuppli Corp. gave Intel Corp.’s ego a boost this morning as it raised its overall 2005 semiconductor outlook.

The research firm bumped up its estimates for revenue growth from 2.4 percent to 4.4 percent for the year, noting exceptional growth from the MPU kingpin.

Intel, reported iSuppli, is expected to generate semiconductor revenue of $35.8 billion in 2005, up 14.4 percent from $31.3 billion in 2005. That represents nearly 6 percentage points more revenue growth than the next-fastest growing company among the top-five suppliers, Texas Instruments Inc.

“Much attention has been focused on the market share gains that Advanced Micro Devices Inc. of the United States has made in the PC microprocessor market at the expense of Intel. However, Intel’s overall semiconductor revenue growth actually is expected to surpass AMD’s projected rise of 11.8 percent this year,” said Dale Ford, VP of market intelligence for iSuppli, in a statement today.

The firm’s raised guidance calls for $237.3 billion in 2005 sales, compared to $227.3 billion in 2004. iSuppli’s previous forecast of 2.4 percent growth in 2005 was issued in September.

According to iSuppli, worldwide semiconductor growth exceeded expectations in Q3, rising by 4.5 percent from the same period in 2004, and by 9.3 percent from Q2 of 2005. Based on projected company sales for Q4, iSuppli estimates that the quarter’s revenue will grow by 5.3 percent sequentially.

Big Fish Get Bigger  Along with Intel, the number-two and three chip suppliers -- Samsung Electronics Co. Ltd. and TI -- also are expected to solidify their positions. iSuppli estimates Samsung in 2005 will increase its revenue to $17.1 billion, up 8.5 percent from $15.8 billion in 2004. TI is set to increase its chip sales to $11.1 billion, an 8.6 percent increase from $10.2 billion in 2004.

“Samsung and TI have consistently increased their share of the market since 2001, and now have clearly separated themselves from the rest of the top-10 semiconductor suppliers in revenue market share,” Ford noted.

Looking at the other leading chip suppliers, number-four-ranked Toshiba Corp. is expected to generate 7 percent growth, allowing it to pass European chip makers STMicroelectronics and Infineon Technologies AG and rise back to the top five again in 2005, after slipping to seventh place in 2004, the firm said.

Infineon has announced plans to spin-off its memory business into a separate company in 2006. Based on 2005 revenues, Infineon would be ranked number 15 if its memory revenues were excluded. 

On that, iSuppli said five companies are expected to compete for ranks eight, nine, and 10 in 2006: Philips Semiconductor, AMD, NEC Electronics, Freescale and Hynix. The difference between number-eight Philips Semiconductor’s market share and 12th-place Hynix Semiconductor Inc.’s market share is estimated to be only 0.11 of a percentage point in 2005.

Second-tier Results

Based on expected revenue growth of 2.4 percent in 2005, Freescale Semiconductor Inc. is expected to drop out of the top 10 and end the year ranked in 11th place, just ahead of Korea’s Hynix Semiconductor Inc., iSuppli reported. With impressive growth of 18.5 percent, Hynix is set to be one of only three companies in the top 25 to achieve revenue growth of more than 15 percent in 2005.

IBM Microelectronics’ chip revenue is expected to rise by 30 percent, allowing it to move back into the top 20, up from 21st place in 2004. Nvidia Corp.’s forecasted growth of 22.8 percent will propel it to number 24, up from the 29th rank in 2004, iSuppli said further.

With ATI Technologies Inc. capturing the 25th position in 2005, a total of three fabless semiconductor companies, including Qualcomm Inc. and Nvidia, will be among the top 25 for the first time. 

Finally, iSuppli noted seven companies among the top 25 are expected to experience revenue declines in 2005. Hardest hit will be NEC, with a 12.2 percent decline; Infineon, with an 8.7 percent drop; Sanyo Electric Co., with an 8.5 percent decline and Renesas Technology Corp. with a 7 percent decrease.