Fabless semiconductor companies enjoyed an up Q2 with revenue for public fabless companies totaling $9.3 billion or 7.9 percent sequential growth sequentially and 4.2 percent growth over the same quarter last year.

That’s according to the Fabless Semiconductor Association (FSA), which said that fabless revenues for the quarter outpaced global semiconductor revenues of $53.9 billion, a decrease of 2.1 percent from the previous quarter.

Revenues from public fabless companies made up 17 percent of total semiconductor sales in Q2. North America represented 76 percent of Q2 fabless revenues, followed by Asia at 21 percent and Europe at 3 percent.

For the first six months of 2005 total public fabless revenue was $17.9 billion, a 6 percent increase over the same period a year ago.  Global semiconductor sales totaled $109.0 billion in the first half of 2005, a 6.5 increase over the same period last year.

"Overall, we expect the fabless industry to achieve 7 percent growth in 2005," said Jodi Shelton, co-founder and executive director of FSA, in a statement. "However, the top ten fabless companies are collectively on track to achieve double-digit growth this year. With these companies at $1 to $3 billion and more in sales, this is a tremendous feat."

FSA also noted that new private capital for fabless companies increased in Q2 with 37 fabless companies raising 448.1 million, a 24 percent sequential increase. Fabless companies represented 64 percent of the funds raised by the semiconductor industry in Q2.  The total number of fabless deals also increased in Q2 sequentially -- by 23 percent. However, the total number of deals dropped year-over-year by 19 percent.

Early stage companies were popular with venture capitalists in Q2 with 51 percent of all investments going to first and second round funding.

Three fabless companies completed initial public offerings so far in 2005, while a fourth filed a registration statement.

Mergers and acquisitions for the first six months of the year totaled $2.5 billion, including one of the largest deals since Q4 2000 – Integrated Device Technology’s acquisition of fabless Integrated Circuit Systems in a deal worth $1.7 billion.

FSA also noted that overall average prices for 200mm wafers climbed 11 percent sequentially.